One of the driving forces behind the real estate auction business is a supply of cheap houses.

If you take away the supply of cheap houses then the model our company follows will no longer work. In the days of old people had to increase the value of their home by doing the proper improvements, or add square footage. Remodeling a property was often a very expensive process.

We get our profit built in up front. What that means is that because we get cheap houses we don't have to create value. Its already there. So instead of the buy low sell high strategy we buy lower (lower then current market) and sell normal. It's a much more effective strategy. The profits are right in line with remodel projects just without the work.

Once nice cycle in our business is the new owners entering the market. They are getting properties at market value but already upgraded. When you flip a property and upgrade the property, it makes the new owner a winner in the deal. They now have more to choose from besides bank owned "as-is" properties.

Our business cycle creates a win win for everyone involved. Think about it for a second... The new buyer gets a fixed up house, the old owner gets "cash for keys", the investor makes a profit, the agent gets a listing, you make profits, the workers get work, title companies agents and loan officers all make commissions. All this happens on every transaction! Win Win Win!

There are several ways to find inexpensive homes (eBay, auction, flyers, REO, short sales, deed in liu, etc). The one thing you sacrifice when purchasing at auction is the ability to be picky on your desired neighborhood. About the best your going to narrow it down is by zip code. Granted this can be a serious drawback but when compared to the savings you can get on an inexpensive home its certainly worth it. cheap houses