Newbie to Forum: Do your homework before the Auction.

[Margie Story]

This was my first auction and I was really excited.  The property I bid on and eventually was awarded was purchased sight unseen. Upon visiting the property, I was horrified to learn that I had purchased a piece of land with a dilapidated house on it. Any suggestion on how I can maximize this boo-boo?  

[James C.]

Margie,

Figure out what makes the most financial sense and do it. Most likely it's don't put any more money into it and dump it as fast as you can. The loss is the cost of your real estate education. 

How much land is with the house?  If it's some acreage,  then you could lease it out to a farmer,  especially in the Dothan area (peanut capital of the world). Otherwise,  depending on how dilapidated the house is, repair and rent or sell, maybe with some owner financing. You could wholesale it with owner financing. My guess is that it will be a dump and run.

I'm also sure that you won't buy another auction property without checking it out first. 

Hope that helps. 

Good luck, 

Jim