We often see pages and pages of ads for auctions in newspapers. They are judicial sales, which allow you to buy a property at a price that is generally, although not always, (so be careful) lower than the market value.
To buy real estate at auction is one of the most popular and practical methods to buy a property at a discounted price.
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In this article I want to give you my 10 steps to successfully participate in estate auctions.
These are steps that I have learned from my own experience over the years and from hundreds of successfully concluded auctions. They are part of the information that I explain in my seminars Investing in Real Estate.
All the information that I explain in my seminars is based on my experience and not on theory.
10 rules for a successful participation in real estate auctions
I attended hundreds of auctions, before creating a specialized team of people who take care of this for me (if you want to become a real estate investor, you will need to do this as well).
This means that I have seen a lot and I can tell you one important thing: success in a real estate auction is primarily organization and attention to detail.
Consider that in my seminar Investing in Real Estate we talk about this information in a few hours with questions and answers.
With these 10 steps you have one scheme that has been tested in the field and can be used to start with.
1) Screening of offers to find the most commercial properties
On specialized portals, in magazines and newspapers
2) Evaluation of potential property
Find the current sales price of a comparable property
3) Evaluate the potential extra fees
Taxes, condo fees etc. Call the administrator.
4) Prepare the offer properly for the auction participation
Amount of checks, documents to be attached, and, believe me, customs of the special court.
5) Physical presentation of the participation offer
Where and When is it? Collect this essential specific information.
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6) Participation in the auction
Define in advance the maximum price to bid: when you’re there it’s easy to get caught up by the system and lose sight that you’re there to make money, not to acquire a property at any cost
7) Payment of the money due
Discover within what period and in what way. Usually between 30 and 60 days and with a bank transfer, but inform yourself.
8) Become an owner
Find out exactly when you become the owner permanently.
9) Delete mortgages and transcripts
Who clears the mortgages that burden your property? It can be the court or notary, this is very important information
10) Take possession of the property
Property is tied with or without a title? Is it rented? What does it say? Who does the eventual eviction? The bailiff?
These are the basic steps to start off on the right foot. Then it will be a matter of experience, luck, right timing, perseverance and also a team of organized people to handle all the details.
The advantage of real estate auctions are, in addition to the discount, the fact that the properties are handled directly by the judge.
The opportunities of auctions remains one of the best for those who want to create their financial freedom with real estate, and I suggest to you try this experience.
To your financial freedom,