075: Unique Strategies for Buying HUD Homes with Larry Goins

On this episode of the InvestFourMore Real Estate Podcast Larry Goins joins me to talk about his real estate investing strategies. Larry has been investing in real estate for decades, and has also been a contractor, developer, Realtor, and wholesaler. Larry has a few strategies now that work best for him with little rehab needed and few headaches. Larry has also been a teacher of real estate investing techniques for many years, has been a speaker with Donald Trump and Tony Robbins, and did it all with no college degree. On this episode we talk about how Larry got started, how his career progressed and what strategies he loves to use now to buy HUD homes and other properties for under $50,000.

How did Larry get interested in real estate?

Larry saw a late night infomercial about real estate investing when he was younger. He decided he needed to be a real estate investor. He started out as a real estate agent, then learned how to wholesale properties, he even bought some land that he ended up developing. All this was thanks to a mentor he found who showed him multiple ways to make money in the real estate business. Larry learned to buy houses to flip, to hold as rentals, and many more techniques. Over the years he honed in on a couple of techniques that allowed him to make the most money, while doing the least amount of work.

How does Larry find houses for less than $50,000 to invest in?

Larry decided he did not need the hassle of fixing up houses or dealing with tenants. He devised strategies that involved seller financing and lease to own, where he would not have to make repairs. In order to make this strategy work well, he had to buy very cheap houses. Larry is in South Carolina, but he buys houses in multiple states. Larry has figured out how to buy HUD homes, auction properties, and even regular MLS listings all across the country.

Larry loves HUD homes because he can see the property listings online, knows how to find properties where low bids many be accepted, and HUD lists the condition of the homes. Larry also has built a network of real estate agents to help him find and buy cheap houses across the country.  Larry estimates 90 percent of the houses he buys are MLS properties that anyone else could buy as well.

How does Larry make money with his real estate deals once he buys a property?

Larry likes to buy cheap properties, because he can buy them with cash. Here is an example of a deal he might do:

• Buy a house for $20,000
• Sell the house to someone for $60,000 and provide seller financing
• Keep the house or sell the note to another investor

Why would anyone want to buy a house for $60,000 that Larry just bought for $20,000? The houses Larry buys need work, and may not qualify for financing. The buyer will most likely need a loan to buy, but may not be able to find any houses in that price range that are in good enough shape to lend on. Since Larry finances the deal himself, the buyer can buy the house based on Larry’s qualifications, not the banks. The buyer could have bad credit, a foreclosure, but still buy the house using seller financing. They will have to put some money down, and pay a little higher interest rate than a bank, but they have a house.

You can hear much more about this strategy on the podcast.

How does Larry make money selling the note on properties?

When Larry provides seller financing on a house, he might loan the buyers $50,000 on a house they are buying for $55,000. He gets paid every month since he is acting as the bank, but he can also sell that note to make a quick profit. He might be able to find another investor who will buy the note for $35,000. The other investor is getting a great deal, because he is buying a loan worth $50,000 for $35,000. Larry is making money because he bought the house for $20,000, but is getting paid $35,000 for the loan.

How can you reach Larry or learn more about his strategies?

Larry has a couple of programs he has created for investors to teach them how to invest in real estate. He has books on buying HUD homes as well as courses he created to teach his seller financing strategies. You can find more information on Larry and his strategies here, including his free HUD book.