Auction Night Success

Just got back from a Hudson & Marshall auction. I had targeted one particular property for a client who was making his first investment purchase. I really didn't want to miss this one, and I had recommended a max bid that left plenty of room for a great return on either buy & hold or flip. I had run a detailed analysis for both scenarios and exit strategies. The home is in a great neighborhood and had almost no work to be move in ready.

The bidding was intense and my client felt the property was his to loose as the number approached my recommended max offer. He surprised me by bidding $5k over my recommendation, but won the bid. I came home to rerun my analysis and sent him the results...a 39% annualized ROI rather than the 59% I had originally projected. Within 10 minutes of getting my updated numbers, he called and said "Let's find the next deal".