The Making Of A Millionaire – How To Benefit From Public Real Estate Auctions
You eat an elephant one bite at a time.
Often, having a clear vision and the courage to start working towards an opportunity is what stands between man and his or her ultimate goal. With a little bit of study and appetite for some risk, the goal may in fact be closer than one might think.
The first order of business is to spot the opportunity. The next order of business is to remove anyone from sight who’s job seems to discourage us from moving forward. This is frequently the reason why most people freeze. In his famous The Law of Success in 16 Lessons book, the success bible, Napoleon Hill specifically discusses how you must keep your chief aim shielded from others who are likely to challenge or resist it. Even your spouse. Take this as law in achieving the success that you want, even though it is contrary to all the modern guru teachings that you must publish your goals far and wide so you may be more committed to achieving them.
In real estate, an opportunity of a lifetime came to those who saw a buying window when everyone ran the other way in 2008, 2009 and even up until last year. Those who made the move and acquired as much property as they could, boarded or not, with spouse approval or not, are on a different plane now. We all know where these investments stand today. Up some 20-25 percent in the past year alone, in many states and cities across the US. They hopped on the Web and onto online auction sites to grab REO auctions, government real estate auctions, residential real estate auctions, commercial real estate auctions, you name it. Some flipped them right away while others rehabbed and held the assets for rental income with high annual cash on cash returns unlike we’ve seen for decades.
The biggest complaint circling the sector today is lack of inventory, especially distressed assets. Whether that’s in Detroit, Las Vegas or any other market.
The next time I come across a hot deal in Detroit or otherwise, boarded or not, shabby or not, I’m jumping on it. That’s just what I did earlier today, when opportunity presented itself. I bid on five residential properties in Detroit on ListedBy.com, going for just tens or mere hundreds of dollars to anyone willing to take on just a few thousand dollars of back dues taxes. A great deal if you ask me. At worst, the land will always be there for me or my kids to farm someday. Each will have their profiting strategy. Some will resell the assets immediately for a bit of profit, taxes still unpaid. Others will hold till values increase, then sell at that time, still passing due taxes to the next investor. Yet others might pay due taxes in order to obtain title insurance, rehab the properties and rent them for regular cash flow. That is, if the neighborhood and overall conditions are adequate, an insurance provider is willing to provide the service in the area, and the risk of another round of vandalism of the property has been well considered. Risks are out there and professional advice and due diligence on any investment is always necessary.
But first I must win those bids. Some astute investors seem to have spotted the same properties. Until then, I’ll keep scouting the site for more. Here great deals still do come by.
I also like it here not just because of my obvious bias towards ListedBy, but because I also don’t need to pay registration and technology fees like on most other auction sites. Nor do I have to contend with buyer premiums like most everywhere else. Here it’s all free. So each bite I take at my goal, goes further. In English? More dollars in my pocket to go towards buying more assets (with or without spousal approval), instead of handing them to the auctioneer.
There you have it. That’s one of my paths. I’m pulling ahead in the game of real estate just one small bite at a time, until the elephant is in the bag.