auction to flip? - Posted by Jon

Real Estate Investing Auctions
1

Posted by RJ on June 03, 2006 at 08:41:08:

Contract.
Don’t know about NY. I am in Ga.
I got the spread minus my buyers closing costs.
House was vacant. Told the seller that I was going to sell.

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auction to flip? - Posted by Jon

Posted by Jon on June 01, 2006 at 08:23:22:

Hi guys-

I saw a couple of posts in the archives about auctioning off real estate that you have under contract. One of the resources mentioned was the “5 day flip” book, or something like that.

I found the website for the promoter of the book and it looks too good to be true, although apparently some people on this board have done it successfully.

Would somebody please fill in the details on how to make this work, particulary lender seasoning issues, bidder/buyer qualification, etc…?

I’m in NY and have not yet checked the laws regarding auctions. My understanding is that if I am a principle in the transaction, then it’s ok?

All help very appreciated!!

Jon

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Re: auction to flip? - Posted by RJ

Posted by RJ on June 01, 2006 at 17:42:17:

I bought the book. Its 19.95 It was a good read. I did two houses and one sold the other did not. Its alot of work. One thing about it is it does make a crowd when you do it.

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Re: auction to flip? - Posted by Jon

Posted by Jon on June 02, 2006 at 08:03:32:

Hi RJ,

Can you share some details of your experience with the 2 houses? Why do you think the 1 house didn’t sell? Was the money you made from the house that did sell worth the effort?

Thanks,
Jon

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Re: auction to flip? - Posted by RJ

Posted by RJ on June 02, 2006 at 12:39:55:

Sorry for the short reply. With one house I believe that I did not market it enough. The second house it was flooded with people. I did signs flyers ads in paper direct mail to neighborhood.

Everyone within a mile of that house new that I had a house for sale.

It was worth for me to sell. It was good money at the time. It is alot of work. Staging the property getting all marketing together.

I hope that helps.

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Re: auction to flip? - Posted by Jon

Posted by Jon on June 02, 2006 at 12:55:30:

Thanks RJ,

Good info. Can I pick your brain just a little more?

What paperwork did you use to tie up the property? (sales contract, option, etc…)

Is the auction sale method ok in New York?

How did you get paid by the seller? (flat fee, equity split, etc…)

How did you present the idea of a RR auction to the seller and how did they receive the idea?

Thanks again!
Jon