Is this a BRRRR strategy

[Joshua Hughes]

How would you buy a house off the county assessor website? And is it a good idea to buy a rundown house for cheap? Newbie here⁉️

Thanks everyone 😁

[Randall Alan]

Quote from @Joshua Hughes:

How would you buy a house off the county assessor website? And is it a good idea to buy a rundown house for cheap? Newbie here⁉️

Thanks everyone 😁

If you are referencing foreclosure sales, in Florida you have to put real money in your bidding account on the county’s Real Foreclose website. After that it is a bit like eBay  You have to cover 5% of your bid in the account… so if you wanted to buy a $100,000 house, you would need at least $5,000 in your bidding account.  

if you win the bid, you then have to present the balance of your FULL BID in certified funds to the county the next day following the bid.  If you don’t submit the balance of the funds, you forfeit your 5% ($5,000) that you used to bid the day before.  The risk of losing your 5% precludes - or at least discourages - people from bidding who can’t actually close on the property.

Buying off the foreclosure market comes with significant risks.  You don’t get to tour the home.  It may or may not have appliances, a leaking roof, a messed up foundation, holes in the walls, termites, etc.  So the discount you get on these properties is your compensation for accepting those risks.  You then need money to bring the property up to the level you need it to be… either to rent or own or flip. That can be a lot more money.  So foreclosures are not for the faint of heart, or beginners.  There are no financing options… it’s a pure cash deal.  If you have the money to play the game it can be rewarding.  We’ve done several foreclosure purchases.  One thing to know is that often there will be tenants living in the property… so the first thing you may be faced with is evicting the people in the property.  Not a big deal… but can take a month or two to clear that up.  We have also turned around and started renting the property to the existing tenants… so just depends on how things go. 

Hope it helps!

Randy