How to Buy Seized Properties at an Auction
Looking to get into real estate investment, you might know what you need, but not have the funds to get it. No worries. Somewhere in this country is someone who has run afoul of the law, or his bank, and had his property seized. All you have to do is find it and buy it.
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Instructions
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Identify the qualities that you're looking for in investment properties. For a business strip, you want location, but for oil drilling, you'll need the mineral rights. Keep focused on your needs throughout the process. Do some research on the markets to maximize potential.
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Find the nearest auction to your markets. Most auctions will list some, if not all properties ahead of time, so you can then inspect the parcels ahead of time. Check public records for cause of seizure and any potential problems to resale.
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Attend the auction. The list of lots should have been pre-posted, but a finalized list will be available at the auction. If there are any last minute changes, such as added properties, consider how this will effect your bidding strategy.
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Bid on the properties you have selected. Unless there is a truly outstanding reason to deviate from your plan, don't do so. It weakens your overall position.
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Pay for the properties afterward. There's usually a grace period of a few days before your bid is considered null and they repost the properties for the next auction, but getting the payment done has several advantages, including security. You'll get a receipt and possibly the title right there.
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Receive the title. This should arrive via certified mail, but some auctions may send it by regular post. This confirms your ownership and allows you to sell the property at any point in the future or apply for development.
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Tips & Warnings
For many auctions you can bid online or hire a representative to bid for you. Just make sure you can make good on the bids and legally acquire the property.
Despite many movies showing subtleties in bidding, you want to be clear and confident in your bidding. Attempt to make eye contact with the auctioneer and use your hand, or voice, to indicate the bid.
Don't leap blindly into anything, no matter how great it sounds. No investment is a sure thing. Take your time, do your research and think about the bottom line.
