Published on Saturday, April 16, 2016 by Land Century
I almost forgot to mention: Youll gain access to listings and deals that you would have otherwise never seen on the market. While many people will go the typical realtor route, others are flocking to these clubs and not just for their exclusivity but to find the best deals on property and real estate.
But before I go into all of the advantages that these clubs offer, lets first discuss what these clubs actually are.
What Are Private Real Estate Auction Clubs?
Private auction clubs are all about finding properties (land or homes) that are listed exclusively. Yes, some of these properties may be listed to the general public, but youll like get first dibs on purchasing the property. And there are properties for very low prices that are difficult to find elsewhere.
The catch is that youll be bidding on properties. Instead of being able to find a sure hit, youll be bidding against other members in an auction atmosphere where the highest bidder will take the prize: the property. These auctions can be held by realty companies that have an exclusive clientele, or they can be held by bulk land owners that buy and sell land frequently. In either case, it is another tool in an investors arsenal when they want to buy and sell properties. If youre just working with realtors or using traditional outlets, there is a good chance that youre not going to see any of the properties you find on auctions for sale.
Private auctions mean members are the only ones who can bid, so youll also have a much higher chance of landing properties youre interested in.
Advantages of Private Real Estate Auction Clubs
Now that you know what these auctions are, lets take a minute to discuss some of the advantages that they have to offer.
Weve mentioned it several times in the article so far, but it deserves even more emphasis: these auctions are exclusive. Many of the properties, homes and land that people wish they could own change hands, but never actually hit the open market.
Sure, some of these deals are done in the family, or theyre sold directly to buyers that approach the owner. But many and I mean a lot of these properties are selling through private auctions. Not only will the seller flips their property quickly, they often pay less fees, deal with less red tape and theyre receiving money upfront in most cases.
2. Bulk Land
We deal primarily in land, and it is safe to say that properties come and go through our listings rapidly. But bulk land is often difficult to find and very high in demand. Some investors want to build on the land and will build several rental homes, flip the land to developers or build their own estate. Some investors simply have a windfall of money and buy bulk land to hold onto it so that it appreciates in value. In all cases, buying bulk land can be very difficult and costly.
But auctions have rock-bottom deals and wholesale prices. Youll find land that maybe other investors want to unload from their portfolio, or deals that are simply going to auction because the owner doesnt want to post them publicly. Weve seen a lot of great land deals go through auction that were simply unprecedented in the open market.
People are window shoppers. They like to look, look and look some more before buying anything. Sometimes, people will just look and really have no intention to buy until the right property is on the market (or any item for that matter). Variety is one of the best advantages of a real estate auction.
You may find a 10-acre parcel for sale in a thriving location that can make you income very quickly. Or, you may find a small piece of land with a rundown home that you can renovate and sell for tens of thousands of dollars in profit.
Variety is a good thing especially in the real estate world.
Youll have so many options to choose from, and the prices are often wholesale or below, meaning youll be saving vital investment money. Think of an auction much like you would going to Costco youll be buying from a bulk seller in a lot of cases.
4. Potential to Sell Properties
Members of these exclusive auctions will also have the benefit, in most cases, to sell their investments as well. Perhaps you have a parcel of land or a home that you need to unload and you dont want to wait months to take your first step in the process.
What can you do?
List these very properties through the auction that you are a part of. Its a great opportunity for you to be able to start making some cold hard cash from properties you no longer want to keep in your portfolio.
5. Hand-picked Deals
There are tens of thousands of properties for sale all around the country. Many of these sales are simply not worth your time and effort; properties may be too expensive, land may be unusable, and so on. Filtering through these listings is a job in itself.
Youll spend massive amounts of time weeding out your offers to find only the best ones available. Many auctions will include hand-picked deals that have been verified by the seller. These are deals that youll jump on the moment you see them, and youll be able to add them to your portfolio immediately. Think of these deals as being hand-picked for you.
Youll have all of the potential bids given to you being tailored to your needs. It ensures you dont waste your time during an auction, and it ensures that the auction runners make money its a win-win for everyone involved.