Going, Going, GONE! “A Day In The Life”…

Hey batter batter, hey batter batter, heeeeey batter batter…. OOPS! Ok, it’s late, and I got two old time American “chants” confused… what you’d hear at a little league baseball game, and what you’d hear at an art, collectors, or car auction! The pick of the day for a lot of successful real estate investors these days is “home auctions”.

But these auctions are completed by telephone… going, going, GONE!

In this “A Day in the Life” episode on the “Flippin Right Show”, we focus on a real home auction that we completed. You’ll see kids on the corner holding signs, see where else we advertised and marketed, see our bid sheets, hear some rules, and listen while I explain the “rules” of the auction.

Some call this a “3 day sale”, others call it a “5 day sale”, still others call it “8-9-10 day sales”… but we just like to call it KA-CHING! A “Round Robin” auction, as these typically are really called, give a new or experienced real estate investor a great way to sell a house fast, which is predictable and profitable, if you know the basics, and put in the marketing time!

No, not every auction ends up with a sale! The one in this real estate training video will cash-out, but let’s not blow smoke where the sun doesn’t shine folks, like any other technique, it doesn’t work “every” time!

The last one we did, our top bidder was about the same as our price to buy the house. The seller wanted to sell the house, but owed what we were paying, and wasn’t enough of a motivated seller to bring cash to the closing table to sell… so we lost around $1200 in marketing costs.

BUT… if you learn the technique, the little bit you lose on some, is MORE than paid for when the majority close!

When dealing with a foreclosure, a short sale, or any other motivated seller situation, in many cases the seller will drop his price to move the property after the sale day, if you don’t have a high enough bid/offer. This type of sale shows the TRUE value of a property, and waving the list of lower offers in the sellers face can be a strong argument to get them to re-negotiate, when the best offer isn’t high enough.

In many cases though, as long you “BUY RIGHT”, which is the true key to success in real estate investing, you won’t need to get anywhere near the retail price to make a good profit. A great resource to learn the basics is a book by Bill Effros, called “How to Sell Your Home In 5 Days”… check it out, it’s well worth the $25 or whatever.

So don’t be a chowderhead next time you’re wondering “how can I move that house I have an option on?”…. use your noggin, so it can be GOING, GOING, GONE!

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Posted on Monday, February 22nd, 2010.
Categories: Day In The Life, Marketing, REI-TV, Tips and Strategy.
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