Hi again: Last night I attended The Vestus Group's presentation on buying real estate at auction or on the courthouse steps. These guys have it together. If you're local, you can attend their free presentation every Tuesday night at 5:30 at the Windermere Real Estate offices at Yarrow Point.

Again, I'm very impressed with how organized this group is. They've been in business since 2002 and have managed to buy and sell thousands of properties for their clients in this span. The key is they do their homework. Last night there were probably thirty people there hearing the story. Most were investors although there were also realtors and builders in the audience. I had two people who came and are interested.

So how does buying at auction work? Whether you do it yourself or hire a firm such as The Vestus Group (you pay them 3% in addition to the other real estate charges), it's important to be prepared and learn if it's right for you.

Some statistics were thrown out last night. Every week over 1,200 homes in the tri-county (King, Snohomish, Pierce) region are slated for auction. Of these 1,200 about 30% are actually auctioned off. The rest are saved by loan modifications, catching up on payments, bankruptcy, or selling the property. Buying at auction can be done often for 65-70 cents on the dollar. This is usually better than buying a short-sale (typically closer to 75 cents) or bank-owned (usually 85 cents) home.

What's the catch with buying at auction? You need to pay cash. Vestus Group has a great program where you can borrow the money short term (if need be) and then refinance into a longer term mortgage down the road. As with anything, there are risks involved. All the more reason to have professionals help you out. Sure, the costs may be higher but will you really care if you get that screaming deal that you can either rent and cash flow positively or flip for a big profit?

I'm planning on heading back to The Vestus Group's Thursday presentation. And I'm bringing a couple realtors with me. I think buying at auction is a tremendous opportunity right now and I want to spread the word! Again, thanks for reading.