All Forum Posts by: Edith Acevedo
Edith Acevedo has started 1 posts and replied 5 times.
Post: why are auction property selling for market value?
- Posts 5
- Votes 2
Quote from @Victoria Pham:
I have seen those and I dont understand it either. My stance is that I have a standard and ways of calculating my deals that I don't want to be affected by anyone. Don't let those deals make you have a second thought on what is supposed to be a good deal. Good luck on the next one!
Thank you Victoria! I remind myself to stick with my numbers. It’s not an emotional play, it’s business.
Post: why are auction property selling for market value?
- Posts 5
- Votes 2
Quote from @Nathan Gesner:
Quote from @Edith Acevedo:
Because the market is crazy, and prices have increased 50% or more in the past few years. Investors are desperate to find "deals" and buying at auction feels like a deal, even if it's not.
I've been to auctions where people pay market price for a home that is clearly a fixer-upper, meaning they will be under water after renovation, even if they don't consider the cost of their own labor. People do the same thing at estate auctions, farm auctions, etc.
I struggle to understand that logic, because at that point buy off the MLS where at least you will have a proper and secure close.
There was a property at the auction that sold at market, however it had a federal tax lien of over 100k attached to it. What was sold at the auction was the mortgage lien. That meant the person who bought it also took that 100k debt (potentially). mind-boggling.
Post: why are auction property selling for market value?
- Posts 5
- Votes 2
Quote from @David Avery:
Egos get in the way.
Post: why are auction property selling for market value?
- Posts 5
- Votes 2
Quote from @Daniel Tanasa:
Hey Edith,
You're right, some investors are paying close market value for properties and it doesn't make any sense. Lately we saw some decent deals REO that usually are selling bellow market value. I understand you tried that and it was rejected but I think you just need to keep putting offers out there.
If you did some rehabs and some flips that's great, because it means you're not afraid to take on a project. There are still deals out there if you're willing to do a sizable renovation. The bigger the rehab the lower the competition usually. So I would still look at properties that need a lot of work on market and from wholesalers, and keep sending offers until something will get accepted.
Good luck finding your next one!
You’re right Daniel, the bigger the work the less competition. I’m comfortable taking on bigger rehabs. Like you said, I am going to continue to put in offers. I have to land something at one point.
Thank you!
Post: why are auction property selling for market value?
- Posts 5
- Votes 2
Hello,
I am looking for guidance. I have personally done 4 flips, one was a hold/rental that I eventually flipped and old, one was a house hack, and two I did out of market with HML(my first two were out of pocket) 1 I sold and 1 I held.
I have been trying buy at the Texas (Harris County, fort bend county) county auction and on some auction sites, in hopes I find a deal in the Houston area that I can flip or fix & hold. To my surprise, bidders are reaching market value and in some cases I even saw a bid go above market value. I have also placed cash offers on bank owned properties and have been denied or countered dollars under market value. at this point why not buy off MLS, closing with title, less risk.
any advice? I want to find deals I can rehab to hold or flip. I can't house hack, I'm a family of 5 with kids in school.
thank you!!