Pre-Auction Profits 101

Pre-Auction Profits is a method used to eliminate the competition at auctions; it’s pretty much a way to get the deals before anyone else.

When you go down to an auction you’re competing against hundreds, sometimes even thousands, of other people; however when you’re working pre-auction deals the correct way, in our opinion the right way, you’re competing against one or two people max, or sometimes you’re not competing against anybody!

There’s a direct step-by-step process on how to get those deals, how to make money from those deals, and how to turn those deals over and be able to do it fairly quickly so it’s a really good option. There’s of course a fair amount of paperwork and a lot of foundational knowledge you need to do this successfully and that’s where we come in.

These kinds of deals are incredibly easy to screw up since you’re either dealing with people with mental health disorders, addiction, or it’s someone who has passed away so you’re dealing with some interesting stuff. The most important thing is to understand the technique and the tools to find these pre-auction deals, then it all comes down to negotiating these kinds of deals profitably in order to make money.

When it comes down to it, pre-auction profits is about:

  • Driving properties
  • Getting in front of and talking to people
  • Knowing how to negotiate the deals
  • Being clear on the numbers
  • Evaluating deals quickly
  • Being able to secure the property without putting yourself at unnecessary risk

Pre-auction profits are really something where you need to lean on some legal knowledge like the difference between a warranty deed and quitclaim deed, you’ve got to know about access proceeds and overages, subject 2 and wholesaling, and so on.

The reality is that you can do it, if you can get to the people, it can be very rewarding and worth the time you’ve invested in these strategies. Let’s be clear for a second though, pre-auction tax investing is what the pros do, it’s fairly advanced to get to the pre auction deals. Normal people or the rookies will go to auctions, our students who know the advanced methods will get those deals before they even hit the auctions.

We’re working on a course with a step-by-step process that goes over all types of real estate investing techniques, various case studies, negotiation tactics, examples of deals we’ve done, pretty much from everything from being able to become a tax lien lender to being able to secure a property by being a hard money lender. I’ll let you all know when the course comes out!

Comment below with any questions on this topic, I always love hearing from students.

– Dutch

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