Instructions on the website for the bid are pretty much clear, says to do a deposit $5k to the courthouse cash, then if you do win an auction you have 24 hours for the full amount.
My questions are, can the houses be inspected ahead of time? at which point do i do a title search? Do i need to get a title insurance when doing the closing? Is there additional fees i should be aware of? I will really appreciate any advice you can give me.
Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
6y
@Rosemary Rendon
Buying at the county foreclosure auction for your first investment is crazy risky. It took me 4 years to even become somewhat good and knowledge at doing it...I would recommend doing about 6 months of research and planning before jumping in the deep end of the pool....
Real Estate Broker · Miami, FL · Member since 2018 · 236 posts · 99 votes
6y
@Rosemary Rendon Typically you will not be able to do a physical inspection simply because there might be people living in the home that do not even know about the auction. This could be the homeowner or tenants. You have plenty of time to do a title search because auctions are scheduled many weeks in advance and it is stated in the daily calendar of the auction website. The key is to make sure to purchase the 1st lien of the auction sale. If you do not purchase the 1st mortgage lie of the auction you might have issues with other lawsuits eventually. There is no closing in an auction. You pretty much pay the court house once you win and they issue a certificate of title. This strategy is very risky and I only recommend experience investors to take this risk. The reward can amazing only if it is done correctly and the 1st mortgage lien is purchased but at the same time you also assume all violations and issues associated with the property with no exceptions. Hope this helps. Good Luck!
Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
6y
@Rosemary Rendon
Buying at the county foreclosure auction for your first investment is crazy risky. It took me 4 years to even become somewhat good and knowledge at doing it...I would recommend doing about 6 months of research and planning before jumping in the deep end of the pool....
The auction market in Miami is very competitive. There are many seasoned investors looking for potential deals. If this is your first deal and you manage to outbid everyone in the Miami market and get the property, you probably overpaid for it.
I would suggest networking to find a seasoned investor to partner up for the first few deals. This way, you can learn the ropes without having to pay dearly for it.
If you still want to go the auction route, I would suggest looking at other markets where auctions are less competitive, at least until you get more experience.
hi thank you all for your replies, one last question, when buying in auction or a cash property, with a title search i will be able to find out the first mortgage amount, any violations, taxes owed , liens against the property? Or even if i do a title search I am at risk of something coming out later after i pay off the property.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
6y
Auctions are high risk. I would only look to that after I have built up a portfolio of properties with free cash flow and money to lose on high risk high reward ventures. Consistent, persistent, and not blowing up your account wins the race.