Should I try to buy my first property from auction or mls

Question

Hey I’m just starting out as real estate investor I was wondering would it be better to go to an foreclosure auction or find a house on an mls with an realtor first?

Elijah Henderson · Answer

@Reid Chauvin thank you, I was just making sure people have told me auctions are a good place to get investment homes

Elijah Henderson · Answer

@Brad Hammond okay thank you so

Much I appreciate the good advise

Reid Chauvin · Answer

I agree with @Brad Hammond. Going the MLS route and using traditional financing is going to be much easier and less risky for someone starting out. Work with a good realtor and mortgage lender, and utilize the experience to learn about what it takes to find a home, qualify for a mortgage to buy the home, qualify the home for the mortgage through the inspection and appraisal processes and the closing process, will help position you to successfully do things more independently in the future.

Brad Hammond · Answer

Hey @Elijah Henderson, for your first and second properties, I would recommend finding one off the MLS.  It will be a lot cleaner and you will have a lot of people looking over your shoulder to make sure everything is done correctly.  Once you have done a couple and have encountered a few roadblocks, then you can take on an off-market property.  These usually have some sort of issue with them that you will need to fix.  It could be that there is something physically wrong with the property or it has a clouded title.

That's not to say that you can't find a decent property off-market but they are highly sought after.  Also know that auctions are not the great deal they once were.