Wholesaling Auction Properties

[Sarah Jordan]

I am brand new to REI and have been watching the auction properties. I found one that seems to have a very high resale value for the relatively small starting bid price. It was built in 2019, and from the looks of the pictures, shouldn't need too much rehab if any. What are my first steps to knowing if this is a good deal and finding a buyer? If it goes to auction before I can get in touch with the buyer, is it too late?

Thanks in advance!

[Wayne Brooks]

@Sarah Jordan Well, “starting bids” are deceptive and irrelevant. Yes, once it goes to auction, it is no longer available.

[Chris Seveney]

@Sarah Jordan

You will need a significant amount of cash typically to get it out of auction as you would need to buy the home cash as typically not even time to get a deal done before foreclosure

[John Slater]

Quote from @Sarah Jordan:

I am brand new to REI and have been watching the auction properties. I found one that seems to have a very high resale value for the relatively small starting bid price. It was built in 2019, and from the looks of the pictures, shouldn't need too much rehab if any. What are my first steps to knowing if this is a good deal and finding a buyer? If it goes to auction before I can get in touch with the buyer, is it too late?

Thanks in advance!

Hi Sarah, I would start by focusing on trying to connect with the owners before auction stage.  In california you can't wholesale auction properties as funds are required immediately at the bid.  Being the winner means paying up there and then.  I'm assuming Tennessee is different ?

[Adrienne Green]

@Sarah Jordan you may want to be aware of a recent court decision that effectively outlaws wholesaling in TN unless you have a real estate license.  Here are the details: https://tnrealtors.com/2023/06...

[Ky Logue]

The only way to find out if its a good deal is to talk to the owner. I focus on getting deals in preforeclosure before they go to auction.

[Ky Logue]

Quote from @Adrienne Green:

@Sarah Jordan you may want to be aware of a recent court decision that effectively outlaws wholesaling in TN unless you have a real estate license.  Here are the details: https://tnrealtors.com/2023/06...

 I read the article you posted, where does it say Wholesaling is outlawed? 

[Adrienne Green]

@Ky Logue the first line states: Selling property that you do not own in exchange for valuable consideration requires a Real Estate Brokers License in Tennessee.

[Don Konipol]

Quote from @Ky Logue:

Quote from @Adrienne Green:

@Sarah Jordan you may want to be aware of a recent court decision that effectively outlaws wholesaling in TN unless you have a real estate license.  Here are the details: https://tnrealtors.com/2023/06...

 I read the article you posted, where does it say Wholesaling is outlawed? 

Wholesaling is NOT outlawed.  You just need to be licensed

[Crystal Smith]

Quote from @Sarah Jordan:

I am brand new to REI and have been watching the auction properties. I found one that seems to have a very high resale value for the relatively small starting bid price. It was built in 2019, and from the looks of the pictures, shouldn't need too much rehab if any. What are my first steps to knowing if this is a good deal and finding a buyer? If it goes to auction before I can get in touch with the buyer, is it too late?

Thanks in advance!

Your first step is to control the property; i.e. win the auction. You can't sell to a buyer if you do not control the property.