When you are in the real estate business, it’s essential to know the basics of buying rental properties at auction. Rob and Gary discuss the process with our rental properties discussion group, the ATL ALL-In Community. There are both treacherous pitfalls and huge rewards to consider when bidding at auction for rental properties. If you’re looking at buying properties on the auction block, you’d better do your homework first!
Buying Rental Properties at Auction – Due Diligence
When Real Estate Investors consider buying rental properties at auction, they must perform their due diligence. Whether you physically look in the windows and interview neighbors, or just research previous sales prices online, you are doing just that. The more you know about the property before going into the auction, the better.
Members of our ATL ALL-In Community chimed in to share their experiences with bidding at property auctions. Steve was not serious about bidding on the auction. However, the seller required him to bring a cashier’s check in a specified amount in order to attend. The auction took place at the county courthouse, and he felt like it sold for much more than it was worth. Steve was just coming for the experience, so no worries from him.
Paula has experience with buying several rental properties at auction. She has done business with the public administrator, so she is often invited to sit in at auctions, even if she has no interest in buying. Paula has learned a lot just from observing auction sales take place.
Jake detailed his experience attempting to buy properties at auction in Phoenix. He went through a bidding service, which was a real hassle. The service was very aggressive, calling constantly to get his bids up. He ended up just giving them his absolute maximum bid, and insisting they not call again. He also detailed a very disturbing experience another buyer had involving a dead animal in the property basement.
Join Our Community for More Rental Properties Advice
Do you own multi-family rental properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL ALL-In Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!