Taking Advantage of the Foreclosure Auctions

I think that the foreclosure auctions are a tremendous opportunity to build a buyers’ list. Here are eleven tips to keep in mind as you attend your next auction:

1. Make sure to bring plenty of business cards with you.
2. Smile and show confidence, when you talk, hand shake and hand out your business cards.
3. Have a clean/professional presentation. Pay attention to details, no dirty shoes and/or shirts, etc.
4. Let the buyers know that you come across great deals BEFORE they get to the auction.
5. Be prepared to obtain their basic contact information (Name, phone number AND email), remember that your goal is to build a buyers’ list.
6. Have your “2 minute presentation” ready. Know who you are and have confidence about you and your services. Your clients can sense your confidence, people like to associate themselves with others that exude confidence.
7. Keep your eyes and ears open. Observe the participation of the auction, you will notice who are the movers and shakers. Anyone that you see buying several properties would be a great person for you to invest some time on them (invite them to lunch) and get to know them and their needs. This is a tip to WOW your potential customers, since you are willing to invest time and money on them and their needs it will make you different that others in the area that are only interested in their commission.
8. The people that participate in the auctions are cash buyers. Remember that at auctions, after someone wins the bid on a property, they have to immediately put down a down payment and then close within 30 days. So these are serious buyers, regardless of the amount of properties they buy.
9. Be persistent. Regardless of the results of this visit, do it again it will sharpen your saw.
10. Follow up. After you collect your buyers information, immediately load it into your contact software (i.e. Outlook) and follow up with them with a thank you email and share a free report with them (Rehab tips, How to Sell Your House on This Market, etc). Again it will make you stand out from the rest of the group of wholesalers/realtors who are only looking to make a quick commission.
11. Remember that all you need is 10 solid buyers. Keep in mind that if you have 10 serious buyers that on average buy one house per month and you make a wholesaling fee of $5,000 per transaction, you are making $50,000 per month. So you do not need all of the cash buyers in your area to join your company to become wealthy.

I hope this tips help you improve your success in your next foreclosure auction.