Unlike Rightmove and Zoopla the tool by the EIG allows you to search for repossessed properties for sale at auction. It is no secret, that properties that have been repossessed can often be fantastic purchases for investors but do your due diligence. With repossessions, there are things you need to watch out for.
Using EIG to Find Properties at Auction
- Part 1: Using EI Group to Discover the Best Properties at Auction
- Part 2: Spotting Bargains in Future Property Auctions
- Part 3: Country Wide Property Auctions and What to Look For
Welcome to the Second Video on EIG Property Auction Tool
Hello and welcome to the second part of our series on Essential Information Group (EIG) and how to find the best deals at property auctions, across the UK.
Of course, we based in Manchester so that’s where we are going to be focusing on in this particular video.
Now, in today’s video, we’re going to be looking at a particular filter set, to find very good qualified properties that are going to auction with a good reason for sale.
In other words, today we are going to look at finding repossessions.
Repossessions, historically have been seen as good opportunities, properties you can buy for a good price.
Also, sometimes repossessions are properties that you can add value to with a refurbishment, depending on the location and the condition of those properties.
But, ultimately, repossessions can also have some other great benefits when you’re purchasing them one of them simply being able to understand the genuine reason for sale. With a repossession, there won’t generally be anything hidden or untoward going on.
Because there can be problems with properties, going to auction. Sometimes properties are sold at auction because there’s some inherent structural issue or some legal problem.
Now, that’s not to say that this won’t definitely be the case with repossessions but, ultimately, when you understand what the vendor’s reason is for the sale, when you know and understand that it’s for a genuine reason, like a repossession would be (because an owner has defaulted and the lender has repossessed) then you know that a property is being sold for a legitimate and genuine reason.
So, today we are going to focus on repossessions and how to find them at auction.
Because looking for repossessions using traditional search portals like Rightmove and Zoopla can be hard. It can be difficult to pinpoint which properties have been repossessed or not.
Certainly, with Rightmove and Zoopla, you don’t have filter sets that allow you to easily search, whereas, with Essential Information Group, you do.
So I’ll show you exactly how to do that, now.
Finding Repossessed Property Using EIG
Now, first what we need to do is move the properties that we had saved from our original search from our shortlist, into our portfolio so we don’t lose them.
Those initial listings are still potentially good ones to have. There are still properties that could work, and we still want to do some further due diligence on them.
So, that was the first video that we did, which is where we showed you the basics of how we use the Essential Information Group tool.
To do that, to add them to our portfolio, we go to our settings here. We click on shortlist and that will bring up all our original listings.
There are two ways that we can do this. We can click on the icon here and save this property to one of our portfolios. That can be done on a case-by-case basis. Or, there’s an easy solution here at the top, which is the ‘convert to portfolio’ option.
So let’s set up a portfolio here. Let’s call it ‘Manchester Recent: Recent Properties to Shortlist’. And if we click on save, well that should add all those properties into one portfolio.
If we want to see what that portfolio looks like, we click on our account and go into ‘portfolios’. You can see that the portfolio has now been created with all of those property listings in there.
That’s great because it allows us to go back to those listings later on. It’s also removed all of those initial properties from the shortlist. So, it allows us to start fresh for our next search.
So, here we want to go back to detail search and what we are looking for, specifically, are repossessions.
We can keep all the same criteria for our location and keep the same criteria for residential because they’re important to us.
But this is the section we want to focus on. So here we have residential. Click on repossession only, under the residential filter. We want to keep it as future auctions and then we can save this as an additional search.
We will call this ‘Manchester 2 – Repossessions Only’. So, if we wanted to come back and have a look at this later on down the line, we’ve got an easy way of doing that with our saved search criteria.
That search came up with no matching results. What we might need to do is just modify the search slightly. This could be because we’re searching in quite a small, geographic area.
So, let’s set this to cover a bigger area. If we set a particularly narrow search criterion, there may not be repossession properties going to auction anytime soon. Hence, the reason why there aren’t any, included on that that local listing.
So we increase the search criteria, we’re still looking at future auctions and we click search.
What that’s now done is pulled up one or two auctions. Here are three listings that we’ve got that are specifically mortgages. So, these listings are for properties that are a bit further away from our preferred area than we would have liked but they’re still in an area that can work for us.
We know a lot of investors that are only interested in buying repossessions. This is for a whole host of reasons. These investors will buy them anywhere in the country.
So this particular search, for example, is great. If you don’t have a narrow postcode, street or location in mind and you just wanted to look at repossessions across the country, you can keep the search criteria open. That way you’ll have a lot more opportunities to go out.
Now, these are all future auctions, so these are properties that are coming up to buy at auction. You can see here, the vendor is now listed as Mortgagee. Sometimes, this will change depending on the detail of who the seller is but ultimately they all fill those repossession criteria.
Now, we’ll use the same criteria as previously. So we’ll want to shortlist them first and see if they’re ones that we would be interested in considering.
All of these, from the look of it, could be ones that would work for us. So, I would add them all initially to our shortlist and then later, we can add them to a portfolio (if they pass the shortlisting initial stage criteria).
Let’s click on one of these properties. And just to recap, you can set extra search criteria for these listings such as ‘view street history’ and ‘view similar properties’.
Again, this is primarily just to show the evaluation, make sure we’re running along the lines and see what sort of properties are selling for in that local area. And, very importantly, to see if those properties have been listed previously.
So this one again here you can see it was listed for sale at a previous auction. Not just once by the looks of it, but twice or a couple of times.
So this is a property that’s gone to auction a number of times and has sold or has failed to sell.
This one was unsold. The last bid was £36,500. So, obviously, it didn’t sell at this auction but went to another auction. It went on sale at another auction, not only on a different date but also with a different auctioneer.
There were no bids for that auction. It’s gone again to a different auction. Unsold, last bid was only £33,000 and now it’s available for 35 thousand.
So the seller has dropped the price. Originally, they would have wanted £40k or they had a line at 40 thousand. They had a bid at £36,000. That’s now a higher bid then what they have received at the later auctions.
So, you can see, the kind of motivation for that sale is probably increasing. It didn’t sell at that auction, so again it’s gone back in with another auctioneer to see what he’ll sell it for.
It’s got a going price of £29,000, this time around. So there might be something inherently wrong with this property, hence the reason why it’s not selling or hasn’t sold.
The guide price here is very low so there might be an issue with the building or an issue with the leasehold or freehold on the property.
Without looking at the legal pack and without doing viewings on the property, it’s hard to say. But that would certainly give us reason to conduct further due diligence to see if this property is workable, for us.
But, hopefully, you can see how the search process works and what we’re looking for specifically with these properties.
And if we click on shortlist again, we can go back to the original properties that we’ve added to see if they would be suitable. We can also again, convert this to a portfolio. So we can call this ‘Manchester – Recent Repossessions’.
What we now have is two portfolios, created around potential properties that fit our criteria.
So the first one is just ‘Manchester Recent’. These are just lists of properties that are in the region we want to work in.
So we want to focus on the next one, which is ‘Manchester – Recent Repossessions’.
So hopefully that helps. Hopefully, that gives you an idea of how to find some very qualified properties going to auction that could be very good bargains, using the EIG tools.
In the third video, we’re going to be showing you the third set of criteria that we look at when we’re searching for potential options.
I hope this video has been helpful. I look forward to catching up with you in the next one.