Real Estate Investing Blog

Those who are getting started in real estate investment who are looking into buying multiple properties are going to be looking for the opportunity to get a number of great bargains. One way to do this is to look into buying multiple properties at auction.

While you will need to be careful buying properties at auction, there are a number of things that you will discover. The first is that there is some competition. The second is that there are a lot of foreclosed home on the auction block:

(source)The sale came amid warnings that the situation is getting worse. A report by RealtyTrac said the number of foreclosures rose 53 percent in June compared to the same month in 2007. And earlier this month, U.S. Treasury Secretary Henry Paulson said that there could be 2.5 million home foreclosures this year.

Saturday’s auction added to the gloom for those worried about sagging real estate, suggesting that, especially in some neighborhoods with modest homes, real estate values are being pummeled.

In other words, when you are buying multiple properties at auction, one of the things that you are going to want to be aware of is that it’s possible to buy homes at a great bargain; however, there is also a risk as more and more homes are being foreclosed on and sold at auction, property values in a given area are going to drop.

If you are buying multiple properties at auction, it’s important to be attentive about where those properties are located; too many in a single area should set off an internal warning system. While you may find that you can benefit from buying multiple properties at auction, it’s a good idea to be sure that you know the area and whether or not you will be able to sell or rent out the properties.

This entry was posted on Sunday, July 13th, 2008 at 6:09 pm and is filed under Buying Multiple Properties. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.