Are auctions a good way to start my REI journey ?

[Amy Hatcher]

I am on the precipice of my REI journey, and have been reading a lot about buying and rehabbing properties. My original thought was to get into "cheap" areas for immediate income, but I've since retracted that idea after extensive research. I'm very interested in buying nicer properties in nicer areas via auction, but have been told I'll likely be outbid immediately by pros who have unlimited budgets. Is there any hope for us little guys? I'd greatly appreciate any suggestions, advice, or even a little encouragement.

[Taylor L.]

Generally from what I see, the pros have mostly stepped back from the auctions because prices are bid up by less experienced new investors, who are willing to pay more because they are less able to judge risks. Little guys are more likely to overbid and get burned.

Go to a local real estate networking event and meet investors in your area. You'll find many who have bought properties at auctions in the past. Make some connections like that and you can get the inside scoop on auctions in your area!