The foreclosure auction is a place of unbridled capitalism. The property being auctioned by the Trustee goes to the highest bidder.
My company helps investors in determining the maximum bid they should make to achieve their investment objective. Anything more, and they are undercutting the profit they wish to make.
Sometimes we are outbid, and my clients feel bad about this, but I tell all my clients that they should celebrate the deal they didn’t get as much as the bid they win!
When we lose a bid, it usually means the bidder who won paid too much! There are a lot of people at the auction who don’t have my experience in knowing how much it will cost to get the property into salable condition, and what is the most they can expect to sell it for, so they overbid. Let them!
There are just too many properties available to cry over the one you didn’t get. When you do win the bid and were at or below the maximum bid you decided upon, then you will realize the most profit.
It takes discipline to do this, and not get carried away during the auction. That’s why my team of pro bidders does that part for you. They are in constant phone contact with you during the bidding to keep you apprised of the current leading bid, but as they have been to thousands of auctions, they don’t get carried away!
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