Never have delt with an auction. Please share insight. Thank you!
Hi Biggerpockets Community,
I need some insight on a deal I've been working on and I'm eagerly looking forward for your expert opinions.
I live in a neighborhood where real estate in really hot at the moment. I did some market analysis on my area and the on average sales price in the area is $550,000 when a property is fully renovated.
The good thing about this area is there's a lot of houses that still are in bad condition and need rehab. These houses have sold between $215,000-$275,000.
The property I am working on is a probate. After extensive research and having been helped locating the owners of the property, I've finally found it.
The property is with an attorney's office. They've informed me that the house was just recently shut down and they're in the process of evaluating the property for auction.
I believe I am early in the process, which I think is a good thing. Now, my mission is how do I pursue this opportunity moving forward.
The fact that this property will be going to auction is where I have many question because I've never been to an auction and don't know how they operate.
My strategy for financing.
I work a full time job. I have a decent credit score. Down side, My cash is held up in my multi family properties that are being renovated.
My next step is probably going towards obtaining a Hard Money Loan.
I understand the hard money process because I've went through it before and for this property knowing the profitability in it, I have no problem with the points and high interest.
My question: because the property is going into auction does this mean; I have to come with cash? And if I want to purchase by using hard money. Is it possible to get pre approved for the funds to purchase this property?
If I'm totally off by this way of thinking, then I'm doing myself a solid by asking what should I do in this situation???
Strategy #2.
Going to the auction with a cash partner. If this is the only option for me, then I'm asking; what are the best strategies on attracting cash partners as soon as possible before this deal slips through the cracks???
Thank you all in advance for your consideration I'm looking forward to hearing your responses. I'm sorry in advance if this a ever lasting blog post. I'm just trying to be as detailed as possible.
Please share your knowledge.