Investing In HUD Properties

Andrea joins Larry to talk about investing in HUD homes


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Yeah. It's time to Bragg feet rich and generous. Frank radio was hosted by best selling real estate investing up to Larry go in San co host Kansas. For the next hour they'll show you proven and effective way you can be successful unrealistic. From the WVDs videos the flagship station of the brag radio network. Here are your post rock stars are real estate campus and Larry. That I like that it throws the ball well good job good job that you demand the legitimate. Live and in person. So I am here in the studio by myself. Because Candace. Once again is home loan recreational pharmaceuticals. She's got a leg propped up watching daytime TV. Because she had to have surgery so. I'm really disappointed she's not here but at the same time I'm really excited. Who is going to be joining us today. Because we have a rock star in our office that is buying and selling hide. Houses she's an agent she houses she sells houses she's just a rock star herself. And we call her the Hud muffins. Andrea Ludlow. What you can't be the Hud stud in the hunt Muppet right. That's all Shlomo love it so Andrea is in our office she's buying and selling property she works that are desk all day long. Analyze and deals put in India was you don't even put in bids on the VA does that for you right so yeah. Exactly analyze and deals and that that stuff so before we get started why don't you tell our list there's little background about Andrea. Who it is. What L I am originally sometimes you Centex. And done that appeared to canopy to intimate and began years in January. And I have and I. Well written for a they can you clear empty Nester and that was pretty excited when my son went to school here at Johnson and well generally. Like I really enjoyed the market I've been over the years. And they'll like it he can be to come into the area and them brilliantly. And fourteenth and wonderful to split when you come from AM hot steamy and that of course was a great art and. That is awesome yeah I love the Houston area of low of the food the barbecue. I love everything about Texas actually I always tell people Andrea human you can you already know this book. If I could pick any other place to be from it would be taxes. And yes absolutely. It did a great place holder card. But let Europe and that's also my love it now how long have you been minerals to. Blu eighteen years and the same probably think about sixteen minutes after years. Not counting Belichick felt very like I have been awhile. Yep that you've done a lot in real state not only is an agent but you've also been an investor is well right. Did he deal actually. I got bit by the let myself as he could tell it. When interpretation was happening here and didn't really good deal. On my you know amendment is really piqued my interest. So. Quite wealthy and teens quit going around and kind of got familiar with that little boy and I didn't get a lie what they like and that cadets. Was what a wonderful. Brokerage firm air and we kid coach moves forward we get into them coaching leaked pretty said that the magazine also at a brokerage and he'll certainly do. Keep brokerage. So just so everybody knows does pose for sale by owner. Personnel mild or Chad is over here in his hands in the air what is this vote. That's Chad does this help me out he's he knows what if it blows. That's. So while you've been in rules state quite a while. And so tell us a little bit about what it is that you do at our office. Well. I won't continue all hour we look at. I hit every single properties that as Alec in north and count Carolina available for investors purchased. Felt we cut through is. The numbers we go to the property. Let me candidate there say it but therefore wholesale. Or leave. Do you see it made lead you know we'll get DM. Look at the map can't see where we are you know as far as that it's not too little an area don't wanna see what that we helped by is going to be an. Commitment to peace deal are not coming up gonna be able to hack it property. Right Andrea walk us through. Walk us through a you know like analyzing video you pull up the house you know one point five extra quarter you'd first looking for what are you looking for. I'm the first thing I want to look at is what. The list price where cab. You know what it's so offensive to the market area right now for what's happening in full and active. Read about one that would be acted that way or my competition. And it's you know. Important captain Phillips for the same price at our next door neighbor and that's not very good we actually have competition we don't want. We want to leave the deal out there area at the moment that we had to quickly and our buyers can adequately. Exactly exactly and so we wouldn't be able to bias in the deep enough discount so we can turn around and resell it. And still be under the current list price correct. Good now tell our listeners what our formula is for that and we really have you know just a broad range formula and we have numbers for that. Drank. It didn't get a little item that we have on the board. First question we asked. How much for. And then the next question is Caylee may Allah and spread to wit how much we don't force. It's that simple we wanna be able to vote by. It could property IU on the market were eager. Owner occupant. We wanna be able to let you know give them some time now properties are not necessarily we have properties. Think we just wanna be able analysts and back out there we negotiated the best deal. Formed by air. And we just wanna pass that along sometimes you cannot then sometimes it's somebody for doing capacity and that he. And it sometimes it is before we ever and what we do we have burned through it and we have property it's well. If this thing easy formula. You know. ARP time point seven no. Might as our spread on repairs. Laughs so you need to be able approached imports. So ARV after repaired by Yusuf for example if the after repaired by his 300000. Pounds point seven. You down the 70000. Miners for yours let's say that 101000 you're down to 60000. And I say a source bread that you been referring to is how much do we want them we want to make. At least we try to make twelve to 151000 each deal. So get twelve. Twelve to 151000 shortly which gets a great deal that and sometimes seventeen and we implement it right now for twenty tweet. Thirteen nine Sonia. Awesome awesome that's that is now we also have. You know for lack of better term maybe a shotgun approach instead of like a rifle approach specific numbers. And the reason is is what can we resell for for example if there's a how's this for 49 and that. We could probably turn around and sell that house for 35 to thirty Nan that right. Most think about it. Guys ever buy list and think about this if my house is on the market for forty now and it's gone through a realtor to the CMA which you refer to our earlier comparative market analysis. It's gone through BP EO a broker price opinion. As to what this property's worth and will sell for and the people come terrible sales. They might have even done an appraisal possibly. And they determined that this house should sell for forty nine. So if that it's if this should sell as this for 49. We could sell it for thirty over thirty. So that way anything below that we pay for is profit. Right Andrea. Right that's absolutely right and and a lot of times because properties will. On the market and I really think it had properties get a bad rap and that's why they don't act like they continue to drop prices bottom. And for us that's why negotiate to get deals as well. Also now guys when we come back. Andrea is gonna tell us about some of the deals that were due in late nailed that we have in the pipeline right now this kind of money that can be made. So give Macy's call setup here tour of the office 877. The year ago. You get to come by and meet Andrea and myself and candles as soon as she gets back room dealing with for game. We'll be right. We'll. Welcome back to sporadic radio. And sustenance to be rich and the generous. They're going to we have a special guests holed today since campuses not with us today. Our special guest is Andrea from our office she is the hard muffin she makes offers all over a hundred. Hundred power houses of day north and South Carolina. And now we're moving into Georgia right hander. Yes that's exciting and we should be going off that expecting maybe next week. That's awesome I love and I'm loving it in the from their August risky move and now Alabama. And Tennessee. Kentucky and our chances. There you go I'm excited about it. And excited about it. So what Andrea. A war talk about some of the deals but before we do talk about some of the specific deals to give people an idea. What's out there and what you can do. Tellem a little bit about. Some of the ways that we do market our properties once we do get them under contract to buy from or any other sorts. Chair and picked Whaley market well one thing is there any time. That's not just midi and we get it really big response from orbit at times. I excellent about the one. And then we have our investors rehab flight took. Investors we have dot com right. Actually have dot com he did take a look at all the properties we have we have the photos that they year. We have access to express some of them. And you can also say you know what we sold to an idea where are typical and put it looks like right brains. We have I'll typically lead by does that same type of Al. You know just. Different locations. Right now are bandits all the really say is for closure in the they have the price on it and we put the sun's out before we close on them we can't really market. You know the house so we're marketing that we have a contract boom dials and or that we have a potential property in that area and the people know. If it's 800000. Dollar neighborhood and we've got a house are signed up in the neighborhood or multiple sides that say foreclosure. Fifteen and they know what's the deal right. Right right then yes they'll note that its cash bail the approximate square footage that we might typically bill. And yet that's it you know about information presently at rent them back. I know what I base that encountered back into account that it probably is close to. Exactly. And I don't wanna. That's exactly right and you know the cool thing I don't know if it's cooler but we can't relieve and keep up with the amount of our leads him. And I we can cut. I. Was that the ban already in. So just so everybody knows. Any time. Any time the bell rings in our office. We got another deal under contract reasonable house or solar house about 100%. The buyers by herself so that's also falls on the must've been Sylvia. Allen who obviously does not want the world right now. That's also now those of you who don't know Sylvia is actually Superman's mom Candace is mother in law. And she came to work with us and and she's by an MLS properties. And she's doing really well now yeah. That's awesome that's awesome so well Andrea let's. Let's talk about. Let's take one of our deals work what were the latest deals we under we got a house that Candace actually went looked at. Before she had surgery and took pictures of it. That tells about that house. That how did they need. Our original contemporary it's. You know the prairie airfield is nineteen point eight. I think that it July. 2800 square feet. Well almost 3000 square feet yeah. It out yet and Nike. I mean you don't have to listen walls open being he added that air how. To get into larger home. That welfare big time entertaining you and Tibetans and not really tiny tiny it all other decent size victory. And tout hasn't been just as in it has it remodeled said he originally out an Israeli political. And before that Terry. And as they really nice wonderful long fireplace you know. BM Bruce Fein is really cool it is right. Deer lake Murray's ball it's an eight lake community. Like very like content. That's in the series tonight. Yeah but from what I hear I operates a bit down about like excited because it that it did a great place. To go. That's great that's great. Now Andrea just just to let everybody know what is that house listed for right now what's that list of four. At half of currently linked to fourteen point. For 2151000. Dollars. And we are selling it for how much. One point. Nine. We're selling it now. How in the world can we sell our house is listed on the MLS for 116 now and then and only MLS it's a 1151000. People are that can't be. Weaving and sold houses to agents though Natalie. As a matter of fact I have. Do you call it all of this. He belt last that we get for the app for talked about I want it from agent and call again. While what Andrew is talking about is we we sent out an email to our buyers list that's one of the things that we teach guys how to do is to build Jerome buyer's list so you can buy and sell properties very very quickly. The calls whenever you get a good deal you have somebody to sell it to right. So that's very very important so we're sell that for 169 man. Which means we got it for less than that. And Andrea listen this is pretty bold but I don't mind doing it because I'm a firm believer in full disclosure trauma to repay him for the styles. I. So we paid a 144000. Dollars for the styles. And we're selling it for 160. We're not gonna touch it are. I. You know and some people may think always under making a lot of money yeah but we had to make hundreds and hundreds and hundreds and hundreds of allfirst. And do all kind of due diligence and analysis and negotiate go back and forth to get this one deal. And a 144000. So we can pass it on but it needs what about fifty to 70000 work. Yeah I'd today. Yeah I think you're gonna commit a rat about 6065. Elton. Okay good good so if a person bought it from us for 170. In the did put another sixty. In the right. They're gonna have four to thirty ish and and what is the AE RV or after repaired value that they could sell for. I'm thinking they are the F prepared value can be anywhere from 310 victory twenty. Courts look at the top U. From three to end at 320 so. If a person buys it from us. And they put put in 60000 repairs they're gonna have 230 and plus in the closing calls for whatever which is probably another 15100. Or finance and but. Then they're gonna have a potential to make even if they netted 300000. Dollar to 70000 dollar profit right. To deal won't go. That deal will go very very fast they won't last well and I know we literally just sent out that you Melba what it's not even up on our website yet. No it's not it'll go out tomorrow. Well that is huge two. Out. Hope that we argue and uncles all over the country. Miami has gotten carried these so far. I've got east stand. While. While yeah make sure we sell too inexperienced. Rehab or in we won't somebody that can pay cash and knows how to rehab house. And angry in a profit right. That is also but now Andrea does that help schools hub house right. What do you think Hud would sell a house that needs 76070000. Repairs. Is gonna be worth over 300 what would they sell it for a 144. I can't I really think that. I have a bad rap with fires I know personally and as a realtor. Other cultures they would always. Discourage buyers from my just because like it was and it. Yet but they're just difficult to do when they do it inspection poppy you know utilities won't be turned out for inspections. That's hard to explain to buyers expect. Actually new buyers. And experience buyers it's very hard to deal I don't know he can't turn our clients away. The point here really livid the buyers appear seller. Exactly exactly. When we come right back we've officials about this property and tell you about some more information 877 Larry go. This house will be gone by the time you call probably book check it out anyway you don't umpires with future investors he. Welcome back to brag radio invest in them to be rich. And generous. I'm really excited today because I have Andrea who is in our office. Hammered out Hud deals every day all day long the hunt muffin love and in person Andrea what's happening. These. A lot of phone calls or Japanese. I know we sent that email out to our bars this we had a ton of calls did me. Yes yes. I've got quite people you know I highly doubt there weren't really. Now we're now. Well I really appreciate you taking the time to be on here today this is also mom really excited that you were able to do this on though. You know listen the life of real term it's almost like 24 sevenths right. So the good news is you're used to that. Even though you're not really active as an agent here actually buying and selling. And make it offers and doing deals so we were talking about the house over the lake Murray. Listed for 29215. A believe. And we're offering it for sixty than and with the person puts another sixty and it. They're going to be unit at 230 ish and they can sell it for over 300 at that that's a really good fix it flip for somebody isn't. That's also that is also excellent though it won't last very long so that's just one I mean we just got that one. Just this week's tell us about. Tell us about. Another one that. That we recently because he doesn't gather churn and burn in now between you and Sylvia. You guys for pop and seemed like deals every every day or every other day. They're apparently have wine and have a lot. That we her ready to go low on should be completely first of next week and it'd near cherry point green paint. And it's about twenty minutes in Britain. And more at dirty Dick some minutes to Atlantic beach. So it's not over in the port area. Really nice area really solid market. And the capital to help out as well. Probably in late sixteenth at 2 AM brick ranch. And think about it does it just leave it cosmetic recap. Properties and Todd condition and and it and the whole. This couple. Blue. Got a pool is not an above ground pool. Now that. That be a liability not an ass with the. But the phone told him water. That's a good date. And it is people because then you factor everything break cracked in Egypt until it with tech. It's definitely open it up Opel. And we eat all our. He's been one for 1599. We're selling it for fifty young man. That partly price okay that's what we're selling it for. It's who were killing him or. Eight are beyond this line and I believe the Scotland and 120. Well I'll. That's good how much work does it neat. I need to cut medic at. You know a date of course you wouldn't want to put a whole lot of thought into high I'd agree that became. Toned himself for a 120 years that. Don't want to put it by media. I would say now or than 101000 navy fifteen. Well OK so let's say you have 75 minute okay and it's worth 710 to watch. Maybe 120 with a pool. So that's 35 to 45000. Gross profit at the mean you're gonna make. 3540. That would be. An amnesty a profit potential like that that sounds like a banking attorney term potential. That your potential profit right. Yes I have been emea. Litigation that has deflated real estate and we. Exactly you know that reminds me real quick I had I had somebody that ball house from the one time in this that you know there are based on your they call me out. And there were slightly eerie. I'm upset. A civil what's wrong he says I bought a house from view. And based on the numbers. You know we talked about it and it looked like I could make 60000. If he says only made 40000 dollar forty in an. It I'll promise you I'll never sell you another house could make him he'll. He's like whoa whoa whoa whoa that's not what I meant that's not what America but right now that's okay. I got plenty of people that would love to make 40000 dollars total light rehab right. That's great that's great so we're cell battle for fifteen or man. And it is. It needs about ten to fifteen and work. So the gross profit potential is 35 to 44 but suite that is. Now Andrea. I'm sure people are noticing that you know even though we're right here in Lake Wylie the Charlotte in the assay metropolitan statistical area. We. We don't have a lot of houses right here in Charlotte why is that. Dare say a lot of competition Charlotte and everybody like L Bonnie and Charlotte area is buying. Even inflated market. And your body and inflated prices and it's just you know it's gotta say it's it's it's not a thing. It it's not safe and do have that much competition area when you look for all felt even read you'd end up recap can be a little. Dangerous business analyst you. Have everything that they do immediately. Is you know turning a profit. Got to be really you know. Stable market understand and have to really good deals coming your way and village until it for the experience Torre aboriginal settlers would play. That's also just like the first property we talked about it lake Marie you know it's outside of Colombia or Lexington. In this one and how markets outside of somewhere. I don't even know where how lucky is the you said it's down near the peak somewhere. Let but we've got people that manage rehab long distance the do rehab you know. Spader who were five or ten states away right. We do and and they experienced it and I would recommend anybody China for our outlook. For the first time at the confident we're dealing. Not as your first deal though not as your first Diaw absolutely. Not you need to know what you are doing to rehab how else especially long distance but. But see. Gaza what you think about this okay even though these houses are not near Charlotte if you're Charlotte your list into this or no matter where you are fearless in this. If you're looking at doing deals in the sale while only wanna be in the southwest area of my town or the northeast area in my town you limiting yourself. Because think about it like this guy. If I have to bring you a deal and you can buy it. And do little work to it and sell or buy it do little work to it and rented out and get. You know 1822. Maybe even 30% return more where you can make a quick 35 to 45000. Were on the first example. 70000. Gross profit. Do you care if that deal was in your backyard the northwest portion of the southwest portion. You don't really care where it is the money spins the same right Andrea. Absolutely yes get. And. Yes and as a matter of fact it just they're harder to come by ticket you get people more fuel by expanding your territory and to post up and that sure talking about earlier. And that's exactly what we do that is exactly. Oh we do. So Andrea how would people get. All our buyers listen they just go to like investors rehab dot com and check out our properties that. And get on our bars less that way if they wanna get some of these the deep discounted deals. It turns out that way they can and viewed the property live at any time on. All of on the web site itself typical head and played. Up. We had you know email that we can and out just like the lightly talked about not only help if we don't have that one on the site yet there are times when we are just. But board at its key properties that we can't do you know collectively I can open and certainly and any help last. And that you'll be able to get those properties first. That is also that's really really good. Andrea I really appreciate you take him time to be on the show. This week on the next a next segment coming up we're gonna bring one of our Brian personal one of our successful students. That's out there doing deals in question it is well. And share with the how they are bragging. As well so Andrea thank you so much for being you know not really really appreciate it it's been all slump and guys. You need to call may see 877. Liter ego. And you need. To tell her you wanna set up a tour. To come by the office of media Andrea. Sylvia you'll be Candace and I you'll see a real work and we'll stay in office and see how we can help you guys. It started as well last get your free investor's kit which includes a couple of my best selling books. So will be right back with our writer of the week. Welcome back to brag radio at best and then lead in the world to be rich and most generous malaria and this is not here. This week. Because she of the game way he would have surgery and we miss her greatly. And she will be back next week. Hopefully she can get off of those non recreational pharmaceuticals. She's old and get up off the couch. Candice get up we need you so this is our fourth segment. And I'm really really excited because we have a student. Here with us rich that it is. Is out there doing deals haven't fond make of money and just the model student. And and he's out there being generous as well so I'm really excited welcome to the show originally nobody. I'm doing great Larry thank you thanks for having me. Man that's also that's also the you're very welcome and I'm really excited to have you know because you really are just a model student. Now give us a little bit of background about yourself you know about maybe when you got started rules say I know you didn't really get started like a single family homes. Until recently but tell little bit about your background and and where you come from. Yeah well at least six site living in Largo Florida. Bomb but I started in the manufactured housing business in 1989. With an older partner. He kind of took me under his wing. Taught me the business really help me out and things went. You know really well with that so I've got a lot of experience with manufactured housing. But not so much whip single family homes. Unfortunately. I'm in Florida and we got hit hard with the crash in you know PO six so seldom. I think a lot of people and we took a big hit tried to hold on but we eventually closed at the end of 2011. AM. So I was. Doing some odd job saw them. You know what and that's the real happening that people. Or bad things happen to good people in the me you've had quite a few dealerships at that time did. Yet we have why we have five and and yeah things things lend itself that we had the close of. While in in a market like urea and which are called growth market like when the market's hot. It really goes up. Fast but we. Usually don't hype it is in some. Corso really load times. Exactly exactly. So tell us a little bit about how you book how you how you met us and you know how how you got involved with us and and what's going on now. Yeah I'm you know I'm culture right thank god in email. Bomb. From you know Larry Allen's group about that they'll be richer and like so many of these so real estate courses like kind of looked at over plant stood over and I was really intrigued. By the fact that cheer. Buying homes for 5000 dollars. And of course it's more but. In making a nice profit on those so. I I dug a little deeper in approaches the course in February of 2017. While February. This year. That's good that's good so you got the filthy rich is corset you're working with one of our Ed consultants. In the office to Dina believe you said. Yeah yeah less than he spends. He's been also his integrate that I am. Really been a great man turn a great friend. That's also that is could yet dean is a great guy he really is and he's one of our three education consultants that are in our office to help people get up and run and and you know kind of consumed the course and goes through and answer any questions they may have you know they're not coaches are mentors but they are there. You know to help the students consume the courses and answer any questions that they may have so. You said you got the course in February. Then what happened. Well I got real excited and I started make it offers in March. And I. Felt that mobile moment Litchfield Kentucky. And I spoke with the real terror it'd been on the market over six months. And he said that there were couple Beatles on that but they had fallen through palm for one reason or another. And I thought well this might be a perfect time to make an offer ourselves. They were asking and 299. So I offered 5000. And it was very shocked and of course I was too but they accepted the offer. Wind. They didn't even count her I I would've paid more but they didn't even count her. Wow slow so wait a minute now that was this year in the real estate market there were in hot market right. A reality market. And you've got it at sixteen point 67%. Of list price less than 20% the list. That just blows me away I love that you know the moral of that story you don't know if you don't ask you'll never get it if you don't ask right. Yep that's exactly right. Man I love it I love it and you're in Florida in this properties in Kentucky correct. So it's like got talk about in the filthy rich history and you don't have to live where the property he has right. Oh heck now I I've never seen and I mean all I got pictures from. You know the web sites like zillow and And then what the on some extra pictures that the real terse sent me. That is huge that is huge OK so you bought the course in February you step. He told me earlier today that you use that kind of February going through the training and getting familiar with the he started making offers in March and you got this property in March right. And then what tell us what you did with that and how you make ammonium. Well I'm sorry I didn't close on the property until the end of April. Of but of course site started marketing issued taught the right away I put it. On Craig's list and pillow and I didn't put a fine now which was a mistake. But I was getting a bunch of calls right off the bat and the real tour sold the home left the lock box for me with a coat. So I would screen people I would call and let them go look at that. And unfortunately. I didn't do enough homework in the house was pretty much. I don't people that could put the 2000 down and were willing to pay you know 30000 to 2000 don't meet financing. But they didn't have enough money to do all the repairs. There was no heat and air force were soft there was appliances. So after about two months right. Canceled that add in to lower the price to 99. Towards investors. And started getting a lot of calls and about two weeks later at a under contract first 161000. For 161000 new more financially. No no he went to his bank pumped in investor. But he he said if you don't mind waiting a couple weeks peace I wanna get the money from my bank and I says that's fine just you know. Have them let me know that your approved which they did and we closed. August 4 just a couple weeks ago come. If it and the reason it took so long it was a real small bank in they have an in house appraiser who was on vacation for two weeks. And then it took another week or so for him to actually do the appraisal. While so I basically. You so you basically tripled your money let deal right. Yeah but net net after closing costs which just a little over ten program. That is huge I love it I love it now just real quickly got less than a minute tell us how they're being generous. Well I belong to a Catholic Church here in my town of Largo Florida so I do donate there. On another huge priority for me are my three kids on who are always in need of something. And I do you have two grandkids too. Own meetings shoes and clothes and books and what not so law so they're there I get I give to the tips to in the grand kids. That is also a really love that you're just a model student and you figured out how to take lemons and turn it into eliminated like that help people. The 5000 dollar house it was Christopher thirty you picked it up for five even though it needed more work that you fell. It's a 5000 dollar house in the troop soldier money. So thank you so much for vehicles are really appreciate God's call basic 877 Lago. Come by our office pick up the dvd about this model the images and they'll tell you to do exactly. What rich did well rich thanks a lot. Thank you Larry for more information about what Larry talked about on today's brag radio leading the world to be rich in generous got a bright radio dot com. You can also call 877 Larry go for free investors get to schedule a tour of the office. Or get more information on upcoming events that's 8775277946. Did it again next Saturday is best selling real estate investing author Larry going to co host Kansas. Featuring the latest strategy and techniques the pros used to make money in the real estate it's right radio leading the world to be rich and generous on news 1110993. WBZ.