Quite often when getting started as a real estate agent or broker many assume that getting their real estate license will provide a sure financial future when, in reality, getting your accredit is the first leap in a very long course of action towards financial freedom. While real estate is an impassioned specialty there is very much work ahead once you get your agency.
With most online or classroom real estate academy training courses there is little programmed instruction suited to real world experiences that you will come across. While each state has unconventional requirements almost every real estate academy has the same basic facts. In reality, there are few courses nationwide that handle even the basics of how to fill out your state mandated residential purchase agreement. Why is it that the Department of Real Estate expects new real estate agents to be able to successfully finish off a business deal when the core educational facts aren’t even covered? It doesn’t have to be like that.
Although each state has different documents there is one contractual single family residence purchase contract that is the exactly the same throughout the US no matter where you live: the HUD-9548 contract contract. And, that agreement seems to be the one that is the most misinterpreted.
First, let me dispel a myth: HUD owned homes are not lower income housing. HUD homes are one to four unit housing that had an FHA insured loan. Simply put, HUD owned homes can be a single family residence, a duplex, triplex or quadplex. The loan maximums for these homes in Los Angeles County California are as follows: Single Family Residence-$729,750, two-family-$934,200, three-family-$1,129,250, four-family-$1,403,400. So, you can see that a nice home can be purchased in those price ranges. Many new agents exclude HUD homes sales from their efforts and that is not a wise move. Many agents are missing out on some profitable sales that could increase their bottom line tremendously but simply don’t take advantage of these sales because they don’t understand the HUD process. By simply selling an additional three to six HUD homes per year one can increase their revenue tremendously. Nationwide, no real estate academy will guide you through the HUD 9548 contract and demonstrate how to effectively execute the contract.
While the HUD 9548 contract is the same throughout the United States few agents take the time to understand how to properly execute these contracts as many are focused on short-sales or bank owned REO’s. Never again make that mistake and exclude this opportunity of a life time.