Home » Home and Family

The Use Of An Investment Plan When You Join Real Estate Auction

Feb 5, 2008
No investor wants to exceed the maximum price that they are willing to spend for a particular property when they go into an investment deal. However, our competitiveness ruins the plan when we enter an auction or bidding.

The scene in which an investor exceeds his maximum price for a property is common during auction. When you see other bidders react to every bid, you'd be teased to make one more bid and then another. And before you know it, the bid stops with you and you're way over your budget for that property.

An open house "bid taking hour" is another bidding situation an investor often runs into. Often times, the properties involved are those owned by banks or private individuals that need to be sold as soon as possible; they maybe neglected properties. What agents often do here is they skip the listing process and go directly to showing the property to a group of investors by arranging an open house showing of the property; the following day will be the submission of the offers to the property owner.

There are instances also that these open houses can span from a day to a whole weekend. And there are even some that only opens for only an hour to show to the investors and that's the span of time for you to make a decision. What I wanted to tell here is that, in these transactions, you have to make a decision quick but accurate.

It is at this point where a good investment plan works in the investors favor. An investment plan is basically doing your homework before you ever get to the auction and staying disciplined in your bidding. There is no substitute for preparation in a hurried situation like this. Preparation takes the doubt and guess work out of the equation.

That preparation should include checklists complete with pricing data for all of the potential repairs that this, or any property may need. A good investor can go over a house and get a very detailed cost analysis of the property in a very short amount of time. Gathering pricing data is essential for a good overall cost estimate.

A good technique to help you estimate cost is to prepare a known room packages with estimated cost available. For instance, you will need a tub, toilet, paint, flooring, plumbing, electrical, and other cost that is involved in rehabilitating a bathroom. If you know the room package price, you would find it easy to estimate the cost of a room when you inspect it in a short time; you should have a good estimate of the entire house if you do it room-by-room.

In summary, being prepared may just be the competitive advantage that makes a good investor great. Checklists speed up time and reduce mistakes that could be made in a hurried situation.
About the Author
Author Jacques Coquerel is a real estate investor based in Atlanta, Georgia. He has made more than 750 real estate transactions since 1996. For Real Estate Investing Tips get his free course Real Estate Investing Free Course.
Rating:
Please Rate:
(Average: Not rated)
Views: 155
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources