First fix & flip from an auction

Columbus, Georgia
Rehabbing & House Flipping
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First fix & flip from an auction

DeQuantay McDowell
New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes

Hello BP community, 

I'll be attending my first auction with goal of acquiring a property best for a profitable fix & flip and I'm working to better understand how to identify properties that have strong potential for renovation and resale. I've been analyzing local comps, rehab scopes, and exit strategies to make sure I'm targeting properties with strong potential and with manageable risk. 

In between time I've been learning how joint venture partnerships are structured where one partner brings in capital or experience, and the other handles project management and execution. Insight from anyone who has successfully combined resources this way would be extremely helpful.

Also, for those who have experience purchasing at auction or working with distressed properties, I would appreciate hearing how you 1) evaluate properties with limited access or inspection opportunities 2) manage risk related to liens or title 3) structure partnerships or collaborations for these types of deals. 

- Thank you!

6Reply
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Andy SabischPro Member
Investor · Jackson, MS · Member since 2021 · 657 posts · 559 votes
11mo
Quote from @DeQuantay McDowell:

@Account Closed Thanks, have you found it difficult to getting a JV partner for the capital side?


In order to get a JV partner for a deal that brings capital, you need to be bringing the other side of the equation which is experience and project management skill. Without that, the partner will be left trying to balance both sides. Before looking for a JV partner, you need to gather either capital or experience as without either, there is nothing that would attract a partner.

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  • DeQuantay McDowell
    OP
    New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
    11mo

    @Account Closed Thanks, have you found it difficult to getting a JV partner for the capital side?

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    11mo

    Auctions are difficult, you need to have a little bit of a team setup, or if it is you, you need to be working a lot to get the deals on point. 

    1. Get the list of auction properties, review all comps, pick out the ones that make sense

    2. See when the day is and drive the properties and comps, and confirm all data is correct to the best of your ability

    3. Check the morning of the auction, these tend to get canceled frequently, so Need to check that morning and confirm, if some have canceled take them off the list

    4. Once you get all info, comps, GC quotes from any photos you can, and they have not canceled show up with the cashier's checks ready to go... Have a hard line in the sand on price you will pay and do not go over it. 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    2Reply
  • Scott Chilton
    Real Estate Broker · Belmont, MA · Member since 2025 · 150 posts · 65 votes
    11mo

    Hi DeQuantay,

    That’s a great step forward. When buying at auction, the best move is to get as much information as you can before bidding. Check recent sales on nearby renovated homes so you know your after-repair value, and always plan a solid cushion for surprises since you often can’t inspect inside. A good title company can help you spot liens early and save you from costly mistakes. If you’re doing a joint venture, make sure roles, profit splits, and decision-making are written clearly from day one. It keeps things smooth and protects both sides while letting you focus on the deal.

    1Reply
  • Mark Cruse
    Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    11mo

    I don't know when your auction is, but if you don't know any of this now, you have zero business trying get that property now. You can do tons of research but there is no way to mitigate much of the gambling type of risks. There are things that are impossible for you to know. If that sinks you, it is what it is. In terms of JV partners, you should have all that set up beforehand. To get a JV partner, its usually acquired through a reputation of being a credible and solid investor who knows what they are doing, because eventually you have built a network. Even with that, it takes time to vet these people. From what you are describing here, there are dozens, if not hundreds of scenarios that could make your entire project go sideways and you lose. My advice is to get your first property from some reliable source when you can do thorough inspections and clearly understand all the numbers you are working with. It's very hard to get partners who have no idea who you are and have no experience. Try getting one from a reliable wholesaler, or some credible deal source. Starting with a property you can understand the full scope a little better can increase your likelihood of successes. Over time, it should get easier, and your reputations will follow. Good luck.

    3Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Mark Cruse thanks for the advice, when it comes to fix and flips what do you think stands out to JV partners?

      1Reply
    • Mark Cruse
      Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
      11mo
      Quote from @DeQuantay McDowell:

      @Mark Cruse thanks for the advice, when it comes to fix and flips what do you think stands out to JV partners?


      In most cases, a credible JV person will only deal with people who have a proven track record, that they strongly believe can execute their part of the equation. For instance, I know several investors who have a strong background of executing a flip. I'd look at the numbers they have and determine if it will be a win. There is no way I would go with anyone inexperienced. It's a very high failure rate with opportunities for so many things to go wrong, which makes us both lose. If I was to dump my funds into a project while they run it, they better know what the hell they are doing. My experienced partners have vast resources. They are intense project managers and can mitigate nearly any situation that arises. These relationships have built up over years of us seeing each other operate. If I have a project and want someone to bring me the money, they already know up front how I get down. When I had people invest in me, they knew I had never lost on a flip. They saw multiple before and after projects and what profit was earned. They clearly know I know what I'm doing because of the resources and track record to back it up. They already know that if I went into the project, I have evaluated it for the profit margin so we both make out. They feel confident they will get their money back with profit. It's a lot more to it, but in general that is a blueprint of what serious and realistic partners expect.

      2Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Mark Cruse if you don't mind me asking, where would you recommend for me to start?

      0Reply
    • Mark Cruse
      Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
      11mo
      Quote from @DeQuantay McDowell:

      @Mark Cruse if you don't mind me asking, where would you recommend for me to start?


      What you are doing here is a great start. You are asking questions from experienced investors. Join a local REI association. There you can get to know experienced people doing what you want to do. Pick their brain. Read as much as you can from sources that are credible. There are plenty of approaches to investing but if you have your heart set on flipping, try to understand everything involved. Understand the thousands of things that can go wrong. Maybe you can find a mentor, but you have to be careful with that to. Make sure they know what they are talking about. Many just want money from you. Start getting to know good realtors and wholesalers. The right ones can provide various forms of education into this and possibly find you a decent deal outside of an auction. It's all about the numbers. You must understand that. Once you have a solid understanding of how much you should pay for the property, how much it will take to get it to code for sale and how to manage all those moving parts, you should be close to jumping in at that point. You will need a capable team of lenders, contractors, insurance contacts and real estate professionals. There are many moving parts to this and much of it has to be managed simultaneously. I know it sounds like a lot, but its reality. Until you have a solid understanding of these things I would not suggest jumping in. There are many more things you should know but you can pick those up along the way. I want to see you win. You can run anything by me.

      0Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Mark Cruse thanks, I will follow you and connect with you here on BP

      1Reply
  • Andy SabischPro Member
    Investor · Jackson, MS · Member since 2021 · 657 posts · 559 votes
    11mo

    Mark Cruse hit the nail on the head. Auctions are a viable source if you are aware of all the things that can go wrong (and often do). Is it vacant? Even if the auction says it is vacant, you may find sqautters that you will need to get out which takes time and hence money. Try explaining to a JV partner that you missed that one issue. Since you will not have the ability to get an inspection done you are rolling the dice. We have done many properties and still don't catch it all . . . starting out, we would have lost our shirts.

    As others have said, many auctions are cleared the day of the sale so any money you put into a GC quote or other expenses will be gone.

    Attend a few and see how they work before jumping in especially with someone else's cash at risk

    3Reply
    • Mark Cruse
      Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
      11mo
      Quote from @Andy Sabisch:

      Mark Cruse hit the nail on the head. Auctions are a viable source if you are aware of all the tings that can go wrong (and often do). Is it vacant? Even if the auction says it is, you may find sqautters that you will need to get out which takes time and hence money. Try explaining to a JV partner that you missed that one issue. Since you will not have the ability to get an inspection done you are rolling the dice. We have done many properties and still don't catch it all . . . starting out, we would have lost our shirts.

      As others have said, many auctions are cleared the day of the sale so any money you put into a GC quote or other expenses will be gone.

      Attend a few and see how they work before jumping in especially with someone else's cash at risk


      It's too many things to name. So much can go wrong. Say they get the home for 180k and its an ARV of 320k. Black mold, foundation issues, failing septic, flooding, new sump, all galvanized pipes, replace all wiring and a dozen other things can sink the project. Just two or three things on that list, combined with a gut renovation can take that 320k arv home to 700k in costs. Good luck with attracting partners. Regular fix and flips have high failure rates now with experienced investors. Imagine a rookie, having nothing in place or not knowing who to identify anything.

      3Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Andy Sabisch thanks for the advice, didn't know so much came with auctions 😅

      0Reply
  • Andy SabischPro Member
    Investor · Jackson, MS · Member since 2021 · 657 posts · 559 votes
    11mo
    Quote from @DeQuantay McDowell:

    @Account Closed Thanks, have you found it difficult to getting a JV partner for the capital side?


    In order to get a JV partner for a deal that brings capital, you need to be bringing the other side of the equation which is experience and project management skill. Without that, the partner will be left trying to balance both sides. Before looking for a JV partner, you need to gather either capital or experience as without either, there is nothing that would attract a partner.

    3Reply
  • DeQuantay McDowell
    OP
    New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
    11mo

    @Andy Sabisch to get into fix and flip do you recommend a mentor for experience?

    0Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    11mo
    Quote from @DeQuantay McDowell:

    Hello BP community, 

    I'll be attending my first auction with goal of acquiring a property best for a profitable fix & flip and I'm working to better understand how to identify properties that have strong potential for renovation and resale. I've been analyzing local comps, rehab scopes, and exit strategies to make sure I'm targeting properties with strong potential and with manageable risk. 

    In between time I've been learning how joint venture partnerships are structured where one partner brings in capital or experience, and the other handles project management and execution. Insight from anyone who has successfully combined resources this way would be extremely helpful.

    Also, for those who have experience purchasing at auction or working with distressed properties, I would appreciate hearing how you 1) evaluate properties with limited access or inspection opportunities 2) manage risk related to liens or title 3) structure partnerships or collaborations for these types of deals. 

    - Thank you!

    Hey @DeQuantay McDowell, welcome to the BP Forum! Sorry if this has already been asked, but is there a reason you're going to an auction to buy a property rather than some other way? Is there a property being auctioned that you really like or have you been unsuccessful acquiring properties either off-market or via MLS?

    [email protected]
    1Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Jaycee Greene it is a property for auction that the numbers made sense. I will have to do more research on something's Mark and Andy discussed in their post 

      0Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      11mo
      Quote from @DeQuantay McDowell:

      @Jaycee Greene it is a property for auction that the numbers made sense. I will have to do more research on something's Mark and Andy discussed in their post 

       @DeQuantay McDowell Got it. What kind of property is it and how many bedrooms? Is it a SFR with 2 or 3 bedrooms? Out of curiosity, what's your max bid price, how much will it cost to rehab, what will the ARV be? If you're going to rent it out, what should the monthly rent be?

      [email protected]
      0Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Jaycee Greene this is a SFH.

      • 3 bd / 2 bath / 1,127 Sq. Ft.

      • Max bid: $70k

      • Zestimate: $178,100

      • Rehab: $20k with 5k contingent

      0Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Jaycee Greene ARV: $185k, this is a cosmetic rehab with a current bid at $60k

      0Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      11mo
      Quote from @DeQuantay McDowell:

      @Jaycee Greene ARV: $185k, this is a cosmetic rehab with a current bid at $60k


      If that ARV is solid and the rehab costs are truly only $25k, I'd estimate the winning bid will be over $100k. How are you financing the deal?

      [email protected]
      0Reply
  • James McGovern
    Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 408 votes
    11mo

    My first flip was acquired via auction. 

    you need to learn more about what rehab looks like

    0Reply
  • Andy SabischPro Member
    Investor · Jackson, MS · Member since 2021 · 657 posts · 559 votes
    11mo
    Quote from @DeQuantay McDowell:

    @Andy Sabisch to get into fix and flip do you recommend a mentor for experience?


     As others have said, try to engage with others in your local area starting with REIGs.  When I say mentor I am not talking about the Internet Gurus that make their money from selling services not doing the deals.  Easy to make a slick promotion piece and put iyt out there for pennies but when the entry fee is $10,000+, that is no longer a mentor in my books.  I will temper that with the admission that I tried that route and lost what would have been the amount that could have bought my first property.  That's behind but I still reflect on the slick snake oil sales techniques that pulled my wife and I into the "course".  Steer clear of that . . . too much information out there for little to nothing - just vet what you are reading to ensure it is valid.  Joining BP is a step in the right direction as most of us are more than willing to help you avoid what we have learned the hard way.

    See if you can find a flipper that might be willing to trade his knowledge for shat you can bring . . . help doing some work, contacts, etc.  Quid Pro Quo works in this business.

    Auctions would be the last way I would suggest a new person explore to get into flips.  Look for smaller houses that are in need of some love in your area to start.  Smaller means less money to reno and easier to find a buyer.  

    Stay with it and let us help . . . 

    0Reply
  • Victoria OHare
    Member since 2025 · 85 posts · 17 votes
    11mo
    Quote from @DeQuantay McDowell:

    Hello BP community, 

    I'll be attending my first auction with goal of acquiring a property best for a profitable fix & flip and I'm working to better understand how to identify properties that have strong potential for renovation and resale. I've been analyzing local comps, rehab scopes, and exit strategies to make sure I'm targeting properties with strong potential and with manageable risk. 

    In between time I've been learning how joint venture partnerships are structured where one partner brings in capital or experience, and the other handles project management and execution. Insight from anyone who has successfully combined resources this way would be extremely helpful.

    Also, for those who have experience purchasing at auction or working with distressed properties, I would appreciate hearing how you 1) evaluate properties with limited access or inspection opportunities 2) manage risk related to liens or title 3) structure partnerships or collaborations for these types of deals. 

    - Thank you!

    Always get a title search before bidding to avoid hidden liens, and set a hard max bid with a 20-30% buffer for surprises since you can't inspect thoroughly. For JV partnerships, the typical structure is 50/50 profit split with the capital partner getting first position on returns and the operator managing the project—just make sure you have a written operating agreement covering budget, timelines, and exit strategy. Have your financing lined up before auction day since most require quick closes!

    1Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Victoria OHare thank you for the advice on the partner having the first position. If you don't mind, I will follow you and reach out if I have any questions 

      0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      11mo
      Quote from @DeQuantay McDowell:

      @Victoria OHare thank you for the advice on the partner having the first position. If you don't mind, I will follow you and reach out if I have any questions 

      Make sure you ask an attorney if there is any peril having a Partnership regarding liability. (Yes, there is a LOT of liability) 

      You are better off both having LLCs that are the partners, and it's okay to have 50/50 profit, but you need 51/49 ownership. 

      1Reply
    • DeQuantay McDowell
      OP
      New to Real Estate · Columbus, GA · Member since 2025 · 38 posts · 18 votes
      11mo

      @Ken M. I will keep this in mind, thank you for the advice!

      0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    11mo
    Quote from @DeQuantay McDowell:

    Hello BP community, 

    I'll be attending my first auction with goal of acquiring a property best for a profitable fix & flip and I'm working to better understand how to identify properties that have strong potential for renovation and resale. I've been analyzing local comps, rehab scopes, and exit strategies to make sure I'm targeting properties with strong potential and with manageable risk. 

    In between time I've been learning how joint venture partnerships are structured where one partner brings in capital or experience, and the other handles project management and execution. Insight from anyone who has successfully combined resources this way would be extremely helpful.

    Also, for those who have experience purchasing at auction or working with distressed properties, I would appreciate hearing how you 1) evaluate properties with limited access or inspection opportunities 2) manage risk related to liens or title 3) structure partnerships or collaborations for these types of deals. 

    - Thank you!

    Usually, what you really want to do is a week or two depending on your access to cash, you want to knock on the door and have a "proper" conversation. See if hey will sell to you. There are other steps, but you shouldn't wait for the auction. 

    Now, if you run a title report and there is a lot of "hair" (liens, etc) on the deal, you wait until the auction because an auction will clear up a lot of the liens.

    Buying at auctin is a little more complex than most people think.
    1Reply
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