The ins and outs of bidding on a foreclosure at auction.
Hello All,
I'm new to BP and wanted to introduce myself as well as hopefully get some advice since I am just in the beginning stages of pursuing REI.
I work as an engineer and am currently enrolled in a MBA program at the local University. I realize that is not particularly important to the topic at hand, but just wanted to make it known that I have a propensity for being very analytical.
The market I live in as well as want to invest in is extremely depressed. The city consistently makes top ten lists for "cheapest places to live". The schools are also well known for being some of the worst in the state. Unfortunate, but it's the reality of the city I choose to call home. With that being said, I truly believe there is money to be made in real estate in this market.
Anyway, to get to the point, since I am extremely new to the concept of REI I am curious about the process of bidding on foreclosures at auction through the County Public Trustee Office. It is my understanding that after placing a bid, if it is accepted, I would be required to provide a check for the total amount within a very short period of time. My wife and I are fortunate enough to earn enough from our 9-5's to make well above the local median household income, but are not in a position to start purchasing property for cash. Is it even possible to finance a foreclosed home that is purchased at auction? Are there better options I should be pursuing? I am interested in buying foreclosures at a greatly reduced price for flipping as well as buy and hold. Does anyone have experience with this particular technique? Preferably in a market that is extremely low-end compared to the rest of the state.
Thanks in advance for your feedback.