Depending on the size of your area and the investor activity, if you talk to some of the bidders you might find wholesalers who buy, add a few thou, then pass them on to investors. Some do in house hard money loans up to 80-90%, which can speed things up, and if they're vacant (or even if occupied, sometimes, like by renters) you can go look at the house before buying. A little daunting but still less risky than buying at auction. And easier than banging your head against the pre-foreclosure wall if that's not your thing. Check the Wholesalers forum.
That is good that you at least got to experiance that. I think I am going to attend one soon just to get the feel of things. I think learning every aspect of real estate is invaluble.
your absolutly right, most auctions arn't worth bidding at. Your best bet is to purchase the property as a pre-foreclosure. The bidding goes to high, and the profit margin is less
i agree with birddog1. try to obtain a list of people that have received a notice of default, (NOD) this way you can negotiate the price with the person and not have to compet with the 50 other people. better if they have more equtiy
I have not been to an auction for a long time, but, my experience was similar. Most of the properties with any equity did not go to sale. The owners likely got some financing. Also, tracking them was always tedious since very few of the properties for which notices of default are filed actually make it to sale.
My preference is pre-foreclosures or bank REOs. Chances for making a good profit are greater.
Depending on the size of your area and the investor activity, if you talk to some of the bidders you might find wholesalers who buy, add a few thou, then pass them on to investors. Some do in house hard money loans up to 80-90%, which can speed things up, and if they're vacant (or even if occupied, sometimes, like by renters) you can go look at the house before buying. A little daunting but still less risky than buying at auction. And easier than banging your head against the pre-foreclosure wall if that's not your thing. Check the Wholesalers forum.
That is good that you at least got to experiance that. I think I am going to attend one soon just to get the feel of things. I think learning every aspect of real estate is invaluble.
Kelly
your absolutly right, most auctions arn't worth bidding at. Your best bet is to purchase the property as a pre-foreclosure. The bidding goes to high, and the profit margin is less
i agree with birddog1. try to obtain a list of people that have received a notice of default, (NOD) this way you can negotiate the price with the person and not have to compet with the 50 other people. better if they have more equtiy
where can you find a list of NOD?
I have not been to an auction for a long time, but, my experience was similar. Most of the properties with any equity did not go to sale. The owners likely got some financing. Also, tracking them was always tedious since very few of the properties for which notices of default are filed actually make it to sale.
My preference is pre-foreclosures or bank REOs. Chances for making a good profit are greater.