Updated over 7 years ago on . Most recent reply
Seeking advice in flipping houses.
Im looking for a real estate investors/ flipper who is willing to share some knowledge in the home auction business. I'm highly interested in investing in real estate. Any information would be very much appreciated. Thanks in advance.
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Hello Armando! I hope you get several answers here. First, I would try to learn all about it to gain confidence. Home auction like most other niches, you will do well depending on how hard you work. Do not buy single family homes for rentals because there are many things to look out for. I have been doing this full time, 7 days per week, for about three years. Since I am bedridden I have lots of time to do that as much as I want. Before that, I had about 30 years in construction and real estate brokerage licensing around Dallas, Texas which is where I was born and raised. I did graduate from college with honors . Since you did not say what your goals are, I have to make several assumptions. I will assume that you want rentals. having experience before getting into apartments is a myth. Just start off small and then slowly expand. Many of the small complexes are owned by older individuals that do not know what what they are doing and tend to be motivated and might do owner financing. The more units you own in one place the better you will be. When you get up to about 30 units you can afford a property manager.
Home auctions can be OK but go to the first one or two just an observer to see how it works and you might get acquainted with some of the others that show up and network with them. When you think you are ready to buy show up with a budget amount in your mind and stick to that and do not get emotional about purchasing something. One of the largest drawbacks is the having to pay in full that same day. Try to spend some of your pre-auction time to look at the units you will bid on. All counties have their own rules and contact them to get the details like frequency, the time, and where they are held,
Most counties have what is called a "redemption period" of time that the previous owner will have to pay the taxes that are owed. Whatever you may have paid back what you invested. That type of deal might pay off for flippers depending on the location, price paid, and the demand in that area. Before your bid do the research on that property. If that unit is empty it may have been for a few years. Much of your competition is probably investors but do not let that scare you. The county sells a interest only obligation or a property. Know what is being offered. If you are taking advice about that from a company or an Individual they need to have experience in the same field of what you are asking. It is usually better to do that face-to-face rather than over the Internet.
No matter what you choose to do always do your research including evaluation and inspection. Always feel good about what you are offering. The more creative you can be, the better. Most successful people usually are brave. Good luck to you!