Real Estate Auctions: The New Trend in Real Estate

You’re walking by a street and you see a huge crowd gathered in the lawn of a plush property, replete with a magnificent home. You wonder what the noise is all about and also what are all these men in suits and ties doing there on a sunny afternoon. You can feel the energy in the air as everyone gathered there holds and releases their breath at the same time. Then you see a man seated right at the front facing the crowd and he proclaims loudly, “SOLD!”

It then dawns on you that a public auction has just occurred, selling that magnificent property to the highest bidder. Now, you probably seem interested in the game too; however, you need to have a depth of knowledge in the field of real estate investing and real estate auctions before you step into the turf.

When Does a Real Estate Auction Occur?
That’s one question that you are bound to ask especially because you may wonder, why not use personal selling or put up an ad in the newspaper to sell property and do it without much hassle of a public auction?

Real Estate Auctions occurs in the following scenarios:

1. When Government land and property needs to be sold

2. When an abandoned property has been sitting still for a long period of time

3. When a land owner’s property is seized from him due to a judgment passed in the court of law

4. When the owner of the property is unable to repay his loan, the pending loan amount is recovered by auctioning off his property

5. When joint tenants of a property disagree on the property partition, the property is auctioned off and the money is equally divided.

Each of the scenarios mentioned above determine the rate at which the real estate property will be sold for. For example, a foreclosed property, that is when property gets taken away from the owner who is unable to repay his loans, is usually much less than the market value of the property, because the opening bid is a sum total of the pending loan amount, interest accrued and legal fees involved in the process. However, it is also possible that, if the loan amount is much higher that the value of the property, the property will be sold for a rate that is higher than the marker value.

In the other scenarios, the opening bid begins with the market value of the property.

The Benefits of Real Estate Auctions

For the buyer, the biggest benefit is that the price of purchase is decided by you. Also, foreclosures are a good investment because of lower purchase prices. The process of a public auction is fair, competitive and gives every buyer the equal opportunity to participate in it.

Since the public auction is open to all and takes places in full view of the public, a prospective buyer does not have to be worried about being cheated by the seller in any aspect such as not handling over the papers on time, or delaying the possession of the property.

For the seller, disposing off a property through real estate auctions is quick, there is no negotiation involved and he/she also saves the time and money involved in marketing and advertising of the property.

For both the buyer and the seller, real estate auctions save a lot of time as the process is quick and usually the property is sold within minutes.


When You Don’t Win a Real Estate Public Auction
Real Estate Public Auctions are like a race; while one is bound the win, the others will lose. The best way to handle loss is to keep emotions at bay because the excitement can overwhelm you and lead you to bid an amount that you possibly cannot afford. Therefore, the best way to handle such a situation is coming prepared for the auction by deciding on a minimum and maximum bid.

When You Win a Real Estate Public Auction
Winning a real estate auction is quite good news because you have earned yourself a good investment and you can now use the property either for yourself or to re-sell it when the market price increases or either put it up for rent. Either way, you are bound to benefit from your purchase.

When the auction is closed at your bid and you complete the necessary paper work after making your final payment, the property then comes to belong to you.

The uncertainty mixed with the fact that you are in charge of the purchase/selling price makes real estate auctionsthrilling. Therefore, you are either bound to strike a good deal, or none at all, making it a no loss no gain situation.

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An Insight into Real Estate Investment Tips

Investing in real estate is by far the most profitable one amongst all investment options says real estate expert Jeff Adams. It can be done by buying an apartment, a condominium, a bungalow or plots of land at strategic places.

These properties can be bought for self occupation/use, for letting out on rent or plainly holding them as investments and selling them when the returns reach the expected levels.

Unlike manufactured goods, or even gold and precious metals, the supply of land has always remained a static phenomenon.  As Mark Twain summed it up aptly, “They are not producing it (land) any longer.”

The demand for land and good housing properties has always been increasing, thus spiralling steep rise in property prices far exceeding the inflationary pressures on currencies. This is the prime reason for ordinary investors to put in their hard-earned money, saved out of much sacrifices, into land or housing property for decent returns beyond the wealth eroding power of inflation.

Housing Loans
Land and housing properties cost a lot in comparison to the disposable income earning capacity of the fixed income category of small investors.  It is neither feasible nor advisable for them to wait till they accumulate enough resources to invest into real estate, by which time property costs further escalate.

Fortunately, various types of home loans are available to small investors against the mortgage of such property after providing a down payment of about 10% to 20% of the cost of property.  These home loans basically fall into following categories:

Fixed Rate Mortgages where the interest rates remain constant. These are also known as conventional mortgage loans and offer a good option in a market scenario when the interest rates are considerably low.

Adjustable Rate Mortgages where interest rates are adjusted throughout the term of the loan. Here, as the name suggests, interest rates vary with the money market.

Hybrid Loans: These are required to be paid back within the stipulated period, but the payments can made either on a regular basis or adjusted to fit into the overall time period. These loans combine the aspects of both the fixed and floating rates of interest.

Transferable Mortgage Loans:  These loans can be transferred from the current owner to the new buyer. The new buyer will have to pay the owner the down payment and the installments paid for transfer of the mortgage loan.

FHA Home Loans:  These are insured by the Federal Housing Administration of the United States.

VA Home Loans:  These are guaranteed by the Veterans’ Administration of the United States and are issued to American veterans or to their spouses.

The Economic Cycles and the Interest Rates
One important factor to be considered while going for home loans to buy real estate property is the changing economic scenario and corresponding changes in the interest rate cycles.

During recessionary periods the industries and the businesses begin to grind slowly, the employment opportunities diminish and unemployment rises, the money supply with the ordinary public becomes scarce, the demand for investments is low and, hence, the interest rates fall correspondingly.  Contrary is the case when the economy of a nation is on the upswing.

The real estate market is most affected during recessionary times.  The defaults on mortgages become common, foreclosures or confiscation of the property by the lenders for defaulted loans, increase.  The recessionary periods, however, do not last too long.

But, because of an overall feeling of doom, an ordinary investor feels clueless when the good times will return.  This is the time when hedge funds swoop in like raven. Therefore, a small investor needs to exercise daring combined with shrewdness and caution at such times.

Hedge Funds
These funds possess massive capital and their motive to enter real estate market is to reap quick profits.  They have the technology and information to sniff opportunities.  Once identified a prospective market, they strike with their full financial muscle and buy properties en-bloc, even at premium prices, edging out all other small players.

Their game is to sell it off with equal haste when the demand picks up, pocket hefty profits and move on to other pastures. Their limitations do not allow them to block money for long on dud investments.

Hedge funds constitute the money pooled in by high net worth real estate investors, expressly for making quick profits.  Unlike the mutual funds, who deal with public money, the hedge fund managers are not much restricted in their investment decisions.  The federal regulations, however, have imposed certain lower limits on participating investors so that small investors might not get swept away by the greed and thus, sometimes, get totally wiped out in this risky squabble of big boys.

The arrival of hedge funds is a sure sign of the onset of spring after a long winter. The shrewd small investor can circumvent the game by riding on the back of these hedge fund sharks. The small investor need not get discouraged by sudden upshot in prices after a long period of lull.  The investor can buy any available piece of good property by paying a small premium price.

The increasing trend in prices is sure to add more worth to the property’s value.  The small investor can also go for adjoining pieces of good property and hold them a little longer than the inherent limitations of hedge funds in order to make good money.

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Real Estate Investing: “It’s a Man’s World?”

Time and time again, we have all heard it before, the old saying, “It’s a man’s world.”  But these days, you have to ask yourself the question, “Is it really still only a man’s world?”  As the economy is evolving and technology is improving, so are the roles of women in the work force and the in business arena.  Women are increasingly taking a more active role both on their careers and their finances.  The number of women CEOs is consistently growing.  Thirty percent of the CEOs in non-profit organizations are female and there is an increasing number of women CEOs in other fields including health care, legal services, finance, and real estate.

Strong females are taking a more dominant role in business, politics, and finances.  The old cliché of it being a man’s world that we live in will be just a memory sooner than later.  It is a common misconception and also an overused excuse that females are not as good with finances and/or investing as their male counterparts.  For these reasons, women are often less confident with their skills in making investments and achieving financial freedom.

Fear is also a factor when considering making an investment or purchasing property.  This fear factor often deters women from wrestling with the investment animal.  Women seem to shy away from the “risk” of investing because they fear they will lose their money or become financially unstable.

In more recent years there has been a general progression of empowerment in regards to women.   The roles of women in society are changing and so are their levels of confidence and fear.  A heightened level of confidence and lower level of fear combined with other key ingredients such the major advances in technology, internet opportunities, and greater knowledge of the business and real estate industries is an inevitable recipe for success for the women who are willing to delve into these arenas.

More and more people are turning to real estate due to the instability of corporate America or just because they want a piece of the action.  Real estate investing, as with any business venture always involves risk.  This risk should not dishearten anyone looking to invest.  Getting started is probably the most difficult task of all.  Anyone hungry enough to jump into the real estate market should form a personal real estate strategy, which is based on how much time and money he/she is really willing to spend.

Doing your homework is key for any savvy investor.  As mentioned before, the internet is an excellent resource for gaining knowledge on the real estate market.  There are much more opportunities for women in real estate than there have ever been before.  Real estate investment clubs are available that offer women the education, networking opportunities, and contacts that are essential to achieving success.  For example, the National Real Estate Investment Association (NREIA) has over forty thousand members and two hundred REIA chapters nationwide. These clubs offer women the ability to put their finger on the pulse of the market and allows them to receive up to date information on not only the real estate market but also the law.

Other organizations that offer insight via the information super highway include MeetUp.com, where women share information with other women and Wisewomeninvestor.com which offers free financial information on a variety of topics and also hosts a blog talk radio show.  Also, the National Association of Women Business Owners (NAWBO), which offers a general business perspective is a good resource.   Learning and working with other women provides a great benefit and advantage to females in the market.

In addition to acquiring knowledge through the internet, women can also learn do-it-yourself basics from local hardware stores that offer such courses.  Knowing these basics can only be beneficial when seeking to purchase a home or property.  Knowledge is power, and the more you know about housing essentials such as plumbing, construction, flooring, and electrical wiring, the better.  Not to mention, that it would be more cost effective and could save you money in the long run.

Once a strategy is in place and knowledge and research about the market has been done, taking action is the next step.

Women are naturally the more relationship oriented of the sexes.  As nurturers, they have a tendency to establish relationships more easily than men.  This can be used to their advantage, as building and maintaining relationships is critical whether it be personal or in business.

In order to move forward with taking action, you must begin by deciding what type of financing will be incorporated in the investment.  There are a variety of methods available to the investor.  The traditional method of financing involves getting financed through banks, credit unions, or home mortgage companies.  It also usually requires about ten percent of the purchase price as a down payment and a credit score of about six hundred eighty.

Jeff Adams Real Estate Investing: Why Wholesaling?

The business of wholesaling is not just a trend in the real estate market. It is progressively gaining momentum and popularity with both new and old investors in the market. Investing is foreclosures offers quick deals for quick profits. The basic idea is get in, get out, and get paid.

Because it offers many advantages to the wholesaler, this type of investment is very attractive. No license is needed so just about anyone can do it, it involves a quick turn around time, and it gives the investor more personal time. Investing in properties that have been foreclosed upon also has unique criteria. It is much targeted and works in every market. It also has the built in problems of the homeowner losing the house and the bank wanting to get rid of it which gives an investor an advantage.

By definition, real estate wholesaling is the entering of a contractual agreement with another party for the purpose of purchasing property, and then assigning your interest in that contract to another investor for compensation.

The actual process of foreclosure varies depending whether a state is judicial or non judicial. The former requiring legal action and the latter not deeming it necessary. In non judicial states, the borrower can grant the power of sale directly to the lender. After a borrower fails to make several payments on a loan, a lender files a Notice of Default (NOD) and the foreclosure process is put into effect. After about three months, the lender files a Notice of Sale (NOS). The house is now in control of the bank or Real Estate Owned (REO) for twenty one days until the actual foreclosure sale.

As with any investment or business venture there are pros and cons when investing in a foreclosure. When buying foreclosure properties, a real estate investor can either approach the homeowner directly, purchase the house at a public auction, or buy it from the bank. Approaching the homeowner gives you the ability to negotiate terms and offers huge margins for profit, but there are title, liability, and legal issues involved.

Public auctions give an investor huge margins for profit but an investor has needs to make the purchase with all cash and usually there has not been an inspection and at times an eviction prior to the auction. Buying from the bank may not offer as much of a profit margin and or terms to negotiate, but it does offer the investor a sense of relief because the house has been subject to a full inspection and there is no title issues assignment.

Often times, foreclosed houses never make it to the public auction. This partly because homeowners have a variety of options they can use save their homes before they are sold publically. An investor could have made them an offer, any bank could refinance their loan, they could sell it with a realtor, or they could take out a second mortgage.

Once you have made an offer on a house and it has been accepted, you can proceed to write the offer with you as the Trustee, with the exact vesting to be determined. The terms and conditions of the purchase and sales agreements are understood and agreed upon by both parties and signed, and ownership of the property belongs to you. The next plan of action is finding a buyer to purchase your vested interest in the contract.

Banks usually have a “No Assignment” clause but there are ways of getting around it, so that you technically never receive title of the house. Using a land trust is one such way. A land trust is a contractual agreement between two consenting parties. The agreement is between the party that creates the trust and the party that agrees to hold title to the trust. The grantor of the trust can also be the beneficiary, which gets full rights and benefits of the property. The trustee on the other hand is just the name on the trust agreement and therefore does not have title to the property.

After this has been established, it is time to refer to your buyers list to find an aggressive real estate investor that is eager to purchase your interest in the contract. When you find an interested buyer you can make an agreement between the two of you, as trustee and buyer where you give one hundred percent assignment to your buyer. If there is an HOA, it needs to be made aware of the assignment to the buyer.

Your buyer can then wire the money and the deal closes with you as the trustee and since your buyer owns the trust, he/she is protected. When this transaction is completed, you can proceed to deed the property from the trust to your buyer. This in turn terminates the trust agreement and you are free and clear. The deal is complete and you can advance to the next deal that is just waiting for you to be found.

Latest Jeff Adams Tips to Sell Any Real Estate Property Fast

If you have real estate investing property available to be sold but you are experiencing difficulty in discovering the right financial investor to offer, do you know how to fix this problem?

Curb appeal is a major thought. Thus, if the landscaping is over developed and unattractive either enlist somebody to trim it up and make it look decent or do it without anyone else's help. Try not to go so far to completely renovate it and start over, that will cost an excessive amount of cash. Keep it basic and simply clean it up.

If you have done that but you time think that it’s difficult to get the property off our hands, you have to break down your offer. You have to make your real estate property as engaging as it can be so that the potential financial specialists feel like you are making an offer they can't turn down.

With the hit that the real estate business sector has taken lately, property valuations have gone down. There is no telling it will rise because the present business sector is still unpredictable and unless the deal you are putting forth is best, you can most likely hope to sit on your investment property for some time.

Utilize the real estate market indicators to make your property all the more appealing to the potential investors. You take somewhat off the price tag to lure the potential financial specialist to approach and investigate your property available to be purchased. The most engaging property will obviously get the first and longest look. The more they look the more likely they are to purchase.

According to Jeff Adams, the best sort of investment option is real estate because there is a tangible perspective to it. Tangible is great because something you can feel and see is superior to anything something you can't see or feel, similar to the stock trading system. If cash gets tight you can auction a portion of the properties that you possess and get to be fluid once more.

Now, how would you sell your property? Where do you publicize?


One of the most common answers is to publicize in the paper.

You need to have a system of real estate investors that you can approach about your arrangements. If you don't have this, you need to begin organizing with different financial specialists.

An Online closeout is a decent approach to offer your property rather rapidly. There will be an installment to make to the sale house that conducts the auction yet anything like that is much better than being in charge of making the home loan installment month after month.


Post it on Craigslist

Having speculation property available to be purchased can be an exceptionally profitable endeavor if you know how to make that property the best possible one in the real estate market so that it can go to the most noteworthy bidder.

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