Hi, I am new to real estate investing, I am just trying to get started. I have purchased one property, 11 acres at a tax forclosure sale, for 700$ I sold it for 6000$ a few weeks later. So I liked it and now I am trying to get into some bigger stuff…I been watching our local sheriff sale while I study and try to learn the ropes, a house came up that I knew was a great deal, problem is I dont know enough to know how to get the money to buy the house, it is in an middle to upperclass neighborhood, 3 br 2 bath brick house on the river…very desirable in this town. The lot beside it is for sale by a realtor…2 AC…asking price is 600,000$ for an empty lot. I did some comparables in the neighborhood and nothing has sold for less than 120,000$ this year.
The house is going to be auctioned off the 24th of next month…the starting bid is 56,000$…I did some homework on it and found is sold in 1998 for 127,500$ and its appraisel is 114,630$ that was done in 2004 the appraisels seem to be super low in the government web site for our area, but it could be like that in all areas, I dont know yet, but I will learn.
I think this could be a really good deal, if I knew enough about investing I would know what to do to get it purchased, so anyway I am wondering if you all could point me in the right direction.
I dont know anyone that will invest their money into it besides my son, who is 19 with no previous credit history, but he is willing to go to a mortgage broker or a bank and see what we can do together both of us have ok credit but my income to debt ratio is not so great.
So I joined this site a few days ago and now I found this section and I thought I would ask for some help…thanks so much for reading. Any advice would be wonderful!
Sheila
Financing and Sheriff sales do not match. You must have cash available the same day of bidding.
In Florida, You must have 5% of your bid amount in certified funds to start. They will verify this at the sale. Then if you are the successful bidder, you must have the remaining balance in certified funds by 5 pm the same day.
Not trying to sound negative, but these sales are not for the novice. I see individuals bidding all the time, that have not done the proper homework. You can loose your shirt if not careful. A lot of research should be done before hand.
The other problem is you can do all this ground work… check and double check the property, verify the fix up work, verify title, etc. Go to the sale all ready and somebody steps up and outbids you. It can be a lot of work/expense for not.
I always suggest to people who tell me they are going to start bidding at the courthouse steps to go for a week or so and watch. You’ll start to get the idea. Not to mention, you’ll start to notice the same faces. IMO, one of the best ways to get started.
I am new to all of this. How do you learn of the upcoming sales?
The easiest way for me is the country clerk of the court website. There are also different newspapers that print them. Depends on your area.
REO
Thanks for the input…I am kinda in the dark about all this so I didnt really know if there was anyway to to get it done, seems like there sure is alot I dont know…but this site is amazing…so much info to take in. I am learning alot, I have orderd a few books and CDs, I read alot so I will learn fast.
We have one sheriff sale here that the properties are supposed to be already free and clear when they hit the paper, I have never been to that sale, but its on the list to check into it. I found some sheriff sales by just typing in sheriff sale in my search bar.
Thanks again for the input.
Sheila
I am new to Real Estate investing too and came across this article which pertains to sheriffs sales
http://www.foreclosuremba.com/ec_2_tru.php
That is all a state by state issue Here In Co You need to have 100% of the money with you to bid on anything.
Excellent article. Thanks for posting.
Good point. Know your local rules.
I’m in Connecticut. We don’t have a county government. We have City of ___ or Town of ___ governments or the state. Also, every square inch of real estate is in an incorporated town.
Any other states out there like this?
Hey,
This site www.foreclosureassistance.com will give you the info for your states foreclosure process as will as give you sale procedure which will often include which day of the month.
Peace,
Richard
<<I’m in Connecticut. We don’t have a county government. We have City of ___ or Town of ___ governments or the state. Also, every square inch of real estate is in an incorporated town. >>
Most of New England, New York, etc. is like this…I’m originally from Mass. and that’s the way it is there, too…there is a county and a county “government” but it wields little authority in anything real. In Virginia, the county is “large and in-charge”…there are only a few incorporated cities in the whole state. Here in Louisiana, the parish governments are pretty strong as far as taxes, etc.
Keith
Great site!! Thanks so much!
thanks for all the great info everyone!!
this is a great site ;D