Real estate investors have been increasingly complaining about a lack of deals and even big funds seem to be struggling with getting their money out there.
So how was one investor able to buy 650 distressed properties in 5 minutes last month?
One Michigan investor bought every single home for sale at a recent tax auction, picking up 650 deals for $4.8 million.
At the auction Macomb County announced it would let every property go as a package deal for the amount of past taxes due. This has angered some real estate investors who had spent time preparing for the event but the county calls it a win as they weren’t left lumbered with unwanted homes as normal.
Some claim rigging, which has become more prevalent at foreclosure auctions in the last couple of years but the investor who acquired them says he is going to donate a good number of them and let others go at reasonable prices to other investors who want them.
So despite increased competition foreclosure auction can still hold golden real estate investing opportunities. Just because you don’t have that kind of cash in your checking account or under your mattress doesn’t mean you can’t profit too.
Why not partner with others like this? Certainly many need help analyzing and reselling what they have acquired and definitely need property management help. Clearly they can also be a great source of discounted deals with more opportunity to complete due diligence than buying direct from an auction too. Or how about pooling money and setting up your own real estate investing fund and trying this for yourself?
There are clearly still plenty of distressed properties out there and great real estate investing opportunities if you are creative, open to collaboration and know where to look…