Following bidding on Auction.com

[Thomas Ferreira Jr.]

Hey guys,

Been browsing the inventory on Auction.com. Found a couple of properties that I'm interested in. As practice, I'd love to crunch the numbers and come up with a price I think is fair, then compare that to the winning bid at the end. Is there a way to do this? Would I have to register for the auction? 

Thanks in advance!

T Ferreira

[Mike Dorneman]

@Thomas Ferreira Jr. You can follow the sales price and the work backwards on the numbers. If you don’t want to wait, go on Realtor.com or Zillow.com and search your target area using the “recently sold” filter. You can then run your numbers based off that sale price and determine if the deal is a winner or not. I often do this then send the analysis to my realtor asking her why She didn’t get me that deal! “She’s loves those emails” 😂😂 One thing to note on your calculations. Don’t under estimate capital expenditures, vacancy rate and rwmo costs. I see new investors breeze over this all the time and it will always come back to bite you. Something will break / leak, you will go over on your Reno budget, things will take longer than expected and you will have some vacancy at some point. Plan conservatively and worst case, you have extra cash in the savings account at the end of each year that you can redeploy into your next deal.