Real estate auctions beginner advice

5 Replies

@Jerry Ciesielski I could’ve elaborated way more. So I want to get into buying houses through auctions. I know most auctions require 10% percent done. A lot of them I don’t have money for. I’ve looked into other means such as private companies or personal loans. My credit isn’t great and I’m working on it currently. What would be the best way to finance it if I can’t do it myself. Also I’m looking at auctions in northern suburbs of Chicago

@Pache Akono well first, there are different types of auctions. When most professional REI speak of auctions, they are referring to foreclosure auctions or sheriff sales. I doubt you are talking about those since those require 100% cash. So I won't talk about them... however IMO those are the only auctions you are going to find deals.

There are other private or online auctions like auction.com and hudzu.

I have bid on a few of those but never won a property. IMO, they are not real auxtions but rather just a different way of marketing a property that's for sale. Yes, many of the properties are "distressed"... mostly REO and hud...but they are really trying to get near retail prices. If you"win" the auction, you don't actually get the property. You get a phone call from the listing agent who tries to negotiate a sale by getting you to increase your bid. The better a deal you think you got in the auction, the less likely you are to actually get the property.

I have found them a waste of time.

Maybe others have a different experience.

Which specific auctions are you referring to and if you don't even have 10%, what's your plan?

Updated 23 days ago

I thought later if your 10% was referring to the amount needed when bidding at Sheriff Sale. So maybe you were referring to sheriff sale but you need the other 90% within 24 hours, so its effectively 100% needed. There is plenty on BP about sheriff sales. I encourage you to visit and watch. It is not a place for beginners.

@Eric Michaels

At Sheriff's sale auction, know how much $ down you'll need at time of sale, know your max bid up front and stick to it - don't get carried away. If you don't win at the sale, find out if it was purchased by an attorney representing the bank - if so, follow up with them and you may find the property turns up later on an REO property site, possibly for less than it sold for at Sheriff's sale

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