For this episode of the podcast, Brian and John share their experiences with auctions. They bought quite a few properties at auction back in 2016 but have since stepped back from the auction circuit. However, the guys just recently bought one property at auction and are now considering making this a regular occurrence again. We hear about what auctions were like when the guys first started and the changes they have gone through since then. The guys talk about the properties that they have bought at auctions and the how profitable they are compared to ones bought through other means.
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This Episode is Sponsored by
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Covered Topics:
- Mistakes to avoid when bidding on properties at auctions.
- What happens in Columbus after winning a real estate auction.
- The newest property acquired via auction by Brian and John.
Show Notes:
- 00:33 – What’s been going on this week.
- Doing the podcast in the new studio.
- A big refinance coming up next week thanks to appreciation.
- 03:02 – Brian and John’s beginnings in the auction scene.
- The time-consuming bidding process that the guys used to do weekly.<
- Properties turning out well in hindsight but being difficult at the time.
- Auctions in Franklin Country now being conducted online.
- 06:14 – Blunders seen or made by Brian and John at auctions.
- Costly mistakes that John recalls seeing bidders make every week.
- A rookie mistake that Brian made at one of his first auctions.
- 09:47 – A property that the guys have recently won.
- Going slightly over budget on the bid.
- Their first time bidding using the website Auction.com.
- 12:31 – The importance of researching.
- Doing a title search before getting a confirmation of sale.
- Finding a $30,000 lien on a property that the foreclosing attorney overlooked.
- 15:44 – The process of terminating tenancy, cleaning the property, and selling it.
- Evicting tenants in an ethical way.
- Brian’s arrival to a property that he bought before seeing it, and the disgusting state of the house.
- The effectiveness of staging a house.
- 19:43 – Buying a house sight unseen in Columbus.
- Brian going to check the house out after John won the auction.
-Major problems with moisture and mold.
- Issues that have come from contractors rather than auctions.
- A fired contractor coming back to trash the property.
- 24:26 – The future of Brian and John’s participation in auctions.
- A summary of the properties the guys bought in 2016 and the rental income generated from the ones that they have held onto.
- John seeing people bidding way too high on sight unseen properties.
- Running the numbers on profitability.
Topic Takeaways
- Research is paramount in bidding at auctions. Buying sight unseen is extremely risky.
- Make sure all legalities of the property handover are handled with the help of a professional.
- Don’t get caught up in winning the auction. The price must be right.
Tweetable Quotes
“You saw some guys in there, and they would get emotional about it. They wanted the property, but more than that, they wanted to be the winner. In our business, it doesn’t pay to be the winner. You’ve got to get the property at the right price.” (Tweet This!)
“Make sure you do your research. Get on Bigger Pockets and look at what people are doing in your county because they’re all different.” (Tweet This!)
“It’s easy to say ‘oh, I’ll just send you an eviction.’ But for us, morally and ethically, we really want to do the right thing… We have the control and they don’t, so we try to give them mercy as much as possible and try to work with them.” (Tweet This!)
