Two of the questions we get asked all the time are:
1- By training us are you not just creating competition for yourselves?
2- Are the auctions very competitive?
To answer the first question, no we are not in the business of creating competition for ourselves. With close to 200 properties going to the auction in Houston every month, we couldn’t buy all of the available properties if we wanted to. Not to mention that Texas has 254 counties, each with there own Tax Deed auction! There are always more opportunities then investors so this is not really a concern. One thing we tell our students is that if they are concerned with competition they should explore some of the smaller county auctions where there are typically less then 10 investors who show up for the auction and thus there are plenty of opportunities. We will be down in Texas very soon for four months straight where we will be travelling around Texas exploring many different counties auctions and will be putting together a report for our students where we will identify very lucrative Tax Deed auctions for counties other then just Houston.
To answer the second question, the answer is yes and no. At a typical auction in Houston you can expect anywhere from 85-150 people to attend. There are 8 different Tax Deed auctions going on at once so no one individual can dominate the auction. Of the attendees really only 10-15% of the people there are actively investing and bidding. The majority of people there either came with someone who is investing or are just there to learn and to watch the excitement. Cash is king in this business and currently there isn’t a whole lot of cash to be thrown around. Thus there are ample opportunities available for everyone to get some great deals.
Hope this clarifies a few important points. We are getting ready to take down a group of eager investors to the March auction. There are some fabulous deals on the property list. We will keep you updated on the progress!