Auction Bidding in NJ

[Sonia Singh]

can anybody tell me about buying real estate auctions in NJ, preferably in Hudson county? all the bids start at $100 and must be paid full in cash. I only have about 20k cash on hand. is bidding unrealistic for me?

[Jennifer Petrillo]

When the bid starts at $100, that usually means that the bank is buying back the property in order to re-sell or auction it again. You will not win a property when the bidding starts at $100. I look for auction properties that have real starting bids, in the tens of thousands. Those are the ones you can actually win. I always visit properties before bidding, to get an idea of what repairs are needed and ARV (after repair value). Also do whatever other research you can, pull permits from the code office to see what repairs have been done in the past and what might need to be done in the near future, look at tax maps to confirm property size, check comps (Refin is good for this). With 20K in cash, you could maybe partner with another investor just to get started. Unless it is a very low priced property or you have good W2 income, you are unlikely to get a hard/private money loan with that amount of cash to bring to closing.