Are auction properties my best bet right now?

Are auction properties my best bet right now?

Las Vegas, NV · Member since 2015 · 3 posts · 0 votes

Hello all,

I'm posting here to ask for some advice regarding my specific situation. After living paycheck to paycheck for years, I received a small inheritance of around $25k, and would like to use that to start my real estate investing ventures. My end goal is to get into new constructions, however I'm not sure that my credit is currently good enough (<600), so my assumption is that my best bet would be to start with an auction property. That being said, my main question is would that be my best bet given my circumstances, and if so then where should I be looking (Las Vegas, where I live, doesn't seem to have good affordable options for me), and what specifics should I be looking for? I want to be able to purchase and fix up a property using no more than $20k of my own money and make at least $10k off of it within a few months' turnaround, rinse and repeat. 

I'm also planning on having a real estate LLC that I would use to be purchasing these properties, focusing more on using and building the business' credit and leaving my own personal credit out entirely. That would hopefully eventually enable me to reach my end goal somewhat faster.

I'm open to suggestions, I'm wanting to start making enough for this to be my full time job within the next few months. Thanks so much.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Joey Coffing:

    Hello all,

    I'm posting here to ask for some advice regarding my specific situation. After living paycheck to paycheck for years, I received a small inheritance of around $25k, and would like to use that to start my real estate investing ventures. My end goal is to get into new constructions, however I'm not sure that my credit is currently good enough (<600), so my assumption is that my best bet would be to start with an auction property. That being said, my main question is would that be my best bet given my circumstances, and if so then where should I be looking (Las Vegas, where I live, doesn't seem to have good affordable options for me), and what specifics should I be looking for? I want to be able to purchase and fix up a property using no more than $20k of my own money and make at least $10k off of it within a few months' turnaround, rinse and repeat. 

    I'm also planning on having a real estate LLC that I would use to be purchasing these properties, focusing more on using and building the business' credit and leaving my own personal credit out entirely. That would hopefully eventually enable me to reach my end goal somewhat faster.

    I'm open to suggestions, I'm wanting to start making enough for this to be my full time job within the next few months. Thanks so much.


    $25,000 may be enough to purchase a four-plex. Live in one unit, rent out the other three. You could qualify for a loan of around $400,000 and can purchase a multi-family in most of the country for that price. Of course, there are other factors involved like credit, income, etc.

    I recommend you work on fixing your credit before investing. Talk to a lender (or three) and they can give you ideas on how to improve your credit score. Get on a budget. Save. Learn more about real estate. Then hit it hard next year.

    The DIY Landlord Book4.7248 Reviews
  • Las Vegas, NV · Member since 2015 · 3 posts · 0 votes
    4y

    This wouldn't work for me. I'm unemployed, disabled, and don't qualify for disability. My husband makes too much, even though we are separated and I filed for divorce back in February. I don't have the ability to save until next year; the money I do have will be gone, which is why I need to start turning it into more money as soon as possible. Also, I have to stay in the area because of my doctors, and I can't afford multi-family in the area; I already looked into that. 

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