Auction.com is a modern, fast, and easy way to acquire real estate. I had a positive experience with Auction.com from my first real estate winning bid.
A while back I saw a property listed for sale on Realtors.com. It was listed by Auction.com. When I followed the link to Auction.com and created an account, I was able to go to the documents section on Auction.com to do my due diligence. They attached very detail documents on the property for my review. In my case, it was a residential income property. They had attached a retracted current lease agreement, a rental ledger, and general information (including the costs) of the home repair / remodeling completed by the seller. Some property are cash only purchases, while others can be financed. I was able to finance my property, plus, enlist a Realtor to help me during closing if I won the bid. Not all property allowed buyer’s Realtor participation. As a buyer it was free, so I took advantage of enlisting a Realtor, and I am glad I did. She helped me with the closing. Note: if they allow buyer’s Realtor participation, you have to ask your Realtor to go and register for that property before the Auction begins.
Auction Property Closing is Different
Buying auctioned property is a little different than buying a property listed on your local MLS. Every property is different. In my case, after I won the bid, I have to pay a 5% premium fee to Auction.com. There was no “official” walk through during closing. In general, the first time I would have access to the property would be after closing. However, my Realtor sneaked me into the property during appraisal so I get to take a quick peek inside of the property. Also, I didn’t get a house key!! My property manager had to make me a copy from the tenant’s.
This was the first time I bought a property through Auction.com and a very new real estate buyer/investor. I was quite nervous. Another thing I did was I hire a property manager. My property manager was very knowledgeable and I asked her to help me review the current lease agreement to make sure that everything looks fine as I will be taking over the lease as the new landlord. She put my mind to ease by reviewing the lease agreement and letting me know that it was a solid lease!
Buying auction property can be quite nerve-racking. But it is quick and easy. Bid, Win, and it’s Yours! No back-and-forth negotiation. No middle man. No hidden offers. Frankly, I love it once I get over the initial nervousness. I started collecting rent right on the day of closing! It was NOT a theory! The rental money immediately reflected on the HUD-1 closing document as the seller had collected rent from the tenant on the 1st of the month. Very sweet! The closing process with Auction.com was a bit tricky. But all and all, I had a positive experience.
Commercial Property Due Diligence
After my first experience with Auction.com, I continue to go back and look for more deals on a consistent basis. I love commercial real estate, and had always dream about owning commercial buildings on busy street intersections. Auction.com has a ton of commercial property listed for sales and plenty of document to help with your due diligence. Unlike other commercial property listing service like Loopnet.com, Auction.com is completely free. Anyone can signup and access there database of residual and commercial property. I learn a lot about a property’s financials by reviewing its balance sheet and income statement. I learn how the current owner is making money from their property by studying its financials and leasing agreement. They really have a mountain of information for anyone interested in learning and hoping to buy it someday.