| Bank owned foreclosure Investing at a real estate | | | | has a clear title by having a title search done, and they |
| auction can be a great deal if you have done your | | | | can be costly. Also you will need up to ten percent of |
| research and know when to stop bidding. On the other | | | | the purchase price up front. Some minor nuisances are |
| hand, if you only half heartedly did the minimum | | | | foreclosure investing auctions being postponed or |
| research you could find yourself in a very bad situation | | | | delayed. |
| real fast. The way to purchase a property at auction | | | | By taking the time to learn the right way to evaluate a |
| is to be the highest bidder, the first time you attend an | | | | property and doing the proper research you can easily |
| auction you will realize how quick a process it really is | | | | avoid these pitfalls by learning from the mistakes of |
| and why you need to be prepared in advance. | | | | others. Read up on the subject and go to auctions just |
| If you intend to bid on a property at auction you will be | | | | to learn how things work. Foreclosure investing comes |
| competing with the lender and any other investors | | | | in many different forms, for some people they find the |
| interested in the property. Before the day of the | | | | easiest route to be buying REOs or Real Estate |
| auction, you have to find out as much as you can | | | | Owned by the bank. |
| about the properties history, any back taxes, | | | | REOs happen when the lender is forced to take a |
| environmental pollution, liens or easements against the | | | | property back in order to recoup it's losses due to the |
| property and repairs that may have to be made. All of | | | | borrower failing to make the payments. Banks are in |
| these expenses need to be added up and figured into | | | | the business of making loans and earning their money |
| the highest price your willing to bid and still make a | | | | through the interest paid back on the loan, so when a |
| profit. When you go to the foreclosure auction know | | | | bank forecloses on a property and takes back |
| the highest bid you can make and still make your profit | | | | ownership of a property they want to quickly get that |
| margin and stick to it, if the bid goes higher just walk | | | | property off their books and convert it into money that |
| away, this property will not be profitable for you. | | | | they can then make loans on and earn interest. |
| There are many advantages to buying property at | | | | One of the great advantages of foreclosure investing |
| auctions, if your looking for discounted property and | | | | with REOs is the lending institution is the lien holder, and |
| exercise some patience you can find bargain | | | | therefore you know you will have a clear title and that |
| properties ranging from a comfortable profit to very | | | | is a nice little money and time saving perk. I have heard |
| large profits. The average auction property will | | | | so many stories about the hapless investor who was |
| discount for thirty five to forty five off the market | | | | assured the title to the property was absolutely clear |
| value providing you the opportunity to make an | | | | and not to waste your time and money doing a title |
| outstanding profit on your original investment. | | | | search for nothing, only to be stuck with a property |
| There are also disadvantages to investment properties | | | | they have no clear title to. The only time you really |
| bought at auction, in my opinion the biggest drawback | | | | know you have a clear title to a property is when |
| is you can rarely do an on site inspection of the | | | | buying the property from the lien holder, or having a |
| property to evaluate the cost of repairs accurately. | | | | title search done. |
| Before bidding on a property you need to make sure it | | | | |