Won My First Auction Today. What a Ride So Far!!
So, i'm finding it hard to find deals. I started sniffing around the auction websites last week.
I looked a my first deal Saturday. ARV of 415K. The auction started at 70K I looked at the house. You can see the sky from the basement. That hole in the roof has been there for the last 10 years. The house was a 2 family. 3 bedroom railroad rooms. 70-80 yard of garbage in the house. 100k, at least in rehab. It sold Monday for 275K plus 5% buyers premium. It was kind of discouraging to see this.
I look at another deal last night. ARV of 355K. The bid this morning was 85K. I drove by the house. The house looks great except for the roof. I know a guy on the block, he knows the house, he said its in good shape inside. So I bid. I win the bid at 102K. The auction company gives you 2 hours to review the paper work, than they want it returned signed. I called them, I asked for more time. They were cool about that. I told them I need until 5PM.
My lawyer knew the deal. He had another client that won the bid a week before, for 140K. The bank foreclosed and has the deed. But the homeowner is still in the house. The other client walked away from the deal.
The homeowner has another court date May 4th. The bank sold this house anyway. I don't close for 45 days. I think the bank will be good to close then. But than I need to evict the previous homeowner.
I think the reward is worth the headache. My magic rehab number is 50K max in any reno, so i could be into it for 152k plus eviction costs. It is costing me $5400.00 in earnest money to tie up the deal.
I think all and all it will be worth it.
