Yes, you can create wealth with property auctions. Haven't you seen that show on TV where everyday folks buy a broken down homes for an excellent price? Of course they do the hard work themselves and put it on the market for a great profit. These individuals are bringing in all kinds of cash. You ask, why can't that be me making a killing flipping houses for huge profit? Maybe you don't know where to locate below market deals on property that need some TLC? Home auctions are a wonderful place to look for them.
Here's the 411 on it. Some poor guy looses their home to foreclosure or government seizure of some kind, be it for non-payment of their taxes or some legal problem. As soon as they've lost the Property it will be placed for auction to the bidder with the highest offer. Usually these houses can be baught at home auctions for 27% to 52% below market for their local areas, and regularly there are little if any bidders to compete with. All you do is meet the auction reserve price tag, which will be what ever the person selling it sets, and is most likely just what they need to get out of it so that they are not losing too much.
Consider it closely. The U.S. economy is in a very bad situation these days and foreclosure statistics are the highest we've seen in quite a while. Individuals who have been paying on their houses for years are quickly unable to do so at all. They're forefiting their property to the lenders. They have tons of equity in the home and the banks only need back what is outstanding. The large amount of equity is then given away at house auctions to the winning bid. Are you getting the picture now?
You'll find home auctions that are for properties that either need some renovations, or just some touch ups to make the house sellable. Purchase the home at an excellent low cost, say 38% lower than the market wil pay. Fix the property up for another 20% or so, then put it on the market at 10% below market value. You've just put a nice amount of that value into your bank account.
Now let's lets look at the real figures. Let us say the property is valued at $100K (and that's a conservative figure). Purchase it at a house auction for $60K and inject another $10K into it, for a total investment of $70K. List it on the market for $95K, which is 5 percent under market, and expect to sell it for $90K. You'll bring in $20K on the sale of the property! All folks can flip a home within a 1 month or 2. I'd say that's pretty good income.
Why aren't the guys and gals on Television purchasing their homes at house auctions? I really don't understand but I have a thought. These TV programs are only of such lengh and if they jump into home auctions that would take the whole show. That's just too much to chew. They want to show you the flashy stuff and pretty pictures.
The one thing I do know, is that a lot of rich real estate investors are purchasing houses at tax lien home auctions to either sell them quickly or to rent them off. Give it a shot, you can be a wealthy indivdual as well.
Author Resource:-
To learn how to buy tax liens, visit www.buytaxlienhome.com where you'll find everything you need to know about the Buy Tax Liens and much more.
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