How To Buy Property At Auction

How To Buy Property At Auction


Welcome back my friend. Today, we’re going to
be talking about buying property from the auction. I bought thousands of
property from the auction and I know exactly how it works. So today, I’m going to
help you understand what the options are how that system works, how properties get
to be there and how you can get your hands on a fantastic deal. So things have to have a way of getting
rid of their bad properties. It doesn’t mean that the property is bad. It just
means that they sold it’s someone that didn’t take care of it the way that it
needed to. And now the property is a problem. And the bigger problem isn’t the
bank owning it. It’s how it’s affecting the banks ratios. It’s keeping them from
actually lending out more money with the way fractionalized banking works. Banks, I
never really thought in what I’ve experienced is, I don’t think they’re
very intelligent about the way that they sell off properties. Because often they
can get a lot more money than they sell things for. But they’re not really in the
business of real estate. They’re in the business of lending. They’re in the
business of lending money. And so, when they have an asset that doesn’t work,
they just want to dump it. And one of the best ways to dump it is that auction. So,
let’s actually break this down a little bit here. First of all, what a property
goes to auction, every county across the United States works differently on their
auctions. Sometimes these auctions will only give you 24 hours. They’ll publish
their list one day before they’re going to sell them. And that’s how much time you
have. In one of the markets I was in, we always had 24 hours to race and see
hundreds of homes before the auction the next morning. And why would you actually
want to see the property before you actually bid on it at the auction? That’s
because a property sight-unseen can have several problems. You see if you can
get in the property, you can get a concept of what it’s going to cost to fix
it up. You can figure out, “Does it need appliances? Does it need new flooring? You
know, does it need a paint job?” And if you know those things in advance then you
can base your bid on that. So, a property is worth $150,000. And at the auction, they’re selling it for $150,000. You’re like, “This is a great deal. I kept getting it for a third off, It’s
worth 150, I can get it for 100?” Yeah, but if you got in the property and saw there
was structural damage and that you have to lift one side of the house and do
this and this, you might be like, “Dude, it’s got $40,000 worth of repairs. I
would never buy that property. Why would I buy a property that is worth 150 that
I can buy for 100. And it needs $40,000 to fix it up?” But if you also go to the
auctions, you might find a property that, hey everyone else only had one-day’s
notice. I got in the property, I looked through the windows and you know what I
found out? I found out that it’s just cosmetic paint and carpet maybe 5-6
grand. And the property’s worth 150 and I can buy it for 100, That’s all the sudden
a really great deal. Because now you know that you need very little put into it. So,
with the time that they give you before the auction, you’ve got to find a way to
check out the property. And basically, figure out what my highest and best bid
is going to be. Because as everyone else is bidding, you ought to make sure that
you’re in fact only buying a property that goes up to your standard. If it goes
beyond because there’s a bidding war going on, trust me you’re not going to want
that property. Some of the pros of using auctions that you can get really good
deal. The con is that you might not get a good deal or you might feel rushed or
pressured into a deal that frankly, you shouldn’t get. You should make sure that
you can check out the property enough to ensure that it’s a good deal if you’re
going to actually bid on it. Now, by the way, this is a good strategy is this a
strategy that I use. It’s a fantastic strategy and I do use it. I actually
think that of 17 different strategies that my acquisitions team uses for
finding deals, next to the MLS, this is probably one of the most prevalent
strategies. So, you’ve got to know your math, you got to know your numbers.
Another one of the downsides however of auctions is that if you win the auction,
guess what happens? They want money. And when? Some auctions actually want their
money literally on the spot immediately due upon winning the earnings. Sometimes
you get $40. So you can actually send a wire out. So, I think that’s the other
thing to be aware of. Auctions is also going to require to be hands-on.
That’s another downside. In my playbook, but if you have teams competent teams
that you trust, that it can also work totally in your favor. At the end of the
day, auctions are super viable. Here’s what you need. It’s one thing. It’s
mentorship. There are just too many little things that can go wrong in real
estate without having someone that can really have your back. So, one of the
things that I advise for everyone is you’ve got to have a mentor. And I do
know that sometimes mentors can be super expensive which is why I created a
coaching hotline. Basically it’s the exact same team of experts that are
transacting all of my real estate. I’ve got a group of them that are available
by phones so that when you’re out there doing real estate, they can actually
answer your questions and help you succeed as well. In fact, there’s a lot of
you here that will actually watch my channel because it’s free. It’s powerful
free step-by-step mentoring in real estate. But guess what? YouTube doesn’t
back very easy. That’s why I created the coaching hotline so that when you’re
trying to implement what I’m sharing, you’ve got coaches that will spend as
much time as you want going through the answers until you’re
satisfied and understand step-by-step exactly what you need to be doing, And so,
don’t go into real estate without a mentor. That lone wolf syndrome that so
many people have is actually why they end up losing. It’s because they didn’t
have sufficient experience or wisdom or couldn’t crunch the numbers or they just
didn’t know what they didn’t know. I’ll never forget one of my mentors that paid
a million dollars to. The most valuable lesson that he taught me, he said, “Kris,
the most dangerous information to use what you don’t know.” And in real estate,
it’s really true. I don’t want to scare you. You just need to make sure that you
have someone on your side that’s actually there and helping you figure
out how to do this intelligently. Whether that’s hiring a mentor for $10,000 or $30,000 or using my hotline for a few bucks a month.
It’s probably the most inexpensive form of with hyper qualified people that I’m
aware of out there that can help you succeed at this. Bottom line is that it’s
here, it’s available to help you win, rock it out and absolutely crush it and
succeed. If auctions are right for you and if you’re ready to go out there. Or
if you’re ready to try a different strategy. And you’re just like, “Dude, it’s
time to take action. I just want to make sure I do it the right way.” I want you to
at least know that you have a resource here. Click the link below and I’ve got
my team on standby. You guys have asked for it. And I’m finally giving it to you.
So, you got the real estate hands-on help that you’re looking for without making
huge financial commitments. Take advantage of the team. They’re brilliant
experts. They’re really good at what they do and they can give you the guidance
that you want. For the rest of you, thank you so much for watching today. Listen,
make sure that you are a subscriber that you ring that bell. Every day I’ve got a
brand new video. And I create all of these videos for free as a training
program for you to help you get the real estate training and expertise that
you’re looking for. Thank you so much. Take care, we’ll see you tomorrow.

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8 Replies to “How To Buy Property At Auction”

  1. I watch all your videos because your so knowledgeable and passionate about real estate I smile every time you smile😂

  2. Such an on time video bro. I'm about to do my first auction on Sept 18th in Broward County and I'm so nervous but this made me feel some relief about the mentorship.

  3. Thanks Kris. I am inspired to get ready in game of Real Estate
    But I don't know whether I should do it in the UK or US. And what what course to study at university linked to real estate. I need some advice please.

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