Onl.ine Auction Sites?

Question

I just purchased 2 properties this past week from bid4assets.  Can anyone tell me more about what I might be getting myself into?  Is this a good way to get properties or a good way to loose your pants? lol... [b]

Sherry Lewis · Answer

Justin,

I purchased both properties outright. I realized that it would be risky but I also knew that I had limited funds to get started and didn't want to sit on the sidelines any longer.  I too hope that I didn't make a huge blunder.  I will be going up to take a look at the properties to see what I have gotten myself into, but won't get emotional about it either way.  I will be glad that I finally atleast took a chance on myself :wink:   I will definately keep you updated on how it turns out.  Thanks so much for your input!

Justin S. · Answer

Sherry

How much earnest did you put down and is it refundable?  Buying property in another state, that you have never seen before, as a new investor is very risky.  In fact, it may be riskiest move I've seen posted on this forum.

I have bid on 100's of properties at courthouse steps and the success rate can be less than 1%.  And this is in an area I know very well.  The fact that you bought two on an online site tells me you may have made a very poor decision.  I hope I am wrong for your case, but I would start making your contingency plan before you get too emotional over it.  I wish you luck.

Sherry Lewis · Answer

Jon,

I agree with both statements!  Gutsy or stupid we shall soon see and yes plane ticket definately in order.  I did do my best on due diligence...Lets hope my best was good enough  :lol:

Jon Holdman · Answer

Have you actually seen these properties?  In another thread you're looking for someone to check them out in Cleveland and Toledo.  I'm starting to think you've bought these sight unseen from a long distance.  Wow, that's a gutsy move.  There are plenty of properties all over the country that fall into the NFF category - not for free.  I think a plane ticket may be in order.

Jon Holdman · Answer

The asterisks are showing up for the site name because its been banned.  That doesn't necessarily say anything about the site other than someone was probably spamming it here.

Justin S. · Answer

Sherry

How many bids did you put in before you won your first two?

Sherry Lewis · Answer

Jason,

I sent a pm to you with the details!  Would love your feedback

Jason Mathews · Answer

Sherry  Can you tell us the name of the site you ***** out?  As for whether is is a good way to get properties, it all depends on if you did your home work and checked the comps.  Just  because a property is listed on Foreclosures.com or Ocwen.com or Homepath.com or Homesteps.com to name a few doesn't mean they are a good deal. Many times properties on those sites are listed at what the local Realtor who is getting the listing comped it at and they may be offered at basically the same Market Value Price as other homes in the area.  Often times, especially if those homes are in need of repair, they will sit on the site for awhile and eventually you will see price drops but very often, even with the price drop doesn't bring the price down low enough to make it worthwhile. So, as I said in the beginning, it all depends on the comps. If you bought a 3 bedroom ranch for example for $xx,xxx and the comps in that same area are all X% higher (you have to decide what % discount you desire), then you may have a winner. I personally always look for a 25-30% minimum difference less repair cost between local comps and what the site ids offering. I hope this helps.