I was inspired by Dean's book. Very inspired. Currently, I am a real estate agent, so I do have some knowledge. But regarding buying auction properties and fixing them up...I know little.
Well, as you know, the market is rough for agents. My savings are almost completely gone. I have 3 k left and that is it. I am about to tap into my credit cards and I am freaked. No income and a small baby. Fabulous.
So, I found a very small property on the auction block. I doubt very much that it will be bid high on. So I might actually get the property. Starting bid is $1000 and I don't think it will go for more than $5k and that will be as high as I go. The property has been listed for the last several months with no warranties to its condition, in other words, "As-Is" for about $50k. And it is actually cute as punch, just very small. Only just over 400sf. Still, no one has purchased it.
What makes me nervous is if I buy it, fix it up as cheaply as I can, will I be able to sell it? If I sell it for the same price, I stand to make $35k around. Which would be great. But will I be able to? It had been sold, a few years back for around $90k which is unbelievable.
I will be doing the upgrades myself to save money. It already has a new roof, new boiler and new vinyl siding which is the clincher. The capital improvements have already been taken care of. But if it isn't selling now at such a low price, will I be able to sell it for $50k?
If I don't have a quick turn around, I'll be in big trouble. So, any thoughts? I know Dean's book says to face the fear. Well...I think my fear is winning the battle!! HELP! I NEED ENCOURAGEMENT!
Or a small loan. I'll take either.