First property bought via Auction.com

Brooklyn, NY · Member since 2016 · 17 posts · 7 votes

Hi everyone! I finally did it. I won my bid for a house on Auction.com today. It's a small 2 bedroom house in the Cudell section in Cleveland. It is my first time buying a house as an investment. I'm excited and scared all at once. I live in Brooklyn, NY. I will be coming here for all support from you all in the BP world.

3 Reply

36 views

Most Popular Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

be aware that just because you won the bid does not mean you won the bid.. we get frustrated with them when they come back and say bank turned us down.. it happens about 15 to 20% of the time.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

3 Reply

See this reply in the discussion

29 Replies

Jump to latestLatest

Sort by

Bob CollettPro Member
Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
9y
Cudell is a good rental neighborhood. Good luck.
0 Reply
Dan Mitchen
Investor · Cleveland, OH · Member since 2015 · 99 posts · 42 votes
9y
Congrats on taking that first step and the best of luck to you!! There are a lot of great resources here and a ton of great info available!
0 Reply
Tracey Dixon
OP
Brooklyn, NY · Member since 2016 · 17 posts · 7 votes
9y
Thank you!!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
be aware that just because you won the bid does not mean you won the bid.. we get frustrated with them when they come back and say bank turned us down.. it happens about 15 to 20% of the time.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
3 Reply
Ron Jurgeson
Investor · Lees Summit, MO · Member since 2017 · 12 posts · 8 votes
9y
I also have had them reject several of my winning bids. In fact, they have been doing it on the SAME property for like four auctions in a row in the past three weeks. I keep winning the "bid" and then they say not enough and even call to ask if you want to go higher. When I say no, they just relist it for auction.
0 Reply
Tracey Dixon
OP
Brooklyn, NY · Member since 2016 · 17 posts · 7 votes
9y
Oh no! Does this happen even after you have signed the papers and stuff? Also, the purchase is cash. I e signed all of my documents. Now, I'm waiting for someone to contact me about the money part. Thank you for sharing your experiences. I'm learning sooooo much here.
0 Reply
Karen O.
NYC, NY · Member since 2016 · 617 posts · 456 votes
9y
yes. It can still happen. Ten x has said yes but the bank can still say no. Happened to me 3 months back. Good luck
0 Reply
NaTarrio JonesPro Member
Rental Property Investor · League City, TX · Member since 2016 · 97 posts · 32 votes
9y
Congrats and good luck!
0 Reply
Dean H.
Rental Property Investor · Salem, OR · Member since 2016 · 202 posts · 305 votes
9y
My wife won a bid on one on Feb 24th, we had to submit about 53 pages of doc's within 24 hours ( which we did on doc u sign on an IPhone from a hotel in Vegas ) memory says it took them about 10 days to accept our bid. It finally closed April 3rd. We did take the option to get our own title insurance and close at our title company so we received a warranty deed. Only real problem is no one could ever track down the lock box code so we had to break in after closing to inspect and secure with new locksets ( new locksets are normal, breaking in not so much )
A light cleaning and a little paint and it should be rent ready on the 15th
Hang in there and don't get frustrated when they need everything immediately and then take forever to respond.
Roll on,,,,,,
2 Reply
Ashley Hernandez
Yuba City, CA · Member since 2017 · 101 posts · 52 votes
9y
Tracey Dixon congrats!! I'm hoping to do the same in the next month!!!! Jay Hinrichs is this the same for a tax lien auction? 😯
0 Reply
Tracey Dixon
OP
Brooklyn, NY · Member since 2016 · 17 posts · 7 votes
9y
Thank you so much for some insight. I used DocuSign to sign everything. I thought I had to wire money in 24 hours but no one has contacted me yet. Well, we'll see. My contracts are signed and that is important. Thank you all. Soooo excited!!!
0 Reply
Dean H.
Rental Property Investor · Salem, OR · Member since 2016 · 202 posts · 305 votes
9y
Tracey remember you only really have an offer submitted, we explained above that the bank could take up to 10 days ( I think ) to accept or reject your offer. More important is how you elected in all that paperwork to close the transaction. Did you elect to purchase title insurance ?
0 Reply
Tracey Dixon
OP
Brooklyn, NY · Member since 2016 · 17 posts · 7 votes
9y
Yes. I elected to purchase title insurance.
0 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Tracey Dixon - Congrats!! My first foreclosure was auction.com. Please keep us posted on how it goes for you!
@Jay Hinrichs -- are you talking about online auctions? I've never heard or experienced anyone at our in person auction.com auctions losing the house after winning a bid. They bid up to the bank reserve and if you go highest after that, the house is yours.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Elizabeth Wilson its common to be the winning bidder send your EM in Ext. and then they tell you bank did not accept.. its happened to us quite a bit actually.. but we bid a lot all over the country 12 different states.. so our expeirnce may not be yours.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Jay Hinrichs - Live auctions? (Not sure what "EM in Ext" means). We just buy live in Tennessee.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Elizabeth Wilson EM= Earnest Money Deposit .... EXT means ETC.. in my strange lingo.. typing to fast
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Jay Hinrichs - Got it.
0 Reply
Account Closed
Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
9y
Congrats! I've bought three from them. If you still have access to the auction through their website, check to see if a real estate agent is listed as contact to show the house. If there is one, then write it down and keep that in a safe place.
First house I bought, I had to break in through a window (small town, Labor Day weekend - Locksmith's voicemail said he went fishing LOL). The second house I contacted the showing realtor directly and tracked her down for the keys. Third house, the person on the phone told me they don't provide keys. I told her I had bought two other homes from them and that wasn't my experience. She put me on hold, transferred me to someone else, and they provided me the lockbox code.
Their customer service is spotty and not always helpful.
0 Reply
Marylouise Gaines
Investor · Chicago, IL · Member since 2017 · 3 posts · 0 votes
9y
Congratulations to you. Keep moving forward and keep asking questions. It's a wonderful experience. Good Luck & Blessings to you. I'm available if you need it.
0 Reply
Jennifer PetrilloPro Member
Investor · Asbury, NJ · Member since 2015 · 226 posts · 205 votes
9y
Congrats, Tracey! We bid at a local live auction on 1/26 (Williams & Williams Auctions), we were the winning bid (there were five phone bidders, which was a weird experience b/c a guy with an earpiece kept calling out counterbids during the auction). It was our first auction, I was so psyched to win, though we did bid up slightly higher than we wanted to (I know, not good, but I did quick math in my head and decided to keep going and fortunately what I decided would be my final bid was the winning one). The bank did not accept our winning bid until March 6! (almost five weeks later--they kept saying they had people out on vacation lol). Not only that, they said their reserve price was not met and they wanted an extra 5K. After crunching the numbers, we agreed to the extra 5K. But I wondered if they were just shaking us down.... So, from an accepted offer on March 6, closing is scheduled for April 17. So much for closing 30 days from the auction date! Best of luck to you!!
0 Reply
Caleb Hall
Investor · Goodyear, AZ · Member since 2016 · 31 posts · 50 votes
9y
Congrats! BP has a lot of good material and knowledge to move forward on!
0 Reply
Sam M.
Rental Property Investor · Los Angeles, CA · Member since 2016 · 62 posts · 18 votes
9y
@Tracey Dixon, what is your plan with the property once you close on it? How do you plan on managing an out-of-state investment property?
0 Reply
Krysshonda Williams
Millville, NJ · Member since 2016 · 1 post · 0 votes
9y
Congratulations!
0 Reply
Suzie Remilien
Rental Property Investor · Seattle, WA · Member since 2014 · 149 posts · 58 votes
9y
@Tracey DixonMany congratulations! I joined auction.com a few months ago, but I haven't used the service because I'm still not clear about how it works (clearing title on properties/not being able to see properties, etc.). Your story has inspired me; I'm going to take another look at the site keeping in mind some of the warnings on this thread.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.