In this video, I am showing you how I find properties on Hubzu.com to bid on. As you can see from this video, there are a lot of signs on the property indicating that this property is a Hubzu property and that there is a hubzu auction online where you can bid on this property.
However, if you did not know what Hubzu was, or that it was an online auction site, you may just drive by this property and all you would see is a “for sale” sign. That is what most people think. Understanding this difference is key because if you do, then you know that there is an online auction on this property and you also know where that online auction will be held (Hubzu.com).
If you are going to be buying and bidding on bank owned properties, then it is imperative that you understand how to identify bank owned properties when you are driving for dollars through your target market. Identifying Hubzu properties is one way to do that. You should also know how to identify HUD Homes, Fannie Mae Homes, Freddie Mac Homes and Bank Owned Properties.
I anticipate that later this year, there will be many opportunities to buy bank owned properties at a discount on platforms like Hubzu.com
This may very well become one of the best real estate investing strategies of 2023. Hubzu.com is a website platform that sells bank owned properties for banks. They charge the banks a fee to liquidate their properties. All Hubzu properties are listed on the MLS as well but the key thing to know is that they are listed on the MLS at the opening bid price (which is not where the property will sell).
You can search the Hubzu platform for properties directly by City, County or State at www.hubzu.com. If you are driving through target market neighborhoods like I do every week, then it is not hard to notice these properties (since the signs are so obvious). I found this property by driving through my target market.
When you find a Hubzu property for sale, all you need to do is go to Hubzu.com to bid on that property. You need to register before you can bid and they may ask you for a credit card for the deposit. If you win a bid, you can wholesale the property (by double closing) or you can close on the property like I do and fix and flip it or keep it as a rental or Airbnb.
I have found many Hubzu homes just like this one by driving for dollars through my target market neighborhoods. Many of my students have found their best properties this way including my student John who found his first fix and flip on Hubzu.com and then after knowing what the signs look like found his second fix and flip on Hubzu as well!
If I see a Hubzu.com sign, I stop and I take a look at the property and review it. Since I am an agent, I have access to the lockbox code. Having a real estate license helps because it gives you access to the lockbox code and access the property. You might not think this is a big deal but consider that I can be driving through a target market, see this sign and then retrieve the lockbox code which gives me access to the property.
I can then go into the property and review the interior and calculate how much I would be willing to buy the property for (including what it would cost to repair the property). Then I go to their online platform at www.hubzu.com and I bid on the property up to my maximum offer price. I do this right there from my iPad in my car! Most people living in the neighborhood drive by that sign every day and do nothing with it since they think it’s just another house for sale. But it’s not. It’s a bank owned property that can be purchased for pennies on the dollar. And knowing how to recognize that by spotting the signs is key. And having your real estate license is important too since it gives you access to the property. That is why I always recommend to my students that they get their real estate license.
Searching Hubzu and other online auction platforms like Auction.com where banks list houses for sale is a great way to find deals. I have found and purchased hundreds of houses on these platforms. I anticipate that with the increase in foreclosures and bank owned properties, this will be a very important resource for real estate investors in 2023 and 2024
