| If you are in the real estate business, then you might | | | | However, if you do not reach an agreement over the |
| already know that the cheapest place to buy the best | | | | rates with the other party you can always go for the |
| property is the real estate foreclosure auction. You | | | | bidding. The bidding, mortgage and foreclosure laws |
| can actually get the property for peanuts. This is a | | | | vary from state to state, so you would have to do a |
| very profitable strategy for professional real estate | | | | bit of research in this area. |
| agencies. | | | | If you know all the provisions regarding the whole |
| Background Research | | | | process then it will be a lot easier for you to win the |
| You should have a fair knowledge of the market if | | | | bid, by providing you an intellectual advantage over the |
| you want to get the best deals. You have the option | | | | other bidders. |
| to subscribe to periodic e-newsletters. | | | | What Should I Bid? |
| If you do not have enough knowledge about the local | | | | You should never bid anything that is greater than 20 |
| market then you might get yourself into some trouble, | | | | % of the actual value of the property that is being |
| as you might later find out that the realty rates were | | | | auctioned. The estimated actual value can be found |
| already too low in that area. | | | | out from the property evaluation reports. |
| First of all you need to prioritize your market and then | | | | It is a standard practice to have a look at the property |
| remain in touch with the current affairs for quite some | | | | before you bid on it. You can also hire the services of |
| time. After that you should start bidding in auctions. | | | | a professional inspector, if you want. |
| Bidding Etiquette | | | | In some states the laws require you to make one |
| You can do some smart business and deal directly | | | | hundred percent down payment in case you win the |
| with the owner of the realty before it is put up on | | | | bid. |
| auction. Actually this is totally ethical and more | | | | So, as I said before, you will have to study the laws of |
| profitable for you. The mortgage lenders also like this | | | | foreclosure in detail. This is very important otherwise |
| as it becomes a lot easier for them, rather than | | | | you will be stunned if you would be asked to make the |
| organizing and managing an auction. | | | | full payment at the auction site. |