Читать книгу Foreclosure Investing For Dummies - Ralph R. Roberts - Страница 67

The foreclosure auction provides you an opportunity to purchase a controlling interest in a property without having to deal directly with the homeowners in often-uncomfortable situations. In a way, the auction simplifies the process of acquiring properties. You show up, submit the winning bid, and walk away with the sheriff’s deed.

Buying at auction, however, presents several additional challenges, including the following:

 You may not have the opportunity to inspect the property thoroughly, although you should at least inspect the property from the outside, as I advise in Chapter 8.

 Properties are often sold as is, so you’re more likely to take possession of a property that requires costly repairs.

 Cash payment is usually required at the time of purchase, so you need to show up with a cashier’s check. In some cases, you have a few hours or days to come up with the cash, but you still need ready access to cash to close on the deal.

 Depending on the number of investors at the auction who actually bid on properties, you may face some stiff competition.

 When you buy a property at an auction in an area that has a mandatory redemption period, you may need sufficient funds to hold the property for several months to a year until you see your profit. (If you’re using your own money, you need just enough cash to insure the house and pay the property taxes. If you borrowed the money, you may need additional cash to cover the monthly payments. For more about financing your purchase, see Chapter 5.)

Throughout this book, but especially in Chapter 8 and Chapter 11, I reveal tips and techniques for meeting these challenges and minimizing the risks of bidding at auctions. Only by being thoroughly prepared going into an auction can you confidently purchase properties that are almost sure to turn a profit.