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Buying Shares at Auction: Are You Out of Your Mind or are You The Einstein of Business?

Here we are again talking about real estate investment, but this time we take it from another perspective.

The Question is Simple:

According to some, it is stupid, because the reasoning is this: I go to an auction to buy a part of the property, I spend money, in the end, I become the owner for 50% – if I like a luxury – and then that I do it? Am I selling half the property to another? And who buys it? The moral of the story, if I buy a share of the property, I’m a fool!

Yet things are not exactly like that, and if you read the story I am about to tell you, you will realize that buying a percentage of property can have sensational implications.

Here’s How Much I Earned by Buying a Real Estate Stake at Auction

Years ago, I bought 50% of a property during an auction, paying € 8,121 for it. You read that right: my investment was only 8,121 euros, and I became co-owner of a good property together with Stefania M.

Keep in Mind That a Real Estate Investment is Such Only if You Quickly Resell

what you bought, so I immediately contacted Stefania M. and proposed to buy my share for 30,000 euros. In this way, she would have obtained full ownership of the house, and I would have earned about 22,000 euros from it. But I had reckoned without the host because Stefania refused the offer.

The second possible scenario was to reverse the parties, and then I proposed to sell me her share, again at 30,000 euros, but this time to I received a refusal, and I only had to go to court. I then decided to go a long way by starting a court case, and I hired an experienced lawyer.

A Fundamental Rule To Follow in These Cases:

legal times are very long but can be significantly shortened if you choose a lawyer specialized in the real estate sector. Avoid your cousin if he is a lawyer specializing in traffic accidents, and avoid your best friend’s brother if he deals with other types of disputes!

The history of this investment lasted from 2008 until about a month ago. The house went up for auction, a family member of Stefania M. bought it entirely for 105,000 euros, and now I’ll also do two calculations on the deal I made:

But That’s Not all

In reality, my earnings were greater than 44,379 euros. When I asked the court for the judicial division of the property, the judge assigned a technician (CTU – office technical consultant) to identify the flat’s market value.

I also asked the surveyor – I must say excellent – an evaluation of the average rents for the house’s area.

In the end, therefore, I also obtained from the judge the payment of the rents from the moment I became co-owner until the sale of that property to third parties (about 7 years of waiting!). And the judge agreed with me because Stefania M. had used the property for all those years, preventing me from doing the same.

Now you tell me if whoever buys shares at auction is a fool or someone who knows his stuff. Remember, however, law 80/2006 has changed the rules and prohibits the sale of real estate shares.

If You Want To Invest By Buying Property Percentages, You Have 2 Ways:

And if you have already bought real estate shares and you want to tell me how it went, leave me a comment and let me know yours!

Ps: I don’t tell you what happened when my wife found out that I was the co-owner of a house. I  had to suffer the fury of which only a very jealous woman is capable, who discovers her husband in the act of crime with his lover … but it was only real estate shares, no adultery. Business, simply business!

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