Hello I am new to BP and investing. I have been thinking about doing some initial investing in Baltimore, MD. I have noticed that a lot of the less expensive properties on sites like Realtor.com are being sold through auction. Unfortunately, I am not familiar with how the process of purchasing through an auction works. I am looking for advise from anyone that has experience with these sort of purchases. What type of due diligence is required before purchase? Are the homes usually free and clear or are their liens associated with the properties? What are some of the things that I should look out for or be cautious of as an investor? My plans are to purchase and use a property management company in the area. Any advise would be greatly appreciated.
@Santana Williams i bought two homes at the same auction. Great cash flow.
Things to think about - what is the maximum you'd bid up to and still consider the ROI worth it? If it's vacant, can it be rented out? How quick?
Will repairs be needed?
Liens can be attached, but it might not be. Usually you’ll be paying all transfer and recordation taxes.
I work with a number of investors in Baltimore. PM if you want to talk specifics.
@Justin Lanciault Thank you for your help! I will be in touch
I would assume problems and bid accordingly.
If vacant I would check how long it has been cause BGE might have closed the account, and it can cause a problems, are there any liens attached, I assume there is pics, then it is easier to guess the repairs etc...
If not vacant, rented, then if it is legally rented etc...
Just assume you will have some problems and bid accordingly