I went to my county courthouse today to register a dba and I found a bunch of homes going to auction in about 2 months. What bothered me was that when I looked up these homes one stood out to me. It was going into foreclosure for a judgement amount of $1.4 million. When I checked the comps they averaged 2.2 million. What strategies would you guys use on a house like this. Thank you.
If you can’t pay cash to purchase at the auction, then you can’t buy. Go to the auction as an observer to see how the auction is conducted and learn the auction process.
If you get the chance to network, introduce yourself to other investors who may be attending and learn from them. I found that most people were willing to freely share information after the auction was over and I am no longer their competitor.
Thank you dave for the advice. If I wanted to wholesale that house to someone that might be interested in that type of property, would it be to late since they have an auction date?
A sale will stop foreclosure, but unless you have a buyer with the cash to close already waiting in the wings or you have the cash/financing to close yourself, you may not have enough time to pull off a deal.
Obviously you are kinda new to this, so the best advice I can give is to do nothing with them. Take the time to learn real estate (about a year’s worth of reading, seminars and working as a birddog) and then jump in if it’s something you want to do.
You have better chances in winning lottery then flipping a million dollar property without experience and deep contacts…
Avoid big deals in the beginning… Only good thing about the current market is, newbies cant just sign there name anymore to get a home like they did in 2007…
team up with experienced investors to get your feet wet. try to obtain some capital from each deal until you can do deals on your own.
john
If you do intend on trying to put deals like that together you would be well advised to get yourself a website and start networking on a national scale for people who are interested in doing big money deals.
folks like that are still out there especially since the stock market has gone to hell in a hand basket.
just be sure to know what your talking about so that you don’t end up blowing relationships faster than you create them.
Good luck.
Thank you guys for all the feedback. I was really just curious to see what strategies you would use with the example I had. High priced house 2 months till auction with equity. What I ended up doing was getting a copy of all the lis pendens in my court house and sending a postcard offering my services Loan Modifications. Thank you