Am I delusional???? (Read Details, Please)?
Long story short, I was researching foreclosure homes and found some that the starting bid for some of them strated at 150k for a 500k house. Assuming I win the bid and that I got lucky and nothing was wrong with the house (including no taxes owed). I told my my mom that I might do that when I have money and she told me I was delusional because where the heck am I going to get any thing near that in this life time. I have my Master's in Business and I do ok financially, but I just don't think that's alot of money considering I saved 1/4 of that within this last year. Am I delusional for thinking that 150k is NOT a lot of money for a 30 something year old???And also, am I delusional thinking that I could make some cash selling houses???? ( I have a Master's in Marketing and do ok,)
- SlumlordLv 75 months agoFavorite Answer
Lots of people do very well buying foreclosure houses but you are still delusional for thinking you are getting a house worth 500k for 150k. That may be the starting bid on the house but either the competition will bid the place up to 350k-400k (if its really worth 500k) or if you win the bid at 150k the seller will simply say they won't accept anything below 350k or whatever.
You can certainly make good money doing this (maybe you could get that 500k house for a great price and then after closing costs and fixup and everything else maybe you'd pocket a great deal of money, possibly 100k (on a deal this size) but to think you will get a house really worth 500k for 150k means you are probably a sheep to be sheared, not a brilliant real estate investor about to make tons of money doing this.
Still, best luck. Learn lots, take it slow and work hard and maybe you could do fine doing this.
- 5 months ago
The house is not going to sell for the starting bid, especially if nothing is wrong with it.
- StephenWeinsteinLv 75 months ago
You are not delusional thinking that you could save 150k. You are delusional thinking that there will be nothing wrong with the house.
- Casey YLv 75 months ago
Something confusing about the phrase "Starting Bid." There are hundreds, if not thousands, of house flippers out there. If they see value, they will bid on it. They will continue to bid to the point they don't think they can turn an adequate profit.
I bet that $500k house goes for at least double the starting bid...
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- realtor.sailorLv 75 months ago
First get yourself pre qualified for a mortgage. It does two things, it shows you the maximum amount of mortgage you qualify for and the seller will want to see it when you submit a bid. Next find a good Realtor to help you. It doesn't cost you a thing to retain a Realtor. Only bid on the homes that qualify for financing and offer an inspection/refund period. Some do and some don't. Have your Realtor prepare a CMA - comparative market analysis. This shows you what similar homes have sold for. I've seen bids go over the market value.Source(s): I sell bank owned homes.
- Anonymous5 months ago
Sounds like mom is the one that's delusional.
- MaxiLv 75 months ago
Your mothers knows you better than anyone on here..........
- SumDudeLv 75 months ago
You are delusional for thinking there will be nothing wrong with the house. You also do not know how much reconstruction/fix-up work costs. But you can certainly try ....
- SCATTY cLv 55 months ago
Like Anon says, a STARTING BID means nothing. It does NOT mean that the house would sell for that... If the house is worth 500k, even paying 400k plus would be a bargain to someone.
- Anonymous5 months ago
Starting bid is meaningless. I know car auctioneers who happily take lowball bids because it gets many more bidders interested. I used to try an opposite strategy. Id start maybe a few hundred less than the max I would pay to hopefully dissuade other bidders. (or make them think the auctioneer did not have real money and was just fishing for bids) The risk there is you might have gotten the car cheaper. But, no way of knowing for sure.