Buying a house in auction but cannot pay for repairs

Innovative Strategies
6yFollow

Buying a house in auction but cannot pay for repairs

Christopher Edward
Developer · Member since 2019 · 9 posts · 0 votes

I have a couple thousand to invest and seen a property in auction that I want. I don’t enough for repairs so should I bid on it. If I do how can I find money for repairs?

0Reply
19 views

Most Popular Reply

Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y

No you shouldn't, because not only do you not have the money for repairs but you don't know how much money you will need to complete those repairs.  I'd look at some on market stuff first if just starting out, even if just to get an idea of what repairs are most common in your area.

1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    No you shouldn't, because not only do you not have the money for repairs but you don't know how much money you will need to complete those repairs.  I'd look at some on market stuff first if just starting out, even if just to get an idea of what repairs are most common in your area.

    1Reply
  • Christopher Edward
    OP
    Developer · Member since 2019 · 9 posts · 0 votes
    6y

    @Aaron K. Thank you much appreciated. I’ll go another route.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    @Christopher Edward  If you don't have money for repairs, don't buy it.  There will always be other houses and better to wait until you have the money you need to do it right.  Otherwise you will have all that money sitting there doing nothing.

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    6y

    @Christopher Edward

    I’m going to take the opposite end here.

    I think it may be beneficial to “go for it”. Attending classes, reading blogs, mentoring, studying books, etc. only gets you so far. To be successful in any field except teaching, you actually must “play” the game.

    So I say try to buy the property. If you're successful you just might find a way to obtain the rehab money (govt grant, second mortgage, private lender, equity partner, relative, REIA contact, BP poster, etc.). And you just might be able to resell for a profit to kick start your investing career, or rent it out as a first property holding.

    And even if the worst happens and you take a loss or even lose your two thousand investment, the education and experience you gain will be much greater than you could have gained from any $40,000 guru mentoring program.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Mario Am
    Specialist · Nashville, TN · Member since 2019 · 187 posts · 83 votes
    6y

    @Christopher Edward I agree I would go for it, just try to go fo refacing instead of replacing, there are so many youtube videos about this, a property doesnt need a new door when you can lain the existing one, paint the existing cabinets and the floor instead of replacing.

    As long it is not a HVAC plumping electrecl roof issue you should be good.

    0Reply
  • Brian Prudden
    Buddlake, NJ · Member since 2017 · 76 posts · 21 votes
    6y

    @Christopher Edward why not buy house go with hard money for repairs .or buy find a sell to finish the work make a few thousand.

    0Reply
  • Dustin Mathenia
    Flipper/Rehabber · Dallas, TX · Member since 2017 · 174 posts · 157 votes
    6y

    @Christopher Edward

    Buy it, don't touch it, sell it, cashflow then = profit ! Easy !

    0Reply
  • Christopher Edward
    OP
    Developer · Member since 2019 · 9 posts · 0 votes
    6y

    Thank you everyone who answered my question. Both sides make sense!!!!!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free