Buying properties through Auction

4 Replies

Hi!

I am a Realtor in South Florida with just 2 years of experience. There is a Brazilian investor who wants to hire me to help him during all the process of chosing the properties, placing bids on auctions (online or in courthouse), hire professionals for fixing up, and then listing the property.

How do I charge for the entire job? All ideas are welcome! Thanks!

Advise your customer there will be very little profit buying at the auctions, to rehab/flip. Too competitive. But if you do, make sure he builds in the costs of proper pre-auction research for title, HOA debts, taxes, etc. you could charge a few points on the buy side, then of course on the selling end.

Thanks for your input, Wayne! Honestly, these days I don't see investors having a good profit. Up to two years ago, yes, but not in this market.

Enjoy your Sunday! :-)

While there are rare exceptions, the auction is not the place to look for rehab houses.   Realistically he can participate in an auction from his home country.  

Where you can really add value is by finding him off market property.  I personally do rehabs and I help foregin buyers do them as well.  the way I do it, is that I make the entire process turn-key for them. 

I find the house, I hire and manage the crew (that requires a lot of effort), I get the property sold for them.  I offer my local expertise and walk them step by step through the process.  In most cases, I partner with them and make my money on the back end, after the sale.  That way then are 100% assured that I have an incentive to make the flip as profitable as posible. 

For foreign investors, trust is key.  There are a lot of frauds out there who will rip these people off.  By partnering in the deal, I eliminate most of the trust issues, and I offer the foreign investor a lot of value.

So short answer; dont look at a fee, look at a % of the deal.  I wont even participate for less than 50% of the deal, but I make my investors a big pile of money. 

I hope that helps

Josh

I have an ongoing stream of great Florida properties. I am looking to connect with someone who has a buyer who can buy every single property. Contact me if interested

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