All Forum Posts by: Justin LaTorre

Oops, I forgot to mention REO auctions specifically. So they do require the 5% on hand, right?

Hello BP!

I'm trying to wrap my head around an idea and I'm hoping you guys can help me out with some facts.  So my Dad is a general contractor working for a guy that flips houses in Florida.  This guy buys his properties at auctions.  My questions are this: What are the requirements to bid and purchase a property at auction?  I'm lead to believe that anyone can bid as long as they have 5% of the purchase price on hand at the time of the auction.  If this is true, can I apply for a conventional loan to purchase this as long as I have 20% of the loan as a down payment (my primary residence is bank financed so this one couldn't be considered my primary).  I know this doesn't cover the renovation costs but isn't realtyshares.com a pretty good place for that?  Any insight would be great! 

Thank you all for the feedback. I really appreciate it. @Larry Fried, I'm planning to use the 20K to buy a SFH near my area if possible but wouldn't shy away from looking outside my scope if the right opportunity was there. I would consider a multi unit property too if the cards fall that way.

Hello BP!!

First, I'm a long time lurker that has learned A LOT from this community. You guys are amazing people and I am looking forward to making new connections and seeking your guidance.

Here's a little about me and the direction I would like to start on:

I just purchased the home I plan to live in for many years to come while I grow my family and my real estate portfolio. I have the ability to pull loans out against my retirement and I am currently awaiting one to be paid off so I can take out another, which should be around 20K. I know it isn't much but I am confident I can use that 20K as a down payment on a house that I would like to make my first rental property (buy and hold). I've been doing a lot of research on crowdfunding (realtyshares.com) and plan to touch base with my Closing Agent (although I think my debt to income ratio is too high for that route) just to broaden my options. My long term goal is to acquire cash flowing properties via the BRRRR strategy.

Am I making the right moves to get started towards my goal?  Any insight would be great.