Back in the fall of 2004 I attended an auction to buy a certain house. The house was not available however since it was sold a few days prior to the auction. Another house that I was familiar with but had not inspected came up for auction. Probably a dumb thing but I noticed that the bidding was going slow and I know the general price range in the area so I started to bid. Lo and behold, I won the bid and thought I had bought a house. Went and looked at it and thought I did good. Auction price was $62,500. They didn't mention a reserve at the auction so I was pretty happy. Two weeks later I get a call from the realtor who said the bank didn't accept the offer. This was okay since I had other projects going.
A month later I drove by the house and saw another auction sign from another auction company. I decided to attend. This time it was at the property where the first auction was at a hotel. I told the auctioneer and the real estate agen in attendance what had happened and that I wasn't there to bid, only observe. That was okay with them.
There were two other couples in attendance that were going to bid and had registered. The auctioneer explained all the rules and asked for an opening bid. No one said a word so he said he would open the bidding at $50,000. Again no hands went up. I was standing in the corner and after a few moments of silence I said I would give them $50,000. Again no hands went up so they ended the auction and told me to bring them a check for 10% on Monday which I did. I waited about two weeks not expecting to get the property but I DID. The bank accepted $12500 less. It was December and they apparantly wanted to get it off their books. I have about $20,000 in rehab costs including a new hot water furnace and the repair of broken, frozen water pipes and about 38 gallons of paint, etc.
I have rented it for $1000 per month. The renter wants to buy it for $152,000. You do the math. My best deal so far. They haven't always gone like this but I am making a living and having a lot of fun. Sure beats the 30 years I spent behind a desk. Good luck in your investing. Go to auctions at the end of the year. Banks are motiviated.