* Making Profit From Foreclosure Auctions

Have you ever wondered whether you could make money as a company which deals in buying and selling estates? There is a lot of money, in the correct market conditions, to be made in foreclosures. There are two important steps to take before you start though. First of all, you need to be a legal company from all points of view, so you will need a reputable lawyer. You will also need an accountant, one who will do everything for your company. These are the most important factors.

Ethical And Unethical Means To Success

For example John Smith and Peter Smith are brothers. John has a company named “Best” and Peter has another company named “Pest”. John has bought a home at an auction for $80,000. He waits for a month and does nothing. On a bright and sunny day, the “Best” company makes an auction for the house, but he would really like to have $40,000 as profit (not counting taxes and other costs). The president of the “Pest” company (Peter) goes to the auction and joins the auction as the “Pest”. Peter knows that he mustn’t let anybody win the auction if the offer is under $120,000, so whenever it looks like an opponent is going to win with a much lower price, he offers just a little bit more than his opponent. If the price rises above $120,000, he won’t make an offer anymore and just sits out the rest of the time. The auction is over and someone has won the bid. If Peter is the winner, they try to resolve this legally to have Peter escape from paying such a huge sum of money. But if Peter had lost and someone else won with the price a minimum of $120,000, that is $40,000 more than the original price, they have made a good profit and it is shared.

This is a very unethical way of getting rich. You should be aware at the auctions that there are bound to be dirty tricks. Though perfectly legal it is completely unethical to use similar tricks at an auction.

Foreclosed Home

The most ethical way to make money from foreclosure auctions on estates is to participate at auctions and win on lower prices. Make rent investments until the value of the estates become high and then at the right time the sale should start. You should only participate at auctions when the prices for houses are lower than the actual value. You can make money from the renters until the price for the estate increases and then start to sell some houses or flats within the property. This way you invest when the prices are low and make some real money when the prices get higher. You earn money and you don’t have to employ underhand tricks to become successful. You just have to listen to your instincts and choose the best option at the right time.

You can indeed become a very successful trader if you just believe in yourself, listen to your instincts and know what is going on around you. Ask yourself, what would you like for the future and if you are going in the right direction in this moment to achieve this target? The answer to these questions should help you decide whether you are on the path to victory or on the road to failure.


Northern Great Lakes Property Management

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