Posted by Charles Parrish on September 07, 2011 at 07:04:15:
You have a system that works, stick with it. We sell many properties at auction all the time. We actively go out in the market and look for sellers who are motivated to sell and give them a proposal. I can either buy it, I mean CONTROL IT, or I can give the seller a proposal to sell it for them at a reserve auction. What you are missing here is the fact that the seller is ready, when they do business with an auction company, they have mentally given that property away.
Stick with what you are doing, but don’t pass up an auction in your area, you really never know what is going on in the minds and life of the seller.
I have 20 auctioneer associate working in the field for me. Their job is to run my leads, create leads, book auctions, or do hybrid deals, sometimes double dip fees and equity and do it over and over again.
I advertise on radio and TV in my area to create a great reserve of leads; houses, commercial deals, water fronts, lots, subdivision and non-conforming properties. For me, marketing for deals is like a big grab bag, I never know who is going to be calling me.
Finding high equity position real estate should be the goal of investors, today at 69 years old, my real estate holdings is large enough, I continue to control real estate and flip, usually within 3 weeks, I have more fun today making quick profits without ownership. My system has worked very well for me and the people who work with our company.
I am in Baltimore but also have a house on a Amelia Island Florida, just outside of Jacksonville.
To answer your PS, you really never know how much you might make per deal at auctions by bidding or by following up on a no sale by tracking down the seller.
Developing a real estate awareness and a system in this business is a great thing, most new investors don’t have a clue and wind up taking every course that comes down the pike.
Have fun, understand what you are doing, do it often, be fair, make all disclosures and try never to hurt anyone in any deal; do this and cash flow will flow in abundance.