Auctions Without Bidding

Posted on March 26, 2013 by

One way to invest at auctions is to not bid at all. This sounds crazy, but hear me out… First, you must attend a few of the auctions in the counties you would like to invest. Secondly, identify the winners and/or the regulars. These are the bidders/ buyers you want to speak with, get to know, and begin doing business with. If you have ever prepared for an auction correctly you know it is a time consuming and tedious process.

Once you have developed a working relationship with these individuals you may begin to ask if they are open to selling you some of their winning bid properties. Keep in mind that they have invested plenty of time and resources into these acquisitions. For this reason they have earned and need to be properly compensated. Each property will be different so do not agree to a flat fee but rather give them your buying criteria and a proof of funds or letter of intent. For example, many investors look to be at 65% LTV all in including repairs while other investors look for 15% ROI. No matter what the criteria, make sure that you are very clear in what you will buy. The last thing you want to occur is that they bid and win a property with the intention to sell to you and you are not interested in purchasing it. This may happen but it should be rare or for a reason out of your control. However, if this does happen, make sure that you assist as best you can in liquidating that property if they do not want it. By doing this, you remain in their good graces and free their capital to be invested again at the following auction.

Some of you may think that by doing this you may be paying more but what you have to consider here is time. Could you ever be in two places at once? How about three or four places at once? Well, of course, the answer is, NO! But you can have people in multiple places acting on your behalf. Atlanta has many counties in very close proximity of one another. Over time you could potentially have a buyer/bidder in each county bidding on your behalf. This will give you a hand full of investment properties month after month.

This is one of my favorite methods because I enjoy leveraging my money as much as I enjoy leveraging my time. Best of all its a win-win because they end up selling properties for a quick profit and you end up with another investment property.

Michael VazquezMichael Vazquez has been offering properties to real estate investors significantly below market value since 2006 in both Texas and Georgia. Michael taken on projects starting with just 4 brick walls (literally) to managing his own rental portfolio. When it comes to investing in real estate he has done much more than many twice his age. Michael is always looking to for more investors to work with.

Contact Michael Vazquez

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