YEs, sometimes we have to get OUT of the office, and get to the streets. It's the only way to stay in business. So, i'm happy to share. AND I want you to see it's not pretty..👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
The most important lesson here for newbies is to stick to the price that you're willing to pay or walk away. It hasn't happened to me. However, I've sold properties to emotional or undisciplined investors who lost money because they went against the data and overpayed. Also, if you're new, I'd suggest paying a home inspector to walk the property with you because there are very expensive issues like plumbing and foundation issues that can add $30k in unexpected costs. You need access to the inside and electrical for a full home inspection. However, a home inspector could give you some helpful feedback and arbitrary costs to help you make the most informed decision possible.
As an "arbitrager" for almost 30 years - I can give this # 1. TIP IF you are a long term ( involved constantly ) "arbitrager" - figure out a price that makes sense and never pay more - and walk away if someone else is unintelligent enough to be bidding more. There WILL be other "diamonds in the dirt" in the future. I personally do auction bids on only the "sky high" potential - meaning I am a "bottom of the barrel" bidder / buyer. Meaning I buy the pallets that go for $ 5-10-20. AND I love auctions that are not well attended - it is raining - cold etc . . and pallets have little understanding of even what is on it etc . .
As a contractor you are looking around 115-150k in renovation costs. Not sure what the other homes are selling for in there but you add your 50k to this it makes 50k. So to me the other homes in the area need to sell for well over 350-500k. I don’t see any money in this unless you plan on living here
If I had to guess they purchased so high because they are demolishing the entire house and building a new structure worth three or four times what they paid…I say this because I just lived through that twice on the right and left side of me. They bought the land on one side for $335,000 and built a home that sold for $1,715,000 The other home on the right was a partial demolition retaining the foundation and existing lower stone siding. The inside was gutted out and reconfigured. They added a new fabricated deck, roof and there was a pre-existing pool in the backyard. It is also a fenced in corner property. This home sold for $1,875,000 (Purchased by builder for $795,000) When I moved here the houses were worth $275,000…😱
Unfortunately, that home in that area isn't going to be worth 3-4 times. A lot of times these investors buy in areas that aren't worth their salt. My old neighborhood (close to this house) has TONS of homes in a lower price range than what they auctioned but they can't sell because it isn't worth it and potential buyers know it. I'll put money on this not selling and they'll be forced to rent it out for pennies on the dollar like surrounding neighborhoods.
Normally there is someone bidding on behalf of the lender. 1st, you better have cash and excellent credit. Due your due diligence about the city, community and just about everything you wouldn't expect.
Bro, I really appreciate you letting us see this process. It helped me a lot. Im not ready for this game yet. Gotta stick with my duplex rental for now. Thank you my guy.
80k for the remodel seems a little optimistic, don't you think? Looking at this walk through, seems like it would be more than that with everything that needs to be replaced
U did the right thing, you even got to see inside, which helps recalculate the numbers. Renovations are more expensive, since resale numbers are not what you expected, go to next project.👍🏽✌🏾🙏🏾💰
I agree. Maximum price no more than 50. If banks really are crashing then people wanting to buy this after the remodel may not be able to get financing.
They may not be buying it to flip. They can do a smaller renovation and turn it into a rental and still have equity. Also if they are a realtor they don't have to pay that side of the closing costs
the buyer of this property at that price will certainly regret it, his capital and time is all tied up and hopefully he breaks even after only 6 months. but that was a learning lesson for him im sure, if this deal dosent break him. thanks for the content.
you know, these guys keep buying, and I see them continue to move fwd. They must be doing something other than reselling it. IF he's holding, then it doesn't matter what the price is. He'll get his money back over time. That is a strategy that I can NOT afford to do at this moment. Thx for checking me out!!👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Not for me either, I put up all the cash for the reno so I need it back ASAP. But these cabins here in Gatlinburg do well on the over night rental market until it sells. They are rented about everyday.
📌 To the Wholesalers: buyers at auctions are some the best .. A ) oftentimes they will pay a little more than other investors B ) they make snap decisions quickly C ) they close quick D ) sometimes they may even buy your deal from pictures alone ..sight unseen .. because with auction properties they don't get to see them Hope this helps!
this is a great Question for our QOTD, we'll do it next week. Thx for participating👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Glad to have you on this crazy ride. Things get really crazy around here...👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Idk what these other investors are thinking 😂 no money here at all and the house most likely will cost close to $100k repair cost. By the time you're ready to sell after commission and closing cost, you'll end only having less than $40k profit? No way, I might as well make $$$ in wholesale.
No disrespect to the uniformed commentators above but both of you don’t have a clue about real estate investing. I met a real estate investor through a friend and we struck up a friendship , I learned so much from him and I am so grateful for his wisdom. I went to a H.U.D. auction to purchase a couple rentals and I used his knowledge to get a leg up on the competition. I inspected several properties and found 4 that had the most potential for profit. The auction was a hilarious example of Caveat Emptor , there were several realtors who had no scruples whatsoever. I saw person after person overbidding for properties just because they were REPOs . Because I had done cost analysis, carrying costs, and loan fees I knew what was profitable and what wasn’t. This is a real story not the fantasy stuff that you hear all over the net. I saw properties that I scratched off my list due to massive repairs , these buyers pushed by realtors overbid on several properties. I saw 3 of them a several months later right back into the H.U.D. program , I purchased one of them for 30 k less than what it sold for at the auction
Yo Yo, thx so much for your support my friend. If we can help you w/ anything, pls let us know and👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Good point, we usually go right over it not to disturb it. either way, costs have gone up so high, we have to build in all that on the buy. Which I have no IDEA how the buyer will do. BUT, he may be keeping it. 👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Ok, tell us the difference in ur county? Sounds interesting??👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Don’t worry people overpay at the ones I go to as well. I wonder if they even plan to make money on it. Often times I don’t think they even look at it and just bid until they win with no regard for profit.
Great Q, this will be one of our QOTD for next week. Thx for your support. 👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Those must’ve been newbies because that damn auctioneer had those plants in there running the bed up and that place was not worth $200,000 and it definitely won’t sell for 325,000
I would like to see the face of the buyer when he sees the inside of the house. I don’t care for auctions, people overpay. This person can only rent it out if they want to have some equity; they will have to use their money or at least some of their money for the renovation. Not a good deal.👎🏽
What is your opinion on this question. A lot of properties are also listed on Zillow, and offer pictures and details on the interior of the house. I'm wondering how reliable the pictures and details are ?.
I know you are asking him. But in my personal opinion. Anything that you don't see yourself with your own eyes. Is sight unseen. I do not trust, I verify.
Never and I mean never go off internet pics, some of the realtors/sellers are real creative with hiding defects. I see it alot, you have to walk the property.
This will be a good question for our QOTD this week. Thx for your input...👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Well ALL auctions have their issues. This is a private mortgage auction so there's no real gov't involvement. These things are pretty cut and dry, but you never know what's going on behind the scenes with this stuff too. Plus, all buyers have different goals so it can get really cloudy trying to guess what another buyer is doing. 👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
They bid $200k , plus closing costs, plus $100k in fixing up, to redo that electrical will require permits, plus once you tear down walls that always uncovers a bunch of oh shit!!!!!!!! ….. smart move man, walk away…. They will be in that house over $300k ….. NEXT
Yes way over priced, I have no clue how they’ll make money on that. This is why we NEVER base our offers on the next man👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
I’ve had to take a huge gulp of empathy doing this business. This type of thinking and situations will cause us to lose our minds. Even though I’m in therapy every week to deal with this stuff, it’s still bothering when I see my people suffer hard times. This power structure got us all sick, in some sort of way 👉Make sure you join our email list so you don't miss any exclusive trainings, events or Questions of the DAY: aw8d9fb.aweb.page/p/6cca7548-b8c4-4a7e-a6b6-9cdc9b706c48
Never buy these things unless you understand what you are doing. Usually it’s never the final cost as there are other liens and mechanical liens . DO Not buy it. Banks know how to play better than you.
@@miskittt 175 lol 300k property for 175 wat it sell for 40 k difference buddy should go buy properties in the hood you're laughing but The auction lol at him because he's not buying nothing bidding 1$ they don't even do that in Decatur Illinois the hood.lol
@@miskittt when buddy s off 40 k he wouldn't have went the 175 it he would have bidded it . flaky ass people wanna laugh at a idea 💡 but I'm laughing at u and Buddy bidded 1
I’ll never understand why people let their property go to crud. I fix most of what’s wrong . I call experts to fix replace major appliances. This house looks like a crack house. I wouldn’t buy this place for any amount of money. I can only imagine the smell.
$175k? Are you crazy or high? Are you allergic to making a profit and enjoy lighting money on fire? Putting up max bid numbers like that doesn't really make me trust you enough to watch your other videos. The reno on this is going to be at least $125k and I think it will be a lot higher than that.
