All Forum Posts by: Kevin Reid

Good day, I am wondering how do people buy homes at auction. I know that seems like a basic question, I guess I'm really wondering where the money comes from? 

I'm in Florida, and there are still many foreclosure auctions in my area, a few in my neighborhood. They all are cash only auctions, but the websites don't describe how they really work. I don't have the cash, but might be able to come up with a 10% down payment on the quick. I know a lot of these buyers are mortgaging these properties, I just can't figure out how. Thoughts?

Thanks Jay I'll search that out when I get a chance. 

I wanted to move my family to another home, rent ours out, then pick up a few smaller homes to rent in the area. I'm not sure I have the stomach for a lot of this, but we will see. 

Yes I do understand this, but I am not a skilled investor, won't pretend to be and I am still not yet recovered from the previous balloon. When I built our current home, which was supposed to be short term, it was mid 2007. From the time we signed the contract to closing the build price rose more then 15k for the same model and things looked great. Then 3 months later it all came crashing down as we all know. Here we are 9 years later and we are still near 30k below our build price. 

I know the homes I'm looking at are not worth what the current ask is, which is why I will not buy now because I think we will see another dip. I'm going to bide my time and see what happens as I've given up recouping our investment on our current home and will turn it into a rental once a better opportunity comes around.

I hope it gets too hot and burns out. So you think it will continue to grow? I know that in Florida the home prices have quickly outpaced the wages so I can't believe it will keep going as it has.

I had to table my plans a few years ago to do some small time investing, life got in the way, but now I'm thinking about it again. One thing that worries me is my current house never recovered from the recession, and we are still 30k under what we paid for it. Everyday I'm reading articles stating that another recession is coming and a housing collapse is all but a sure thing in the next year or so. Oddly I am hoping it does happen, as it will bring some rental properties down to my range since I will have some liquid cash to play with as a down payment. I can see why some say it's going to happen, because my in-laws house, basically a fancy trailer, just sold for well north of 200k in south Florida and in the height of the bubble before it was only worth 160k.

So are we headed towards a housing recession? Will we see a dip in values like before? I know you guys can't say for sure, but I'm wondering if there is a consensus on the issue.

Numbers do sound very enticing which is why I'm considering it. I contacted them and I have to be pre approved in order to see the inside, so I have to make some decisions in the next day or so. We have a baby on the way any day now so moving into the house would be difficult at best. I'm going to see if I can get pre approved for a zero down again, if I can do that and get an equity line after closing I think it will work out well.

Thanks again, they are willing to give me a code to the house, but I have to be pre approved first. Since this is the only property I am looking at I didn't want to go through all that until I made up my mind, but I may do it just for curiousity.

Can you tell me anything about the closing process and fees?

Thanks, from what I can see it looks like a killer investment. I can't seem to see what the reserve is, but they have a buy it now option that is about 70k below market value. I've just never dealt with anything like this.

I live in central Florida and a foreclosure has popped up right in my neighborhood. It's being auctioned on Hubzu.com (I started a separate thread asking about them). This auction has a reserve, also a buy it now price. The home is worth about 200-215k and the buy it now is 134k, so I'm guessing the reserve is around 125k. The home has been on the block for a while now but no one has hit the reserve.

The home was built at the same time mine was around 2007 and looks decent from the outside. I am trying to get access to look around inside and maybe do an inspection. From what I can see from the windows it seems the bank has kept the utilities and AC on, and aside from a carpet cleaning and some paint it is pretty clean.

All that being said I'm am thinking of picking it up to rent for a few years, then I'll upgrade the kitchen and flooring and move into it, and rent my current home, or sell it depending on how strong the market is and move on to the next investment.

Problem is that while I have awesome credit (820+) and work history, I only have maybe 5k cash I can use for the property, the rest needs to be mortgaged. Am I fooling myself or is this possible? How would you guys go about it? Thanks for any help!