DogsWin
2004 and 2010-2011 BB&B Pick 'Em Contest Champion

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1. Know how to research title on the county clerks website to make sure no federal or tax liens remain
2. Make sure you are bidding on a first mortgage, not a secondary mortgage or mechanics lien. If you accidentally buy a secondary lien you are secondary in ownership and the sale of the first mortgage at auction wipes yours completely out losing your entire investment.
3. Learn how to appraise a property externally since you can't go inside.
4. Don't invest everything you have; you'll have to spend $5k-$20k changing carpet, painting inside, staining fence,... after the sale.
5. You make your money when you buy the property, not when you sell. If you pay too much up front you likely will never recoup the loss by selling at a higher price.