The choice of a profitable object at the bankruptcy auction will help each bidder to avoid serious financial losses.
It is necessary
- - attentiveness
- - caution
- - logic
Instructions
Step 1
Estimate the liquidity of the lot you found at the bankruptcy auction. The simpler and easier the lot bought at the bankruptcy auction can be sold, the more liquid it is. There are enough liquid and illiquid lots at the bankruptcy auction.
Step 2
Estimate the purchase price and the predicted selling price of the lot found in the bankruptcy auction. Start-up investments and capital gains should differ significantly from each other. The capital gain is obliged to compensate for all initial investments in the lot, overhead costs for finding and buying a lot, as well as the loss of time for analyzing such a lot.
Step 3
Consider competition in bankruptcy bidding. The lower the lot price, the higher the competition. There is no need to wait for a strong decline in the price of the lot if the price was initially set low. Be more original, choose lots that others bypass.
Step 4
Buy objects with encumbrances. Prices for objects with encumbrances are significantly lower. Most bidders bypass such objects, because they do not know how to remove encumbrances from an object after buying a lot. Hence, the competition for such objects is extremely low. Having mastered the algorithm for removing encumbrances from such objects, you can get a great competitive advantage over other bidders and, at the same time, make good money.
Step 5
Consider the region of purchase of the lot. Look first your region, then neighboring regions and last but not least distant regions. Buying a lot in your region, you can significantly reduce overhead costs when buying a lot and minimize other commercial risks.
