Since starting our company Magnolia Properties of Raleigh, we’ve learned a lot. And, the biggest lesson we’ve learned is that nothing is for sure.
After months of research and preparation, we felt ready to bid on our first house. Time to flip!
We found a house in an established neighborhood off Atlantic Avenue. Perfect size and a price we could manage. It was vacant so we didn’t have to worry about eviction.
The house was being sold at an online auction through Auction.com. In advance of the auction date, we submitted our registration and credit card, committing us to a 5% deposit if we won the auction.
The auction lasted three days, and, during the last hour, we watched the bid amounts rise to exceed the minimum bid. (Most online auctions have a minimum bid in order for the house to sell.) During the last 60 nerve-wracking seconds, we placed our bid for $90,000. Going once, going twice…we won!!
We immediately received a phone call from the auction company confirming our win. Within 24 hours we completed the paperwork including proof of funds, and we wired our 5% deposit. We couldn’t wait to get our hands on the house to make it beautiful.
Unfortunately, a few days later, we received a call from Auction.com that the auction was cancelled. What?! How does this happen? Yep, the house had been previously sold in a live auction months before. It wasn’t meant to be.
Chalk it up to a learning experience. Now let’s find another property.