News and Articles

November 16, 2009

How Auction Representatives Can Help You With Tax Deed Sales

Here's how the process works:

First, an Auction Rep begins by assessing areas and evaluating which counties have the most potential to invest in. The investor and the Auction Rep discuss what type of property to buy, and how much the investor wants to spend. Then the Auction Representative begins to research the up-coming tax sales in those areas. This is when the work begins. After sifting through hundreds and sometimes thousands of properties, the Auction Representative must narrow down the search for the best properties to bid on at the auction. They will find several properties that look like they have potential and then conduct the due diligence needed before they actually attend the auction. Most will create a checklist, for example checking the property values, lien searches, area evaluation, and more.

Once several properties have cleared this process they get monitored. Most Auction Representatives have to watch several properties at once, since at any time, properties can get pulled from an auction.   To receive the best deals, several buying options are needed.

 All this information in hand is very valuable, so that a bidding price can be accurately determined. It is extremely important to know what the properties can be resold for quickly.

Once a property has been successfully purchased, the Auction Representatives takes the necessary steps to assure a clear title. While this process is in the works, the Auction Rep is trying to secure a buyer for this property. 

Payments:  

The investor provides the capital to buy the properties, including for incidental fees, and the Auction Representative does all the work while receiving a minimal payment up front, until the property gets re-sold. A fee is agreed to between both parties before the process begins, a guideline is a rate that usually ranges from 35 to 50% from the gross profit of the sale of the property.  

 Auction Representatives will work very hard to find and re-sell these properties quickly  for the investors that they work with so they can collect thier profits and secure more properties from the next sale , which are held sometimes twice a month in certain counties.This will produce a snowball effect which eventually results in a positive cash flow every month for both the investor and the Auction Representative.

To find an Auction Representative in your area use the CONTACT US page at www.taxdeedlists.com