Need Advice on Buying Homes at Auction
My partner and I are looking to get started in investing in Fix N Flips. I've been looking into buying homes at Auction. I was wondering if any of you with experience in this can tell me if what I learned so far is correct? 1. Get a Title search done 2. Bid on the property that is being foreclosed on by 1st lien holder because it wipes clean all the loans taken after that one. Unless 1st loan is very small and I bid on second lien holder foreclosure because numbers still look profitable. 3. If owner occupied either work a deal with tenant to move them out or evict them? I'm not sure about this particular situation. I've also read that they will move out once foreclosure is finished. ???4. What about back taxes? They come up on title search as a lien? Unless property is being sold as free and clear?I appreciate any feedback on this. Thank you
Most Popular Reply
That is the hardest, riskiest way to do real estate. You don't get to inspect the property before you buy. It belongs to the homeowner until it is sold, so anything you do on the property is trespassing. The homeowner can file bankruptcy right before the sale and stop the sale. Some homeowners are ornery and have guns to protect what is theirs. And on and on.
Better idea: find a wholesaler that can provide you with a great deal on a house you can inspect and one that you can get a title report.
Best Idea: Find a homeowner "off market" that doesn't have the means or desire to fix up a property and do owner financing until you sell the flip.