Auctionrealestatesales
Auction Real Estate Sales

Whether you are an investor that would like to get into buying foreclosed homes for your personal use or to flip the property or if you are having your home foreclosed on, you should know what to expect at a foreclosure auction. Of course, the actual steps that will be taken can vary a bit from state to state and from house to house, but its good to know what you will be getting into when you go to a foreclosure auction. Foreclosure auctions can be exciting, even fun, but knowing what to expect will help you make the most of the experience, whether you are an investor or a homeowner that is trying to get your house back.

Before the Auction

Youll likely find out about the foreclosure auction in a local newspaper and on the flier may be information to pre-qualify for bidding. This will allow you to put down a deposit so that the auctioneer knows that you are a serious bidder and can fulfill your bid if you are the winning bidder. Being pre-qualified just sort of speeds up the process so that you dont have to mess around with the deposit on the day of the auction. During this time you should also do some research on the house by looking into any liens that may be against the property, how much the property is worth, how much it has appreciated in the last few years, as well as property values in the area. If the home looks as though it will need some repairs, you should consider this as well when trying to come up with how much you will be willing to pay for the house. Without this research, no amount of knowledge about what goes on at a foreclosure option will help you because you wont know where to start when it comes to actually making a good bid.

What Happens At the Auction

The auction will typically start with the auctioneer reading legal notices as well as a legal description of the property. The auctioneer will usually then begin taking bids on the property. If the auctioneer has pre-qualified bidders the process is more streamlined, if not, each time a bid is made the auctioneer will then ask for the bidders deposit check, which is typically right around 5,000 for residential auctions. After each bid the auctioneer will attempt to solicit bids for higher amounts. Each auction is different, but the auction increments usually are set by the auctioneer and may be by 100, 500, or 1,000 per bid. The auctioneer will continue to solicit bids by this increment until it is clear that the highest bid has been reached. Then, the auctioneer will announce, Going once, going twice, three times, sold! indicating that the auction is over and the property has been sold to the highest bidder.

Once the bidding has ended a foreclosure deed and purchase papers will be drawn up and validated by the new owner or purchaser and the mortgage holder. A grace will likely be given to allow the purchaser to find financing or to come up with the funds to cover the full amount of the bid. This grace period is usually 30 days unless the purchaser and the mortgage holder agree to other terms. After the grace period a closing will take place, so that the new owner can formally take the title to the property.

What Happens, Now?

The purchaser can do what he or she intended to do with the property, whether it is to move into the home or to sell it for full market value. The money paid by the purchaser will be distributed in order of priority, first of which would be taxes. After taxes money will be paid to the mortgage, then the second and third mortgage if applicable. If there is still money after paying these debts, remaining money will be paid to lien holders and creditors. There is a very slim chance that there will be money left over after all of the debts are paid, if this is the case then the monies will be paid to the former home owner.

What about the Original Owner?

The original owner will often be at the auction so that they can bid on their home, and this is legal as long as they have the deposit required. If the owner of the home that has been foreclosed does bid on the home they must remember that the deposit is not refundable and the deposit assumes that they will be able to finance the home within the grace period. Owners must also remember that if they buy the property back old debts may merge and become reinstated such as second and third mortgages that became void when the first mortgage foreclosed on the property unless one has filed bankruptcy and is truly free and clear of these debts. Owners will often drum up the funds to make the deposit so that they can have another 30 days to try to save their home. Owners may or may not be successful in their attempts to save their home at a foreclosure auction.

As you can see, there are a lot of things that go into a foreclosure auction, but none of them are all that difficult to understand, but knowing about them makes the auction more enjoyable. The auction itself is not all that complicated, but it can be very fast paced. At some foreclosure auctions there are a lot of people, at others there are only a few because of the location or just the debts attached to the property, or even the state of the property. If you are serious about the property you should pay close attention when bidding starts so that you are sure that you can get your bid in when you feel its time so that you have the best chance of being the top bidder.

In dollars and cents, it means that its not at all unheard of for an investor to purchase a 350,000 home for under 200,000 during an economic recession. The value of the property has fallen so far and the homeowner is so far behind on their financial obligations that they are willing to let the property go for a song just to dodge the stigma of bankruptcy or foreclosure that would otherwise be lingering over their heads.
After the investor has the property in his hands he has a choice. He can either choose to turn right around and sell it to a rehabber or private homeowner. He can hold on to it, rehab it himself and rent it out (since affordable rental property will be highly in demand in the face of the rapidly failing housing market, with hundreds of families ousted from their homes and left to find another place to live), or simply sit and hold on to it.
As an investor during an economic recession its vitally important that you understand the basic framework of a recession. THE RECESSION IS NOT GOING TO LAST FOREVER! Sooner or later the economy is going to start getting back to normal, and when it does the value on your investment is going to rise back up. That 200,000 home is suddenly going to sell for 350,000 again-more if it happens to be in an area that sees a tremendous boom as a result of the ending depression.
That means that if you can afford to do it, the best thing you can do at this point is play a waiting game. You know the value of your property is only going to rise, and if you rehab it while youre waiting you can watch the value rise even more. Lets take that 350,000 house and use it for an example again. Lets assume for a moment that the house is sitting on a lightly wooded lot with a big backyard an easy commute away from a major, booming industrial area.
Lets also assume that the industrial area saw a major boom as a result of the ending recession, and that because of that boom property values in the area were jerked back up. That house that was worth 350,000 and sold for 200,000 is suddenly worth 400,000; however, while they were waiting for the end of the recession the homeowner also took the opportunity to rehab the property, doing some landscaping, adding a pool and a spa room and installing all new plumbing and appliances.
Suddenly that property that the investor bought for 200,000 and invested 40,000 to fix up is worth over 500,000. Even with the additional 40,000 investment for the rehabilitation the real estate purchaser is going to walk away with a tidy 100,000 in their pocket-more than many executives make in two years, and all because they were clever enough to take advantage of an opportunity when one presented itself on the back of an economic recession.
If youre looking for a way to take advantage of the recession and you have the time and the money to do it, I strongly recommend real estate. The good thing about real estate is that if you know the ins and outs of the business you can enjoy a return from this career whether you choose to think in the short term or the long term-although, for the sake of this book, Im going to encourage you to put at least a little bit of thought into the long term.
Remember, long term when youre talking about an economic recession isnt the same as when youre talking about the long term anywhere else. A recession usually lasts less than a year. A years worth of stockpiling for a lifetimes worth of profit. Hmmm

Real estate is a tried and tested asset class and the majority of people agree that as a long term investment commodity there is nothing really to beat it for consistently returning strong growth and increasing yieldshowever, when a country’s housing market goes temporarily cold as real estate prices move outside of the affordability gap, real estate investors often look overseas for the development of their property based portfolio.

Currently the real estate markets in countries such as the UK and US are slow and the ability to profit from property locally is reduced – therefore more people than ever are thinking about moving their focus abroad and starting an overseas real estate portfolio to enable them to build a passive income for life.

If you would like to learn more about building a passive income for life from investing in overseas real estate here are the main five considerations to bear in mind to maximize profit, reduce risk, increase yields and capitalize on opportunities as they present themselves but before we begin it is always prudent to mention that the value of any investment can always go down as well as up, and that investment decisions should be taken carefully and be made with the assistance of qualified and experienced advisors.

Tip One – Real estate markets around the world emerge, boom, go bust and re-emerge all over again, but they do so at very different points in time as each market is heavily dependent on the current state of the economy in the given country. As we all know economies ebb and flow like the tide and there is no such thing as a guaranteed market where property prices will keep rising. However, there are countries in the world going through major economic change where the real estate market is emerging and where the long term forecast is for a period of prolonged growth. An investor who is not risk averse and who is planning an overseas real estate portfolio should try and identify which countries have a strengthening economy and an emerging real estate market.

Tip Two – Having found an emerging market an investor needs to determine the key factor that makes an investment into real estate in the given country a good decision. I.e., if a country’s property market is simply booming because of hype and an investor can see nothing to support the long term success of the market then they should walk away. If an investor can see massive room for growth but an interfering government who may attempt to restrict property investors from taking their profits then an investor has to decide whether or not they can still make enough profit from real estate to make any investment worthwhile.

Tip Three – Having determined that there is potential within a given market an investor needs to learn how to harness the power of other people’s money! As real estate is an expensive and slow to liquidise commodity it is unwise to pay cash from personal funds for an investment property, rather it’s wise to raise finance at a low interest rate from a secure financial institution. An investor should look into whether an international mortgage or a local mortgage is possible and affordable when buying overseas real estate.

Tip Four – As previously stated, over the long term real estate is considered by many to be one of the most consistently returning asset classes the key to this consistent success is however the ‘long term’ bit! I.e., when buying real estate abroad for capital growth and rental yield it pays to be able to keep that real estate for ten years or more to ensure the greatest reward is derived from the investment.

Tip Five – And finally, having determined that the key factors exist to suggest that a property market has legs to run and that any hype surrounding its progress is based on fundamentally accurate facts as detailed in Tip Two, an investor need to ensure they buy real estate that will suit the market demand that is making the real estate market successful! Therefore if the baby boomers are driving a given market consider buying single level properties in secure communities, if on the other hand the young professionals are driving the market think about purchasing well located, designed and facilitated apartments.

Wholesaling in real estate is an entire business in itself and generates super-fast profits, usually without ever acquiring the title on the property. It’s not uncommon to pick up a check at closing, with the seller and buyer present at the same time. Many times I have earned thousands of pounds within two or three days of finding a deal. Successful people in the wholesale business are accomplished at locating good deals and marketing them – primarily to people who are in the rehabbing and retailing business. The first purchaser is willing to take a smaller, fast profit and leave the larger profit to an investor with the time and money to buy, repair, and sit on the house until it’s sold.

Some people are making a good income by buying and then reselling immediately only once or twice a month. These deals require no money, no credit, and no bosses. Believe me, if you locate a deal, someone is waiting to buy it from you.

Finding bargains for bargain hunters is the easiest and quickest way I know to pick up a check for at least 5000. The whole process shouldn’t take more than 15 to 20 days from the beginning to the end. Following are some tips for wholesaling:

1. Don’t pay too much. Remember, you’re selling to bargain hunters. Leave them plenty of room to make a profit or you won’t find a buyer. That means they should net at least 20 percent of the sales price after all expenses.

2. Your only exit is to sell for all cash quickly. Make sure your buyers can get the cash and aren’t relying on bank financing. Don’t allow buyers to learn banks won’t finance junkers at your expense. If a buyer can’t close in 15 days or less, find another buyer.

3. Use an assignment of contract and let your closing agent collect your fee.

There’s really not that much to learn about wholesaling. It’s an easy real estate business. Many people are doing one to ten deals a month and netting a decent earning. Some make more on one wholesale deal than most people make in a year on their job.

Ages ago, people lived in elaborate and magnificent castles that were often protected by moats. A moat is a wide, deep ditch dug around a castle to prevent enemies from overtaking the castle. By surrounding the castle with water, moats served as an effective deterrent and provided the castle with the security it needed to prosper.

Today, many of us live in our own plain and simple financial castles that are much more vulnerable than the castles of yesterday. Not only do our financial castles not have any sort of moat for financial security, many real estate investors do not know how to build a moat to accumulate wealth and retain it.

Why do most people today not have a financial moat? Why no financial security? Why are most people so financially vulnerable? We live in a culture that has brainwashed us into thinking that we should be paid per hour of work.

If you are like most people, you have to work for a living. If you don’t work, you don’t get paid. You see, most people have linear income. So while linear income may be the way most people earn their paychecks, it is also the reason many of us cannot afford to retire. This type of income continues only as long as you continue to work.

1. If you are an attorney, you get paid whenever you represent a client. If you don’t provide legal services, you don’t get paid.
2. If you are a teacher, you get paid when you teach our children. If you decide not to teach, you dont get paid.
3. If you wholesale or retail houses, you get paid when you flip a house to another investor or sell it to an owner occupant. If you quit wholesaling or retailing houses, you don’t get paid.

The real test is that if you are let go by your employer as I was in June 2002, your income definitely stops. After almost 30 years of working for security for different companies, I was left out in the cold in the middle of summer. I discovered I was not secure; I only had the illusion of security. Working for a company is fine, but you must understand it will never give you security.

That’s how linear income works. You receive income when you work. Usually you earn just enough income to pay your bills. When your income stops, youre on the brink of disaster. In fact, if youre like most folks, youre no more than two or three paydays away from a serious financial catastrophe.

OK, so how do we start to build the moat that will provide us with financial security?

You start digging a ditch around your financial castle with residual income. A complete change happens when you start earning residual income. Residual income means you continue to earn money for a long time. When you do something right just one time, you get paid over and over again for what you did.
a. If you write a hit song, you get a small royalty every time the song plays on the radio.
b. If you write a book that becomes a best seller, you receive a regular royalty check from your book sales.
c. If youre already a multi-millionaire and had a few million to invest in quality stocks and bonds, you now get a regular dividend check.

Residual income sounds nice, doesn’t it? Unfortunately, most people have trouble developing a residual income.

Why?

We can’t sing or write music. We don’t know the first thing about writing a book, much less how to go about having it published. And I really cant remember the last time someone came up to me and told me they had a few million pounds sitting in their checking account waiting to be invested.

However, there is hope.

There is another way to develop residual income. Theres a way to get monthly checks so that we can do the things we want in life. So that we can achieve our dreams. And best of all, almost anyone can develop this residual income that will give you the financial moat you need to accumulate and retain your wealth.

It was only after my wife asked me how many properties I had kept for ourselves at the end of 2004 that I realized that my buy and sell plan was making us very good money, but it would not make us wealthy. I realized I had to keep buying and selling properties to keep making the money. So I launched a strategy that complemented our buy and sell strategy. The approach is to buy properties at substantial discounts, rehab the properties, and then rent them out. And the best part is that the tenants pay for my properties. Once the properties are paid for, I will continue to have rental income for the rest of my life.

But what about tenants and toilets, you ask. Well, everything has a price and youll have problems with your tenants. But you have options. You can (a) develop a system to minimize your problems with tenants, (b) retain a realty management company to deal with the tenants or, (c) offer seller financing to your tenants so they become owners and they no longer call you.

Personally, I like the buy and hold strategy for two principal reasons. First, I continue to accumulate assets or rental properties. Second, I will continue to receive residual income for the rest of my life whether I continue to rent the properties or elect to use a seller financing approach so I deal with a buyerowner and not a tenant.

The more properties you accumulate, the more residual income you receive. And the more residual income you get, the wider and deeper the financial moat you will build for yourself. The wider and deeper your financial moat, the more difficult it will be for circumstances to penetrate your financial castle. You will have the security you need to truly prosper.

How can one be a successful investor in Tampa real estate? If you want to try out investing in Tampa real estate, you have to be prepared and armed before you enter such venture.

Yes, it is true that there are lots of investors out there who are successful and have earn so much in real estate investing. If you desire to be one of them, thats okay, but it is not as simple as buying a property in Tampa real estate.

If you want to be successful, you have to take it slowly but surely. You have to prepare yourself but knowing how real estate investing works and know the methods and strategies that can aid you to success.

Actually, there are lots of ways to learn about real estate investing. You can use the internet in finding knowledge and information about real estate investing. There are plenty of websites out there that can provide you with strategies, tips and guidelines that can help you in making real estate investing. Just make sure to take some of your time in educating yourself. You can also enroll yourself to university that offers about real estate investing. Reading books about real estate investing is another option of learning and preparing yourself before you enter Tampa real estate investing.

Knowing and gaining information about Tampa real estate market is very helpful on your part. You have to take time in knowing the market.

Tampa real estate investing comes with a lot of work; so definitely, you cant do the work alone. You need to have the persons that can aid you with your quests of having the best transactions and to obtain success.

There are plenty of works to be done like dealing with the finances, looking for the right properties in Tampa real estate, selling your properties, maintaining your properties, dealing with the paperwork such as contacts, and dealing with the profitability. Now, you see how many the works should be done, so you need to have the right team that can help you out in having the best transactions and to gain success with your Tampa real estate investing.

A mortgage broker can aid you in having the best loans you need. A real estate agent can deal with looking for properties and selling them again. A lawyer will deal with paperwork and the accountant will deal with the profitability. So you need to hire the persons that can deal with the job but do not hire just that, you have to have the assurance that they are the right persons. The right persons have the proper expertise, experiences, skills, abilities and very much familiar with Tampa real estate and have the knowledge about real estate strategies.

In order to gain success in Tampa real estate investing, you have to be prepared and armed and do the right things that should be done. Take your time and effort and never rush things out.