Four Tips On Buying Real Estate At Auction In Orlando | Written by Eugene Hoffman

Tips On Buying Real Estate At Auction In Orlando – 4 Tips To Help You Do It Right

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Yes, the foreclosure rate has come down, but now in 2016 more people are late on their mortgage payment.

Looking to acquire a property at an auction? That can be a fun (and potentially profitable!) way to acquire properties but it can also be fraught with danger if you’re not a careful. Make sure you read these 4 tips to help you do it right…

The secret to most real estate investing is to buy at an attractive price and then either rent for cash flow or sell at a higher price. And one place to buy attractively-priced properties is at the auction… if you do it right. Unfortunately, many brand new investors swoop into the auctions and end up spending too much. If you want to avoid this “newbie” mistake, make sure you read these 4 tips to help you do it right.

Tips On Buying Real Estate At Auction In Orlando #1 — Research

If the auction posts information about each property before the auction, take the time to do your research and determine the value and potential return of the property. Can you rent it out? Can you flip it profitably? Can you improve the value? Will you earn a return on your investment? Spend the time to do your research and figure out how much you can make from the property, which will inform you about how much you can pay. Set a firm limit and don’t over that limit for each property.

Typically, auction houses fail to deliver a “warranty deed” after you pay cash for the house. Sometimes the property will have a lien against the title. If there is a lien still attached to the investment the buyer will be responsible for finding a way to remove it. It may cost you a large sum of money. There have been times a person bought a house from an HOA and the original first mortgage is still attached.

Tips On Buying Real Estate At Auction In Orlando #2 – Find Hidden Gems

An auction is an open, unfiltered market, which means that you’ll be up against other people who may have done their research and want the real estate for the same reasons you do. This can result in properties being bid up to a very high price. The way around this is to dig deep in your research to find the hidden gems… the ones that people might not bid on but that YOU know are really valuable.

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