Auction properties for flipping? Start?

2 Replies

Hi everyone, I would like to buy a house to flip but i am not sure where to start. I’m guessing auction properties are the best starting place. Has anyone here used Is it recommended? Any other suggestions? Thanks

Just curious, with such a big  X (unknown) factor in auction properties, are you sure you want to start there?  I have looked at this myself but I am investing out of state and the really reduces the inventory for many markets.  I have heard may be easier to work with in terms of policies etc. but I don't have first hand experience. 

Just leased a property yesterday and had 3 emails in past 5d while it was posted on zillow from others wanting to buy.  Doesn't hurt to ask I guess, maybe you could look there too.

Good luck.

I've used both and  You should know the prices they list are the starting bids, and there's typically hidden minimum reserve prices way above the listed starting bid.  They do that to get more people bidding and the company can bid against you until it reaches the reserve.  Also, you typically have to pay a $2500 deposit on credit card to even be able to bid that week.  You can find some deals once in a while, but many go for close to retail, especially in the best markets.  If you do decide to try, read all the fine print as some do not offer title insurance, or only offer quit-claim deeds, etc.  There's also almost always a buyer premium above the purchase price, and almost all are CASH ONLY, no financing contingencies allowed.

You'd probably be better off at first watching the for sale by owner ads for "fixer uppers", or hook up with some realtors and wholesalers in your market letting them know what your criteria is and they will let you know as they get new inventory.

Good luck!!