$73,000 cash. We used every penny we had to buy our first property. And what a property it was! When we bought it, it was in such bad shape, that we couldn’t get anyone to insure it. We had one insurance rep drive by the property, look at the falling down garage, smile kindly, and drive away…
We bought our first investment property through Hubzu. Hubzu is an online real estate auction website. Though it’s been ten years since we bought the property, I recommend Hubzu for the ease and speed of purchase. We had very little difficulty in the transaction. We used a realtor for our first purchase, but I feel confident that the average buyer can pursue the transaction independently. Do be aware that many of their properties are “As Is,” so go into Hubzu knowing that you are taking significant risk. (We have also attempted to purchase a flipper home through Auction.com as well as a hotel via Ten-x See the following links for more information on each of those experiences. )
Going back to our first property…With our agent, we toured the property. However, Hubzu does offer “Self-showings.” This is a great way to independently see a property you may be interested in. I also recommend reading Hubzu’s FAQ website before making any offers.
We had been to a number of in-person property auctions in Illinois and Wisconsin. Those were exciting events, but we didn’t pull the trigger until we saw our dream property in rural Wisconsin. The 1800s shiner had been converted from a large home into three apartments. It was in terrible shape.
Regarding costs, I find Hubzu to be very reasonable. Hubzu does offer some minor fees such as a technology fee and a transfer fee. In addition, I recommend bidding slightly above the asking price and make a cash offer. That is exactly what we did. We believe this made a quick deal out of our negotations and avoided lengthy back and forth with other bidders. Explore your options!
