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On this podcast episode I discuss bidding on online auction sites like Hubzu, Auction and Xome.
Online auction sites that list bank owned properties (REO’s), and short sales are an excellent resource to find good deals at wholesale prices. Many of these deals have enough profit potential for you to be able to wholesale the property to rehabbers or fix and flip the property yourself.
For example, I recently posted a video of myself standing in front of a house with a Hubzu sign. That house was purchased by a wholesaler and flipped to me (for a $10,000 profit to the wholesaler). I then fixed the house (which cost $25,000) and sold it a few days ago for $175,000 and netted a profit of $34,000. (See tomorrow’s episode of the checks and HUD’s from this deal).
So there was $44,000 of total profit in this deal. And it was on a free online auction site that you or anyone else could have bid on!.
Before you bid on online real estate auction sites, make sure you know how they work. They are all different and have different bidding requirements. For example presently Hubzu does not require a credit card to register (but they did 6 months ago). Auction and Xome both require a credit card. This difference is huge because what it means is that if you bid on a property on Xome or Auction, your credit card gets charged for $2,500.
Another issue on some of these sites is that they are feeding retail MLS listings into their sites (which are not wholesale deals). And watch out for the foreclosure trustee sales. These are not REO’s owned by the bank. They are properties being sold at the county court houses and you should not bid on these if you don’t have an attorney or title company running lien and title searches for you.
Listen to this podcast episode to learn more about bidding on online auction sites.
If you are brand new to real estate and want to learn more about how to fix and flip houses then please register for the free fixing and flipping houses training at this link:
