Auctions? Yea the tv shows don't exaggerate completely.....

[Johnathan Smith]

So I’m an investment agent, and recently I’ve been going to auctions to prepare myself for getting into the fix-and-flip game. I’ve worked with investors for a while now, and I’ve seen the kind of money they make on these properties, so I figured it was time to join the party.

After walking through so many properties with investors and sitting in on meetings with general contractors, I’ve realized that where most people lose money is in the acquisition stage, when you don’t fully assess the property and miss major issues. So, I’ve been using auctions as a kind of “quiz” for myself: I’ll analyze a property, decide what I’d pay for it, and then compare that to what other investors say they’d buy it for.

I went to one recently in the Franklin area, my fifth auction so far, and this one honestly felt like a TV show. It started with two investors driving the price up against each other, and just when one seemed to back down, a third “rogue” investor jumped in with a bid no one could top. I realized they were basically pushing the others to their max so they could swoop in and win it.

And it didn’t stop there, one guy signaled his bids by shaking his leg, and another by tilting his glasses. I couldn’t believe it; it was straight out of something you’d see on TV.

Have you been to an auction before? If so, what was your experience like? If not, how are you learning the fix-and-flip game?