auction.com success stories? Anybody?

Question

1st Point: I'm in my earliest stages of reading books, forums watching DVDs etc and learning all that I can about REI. I've narrowed down my goals and motivation to flip houses. After analyzing a potential (deal) property in my hometown (from originally) on auction.com, analyzing comps (I know the area well enough) and the house it dumbfounds me to know how much equity sits in the house as is. The rest of the story is that the house needs serious updating and some maintenance to the tune of around 20k if you go all the way. So how does a brand new investor get a deal like this done with limited cash on hand? The auction is already running? I'm still in the dry run stage looking for virtual dry run deals before I take the big plunge. Maybe there are too many questions in my rambling post so any info that any of you can give. Thanks in Advance! GS

Nino Alfano · Answer

I won a property in romeoville il on auction.com took about 90 days to get the keys. Had a couple issues contacting them through my realtor. But that said and done I am in the process of rehabbing.

Currently on a hold because the gas company took the meter and killed the line when they winterized. So Nicor said it'll be a 300$ fee to re do the line to the street. Only problem this was last week and they told me they are not resuming work till jan1st on top of that they are 4 weeks behind.

So all said and done my realtor waived his fee which helped a ton. All goes well still going to be a nice flip.

Purchase price 79k after closing and attorney fees and auction.com fees and stamps I ended at 84k.

Since I own my own construction company. I will be rehabbing the property making my full gut rehab cost about 15-17k.

ARV is 140-150k

I should be on the high end of the ARV because of my finishings.

Hope it works once it is finished I will post a success story

Mehran K. · Answer

I did my first (and only so far) flip last year. We purchased the property through Auction.com. It turned out to be a success and netted about $8k after everything was said and done.

You mentioned "a deal like this with limited cash on hand." Does this mean that you don't have the funds to purchase the property in cash and fund the rehab? If so, two options would be finding a money partner or a hard money lender to possibly help fund the deal. Much due diligence and education is required before moving forward with those two options as there is risk and they'll want to know that you know what you're doing.

Hope that helps!

Carolyn Morales · Answer

from my understanding, Auction.com requires a $2500  registration fee refundable if you dont win the bid. But if you win the bid and dont produce the funds,You can lose the registration amount. I have been watching Auction.com in NE Florida. It seems most have a minimum bid and if it isnt reached ..Seller  either re auctions it or puts it on mls.

Gavin S. · Answer

@merhrank. Thank you it does. Yes the funds are limited. Probably have the funds to rehab or get it under contract with the earnest money but yes I'm lacking funds to just pay cash (which of course gets the best deals). After reading through the previous posts about Auction.com it sounds like the only way to mitigate the risk is to find a way to vet the property ahead, i.e. walkthrough etc which isn't always possible. So it sounds like accept the increased risk or be more passive and wait for more verifiable leads. Getting started without using hard money seems to be the most difficult part even though a few of these auction.com deals have plenty of profit if your selective, study comps, know the property issues, etc.

Thanks Again, GS

auction.com success stories? Anybody?

Most Popular Reply