Fwd: 7 deadly auction mistakes to avoid

[Brenda Rost]

here are some timely tips!

Brenda

----- Forwarded Message -----
From: "Dustin Hahn" <dusti...@easytaxsaleprofits.com>
To: "Brenda Rost" <ape...@shaw.ca>
Sent: Friday, October 18, 2013 10:50:08 AM
Subject: 7 deadly auction mistakes to avoid


Hello Fellow Tax Lien and Deed Enthusiasts! 
 
Today I want to take a few minutes of your time to share with you ways I’ve learned to avoid 7 DEADLY mistakes that
first time auction goers may encounter. 
 
Let me first say, that for the first trip or two, it is a great idea to have someone with you who has had experience
with the auction in your county, or a county you wish to check out, but since that may not be possible in your
situation, here are some things I’ve learned: 
 
Deadly Mistake #1 - Not Looking At The Properties In Person
 
I know it is very pretty to look at a property online that has an Assessed Value of $75,000, go for $2,450 opening bid
on Auction Day, but there are things we need to consider: 
 
-First off, why was it at the auction? 
-What kind of area is it in? 
-Is it still standing? Did it burn down? Did a pipe burst inside? Are there squatters inside? 
-Is it this cheap for a reason? 
 
How can we answer most of these questions? 
 
ANSWER: It is essential that you see the CURRENT condition of this property. Nothing about this step can be bypassed. 
 
Now, there are ways to do this without being a local. (Ex: hiring someone through a local ad to take pictures and send
them to you) 
 
But whatever you end up doing, DO NOT bid on a property that you haven’t seen the current condition of. (Unless you love
the risk, then by all means, give er!) 
 
Deadly Mistake #2 - Not Knowing The Auction Rules 
 
Is this auction a sealed bid? Or do I have to run around and yell at people, waving my hands so they notice me and
accept my bid? (I wouldn’t recommend this practice, but you get the idea.) 
 
And what happens if I bid and don’t pay? Will they ban me from bidding at this sale for life? Or just for the day? Some
counties are VERY strict on this. So BEFORE you bid, make sure you call and ask them their policies on this. (I’ve seen
sweet talking do wonders here - but don’t rely on it.) 
 
Deadly Mistake #3 - Not Knowing What Forms Of Payment They Accept At The Auction 
 
You’ve got to do your research and find out how you need to pay at the auction. Do they accept Debit/Credit right there
at the Courthouse? Or do you need cashier’s checks? 
 
Another important thing to know is how long you have to pay for the item after you’ve successfully won. Is the cashier’s
office in the same building as the Auction? Or is it 2 miles down the road across a giant lake? 
 
Some auctions require payment within an hour, so you may need to bid, win and head straight over to the cashier’s office
(or whatever it may be called in your county - the gal that takes your money) and pay right away. This can sometimes
even lead to you missing out on other properties - so make sure you factor this is to your bidding schedule. 
 
Deadly Mistake #4 - Not Knowing Registration Details 
 
Do you need to register the week before? The day before? The day of? 
 
PLEASE call the county and find this out. There is nothing worse than doing days and days of research, traveling to a
county, only to find out you can’t bid because you didn’t register the day before. 
 
It can happen, and you can be left helpless, and angry. Make a checklist, and add this to it! (For those of you in
Houston, as of my last trip there, you just show up the morning of, around 8:30-9, and register then. Yay for Free
tips!) 
 
Deadly Mistake #5 - Not Knowing Where The Auction Is 
 
Two parts to this one. 
 
There are a lot of buildings in the government system, and they all have different names, even county to county. Make
sure you call ahead to know EXACTLY where the auction is going to be held. In front of what building? Ask specifics, and
even get photos if you can. (Or bring along a handsome guide :)) 
 
Is the auction in front of a building, or is it in front of a computer screen? With the ever growing internet thing that
is happening, some of the smaller counties are moving their auctions ONLINE. This means that everything is done
virtually, usually with sealed online bids. A simple call will help you find if the county your interested in does this.
(Another to add to the checklist.) 
 
 
 
Deadly Mistake #6 - Not Having A Detailed Property List 
 
Things are bound to get hectic at an auction. Papers are turning, people are speaking, cars are driving by and you need
to compete with that, with 100% focus. Now is not the time to be thinking back on the properties you saw and trying to
remember what it looked like and what it was worth to you. 
 
This is where a detailed property list can come in great use. 
 
I’ve used an excel sheet to put the list of properties on (in the order they are called), and added important details
such as: Parcel Number (Or whatever the number system is in your county) Opening Bid, Assessed Value, Market Value,
Acreage, YOUR MAXIMUM BID, and even a rating system. 
 
***A little on the rating system - I’ve seen it used in the past, by Tax Sale Jedi’s, a rating from 1-5, or 1-4. 
 
This system allows you to know what to bid on, or not bid on, even if you can’t recall exactly what the property is. 1
being a definite bid, 2 being a most likely, 3 being closer to No, 4 and 5 being definite no’s. 
 
But remember, this is all relevant to you, so you need to define your rating system and make it work for you. Use it,
tweak it, define it and succeed with it.*** 
 
It is also VERY important to know what your maximum bid is. Things get crazy out there, and adrenaline starts pumping.
Before you know it your up to $30,000 on a $50,000 property, and all your profit margin has been thrown out the window.
Set a maximum you want to spend, circle it, highlight it, and stick to it! 
 
Deadly Mistake #7 - Going In To The Auction With Guns BLAZIN 
 
On one hand, I want you to get in there with energy and fire, but this adrenaline and excitement can often get out of
hand, for the first, second, and even 10th time auction goers. 
 
Once you get in a battle with another bidder on the same property, it’s easier to want to push that limit just a few
hundred/thousand dollars more. 
 
But that could be a hundred or a thousand dollars into your profit. We want to be prepared. Make a maximum bid, and
stick with it. You may loose this particular battle, but there will be plenty more to fight. 
 
Its great to have money, and its great to have properties that you want to buy, but we CERTAINLY don’t want you to throw
that away. Knowing all this information before hand will help you gain a certain edge, that people without Auction
Training don’t have the privilege of experiencing. (Or at least not without wasting thousands upon thousands of
dollars.) 
 
Being prepared will help you remain calm, and fluid with exactly what it is you want to bring out of these auctions. 
 
It never hurts to have a guide as well, but more on that later. 
 
Take these tips, write them down, make a checklist and use it to gain an advantage over your competitors. I want to help
you maximize your profits in these Live Auction Trips, so use these tips to get out there and WIN! 
 
 
Thanks for reading, 
 
 
Dustin 

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