very informational thread. I'am also in the real estate investment side of it. I purchase properties at trustee sales auction , fix and sell them but its not as simple as it sounds. most people think you got to auction buy a house, work on it the next day and put it out on the market in a few weeks, the way they show on TV.
sometimes it could be a long process and a bit of a gamble. it can be a real gamble because there are no (zero) warranties as to what you are buying. at auction you are pretty much buying the deed of trust from the bank and you really have to do some homework or can end up paying big bucks for a piece of paper.
example you go to auction because there is a said property going up for sale.
you show up, fight the rest of the bidders , you get the winning bid, pay for it in full there and then ( you have to show proof of funds in cashier checks in order to bid) they collect as soon as you get winning bid. so you think you bought your self a piece of the rock, but some time later you find out you have bought a 2nd deed of trust or 3rd with the 1st going on sale tomorrow which in turn will completely wipe yours out. so you get NADA but a huge headache.
on the other side of the coin do your homework and you can get some good deals at trustee sales auction. sometimes you can get about 30% to 40% profit from initial investment in about 6 months. so flipping can still get you some money its just not a walk in the park and a bit of a gamble in a lot of aspects.
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