Trying not to get impatient with auctions....

[Tim Wittenborn]

Hey all,

Some history about us, my partner and I flipped a house that we bought as a HUD foreclosure. We profitted nearly 60k on this property and we are now sitting on roughly 110k in cash. Our goals were initially fix and flip, but after watching several bigger pockets podcasts, we both decided that the BRRR technique showed great promise. We are keeping our options open for whatever comes along.

We decided to start with auction properties, since here in the suburbs of Chicago it seems there is a huge shortage of ANY property selling for under market value, including REOs.  It took about 2 months to develop a system that works well:  Pulling auctions in our price range, comping out the ones that we think will work, driving to look at the properties, having a title company run title searches, etc.  Whittling 30 or so properties down to only a few.  We have been actively bidding on 1-3 properties a week for about 2 months now.

We have had a few close calls where i was only a thousand or a couple hundred dollars away from winning the property.  The properties we are interested in after due diligence always have a good amount of aggressive bidders.  All of this is good.  We know that we are doing the right things and bidding on the best properties.  My problem is that we are always outbid.  Sometimes it is a bull headed person that seems like they will bid up to ANY amount.  Sometimes it seems like it's a representative of a wholesaler who bids and wins several properties that day.  Sometimes it's an odd situation where 2 or 3 people take the property WAY outside of profitability range.  It's almost like the people outbidding us don't need to make a profit.  

I know I should not despair, but it's been nearly 5 months of paperwork since we sold our first house, and I'm getting antsy.  Any words of encouragement or advice is greatly appreciated.

Thanks BP!

Tim W