It was quite the scene. A crowd of 1,000 bargain hunters spilled out of the historic Shelbourne Hotel and onto St. Stephen’s Green. Police temporarily put a halt to bidding as the swollen crowd blocked traffic in Dublin’s leafy Georgian city center.
This was a big deal: Ireland’s first fire sale auction.
There were deals to be had. Properties were snagged for cents on the euro. Like 30,000 euro ($44,500) for a three-bedroom home in the midland town of Mullingar…a city center condo in scenic and culture-filled Galway city for 70,000 euro ($104,000)…and a retail unit a short stroll from where this auction took place in central Dublin for 57,000 euro ($84,500).
Don’t worry if you missed out. The next auction takes place on July 7. I expect the deals to be even better. In Toronto next month, at our International Real Estate Investment Forum I’ll dissect the catalogue of opportunities (this is a market I have been an active investor in for 12 years), pick the best and show you how you can even place an offer from your armchair.
Ireland’s boom turned to bust as its banking system imploded and the real estate industry and market crashed. In the boom there was much too much construction. Today only a very few brave souls have an appetite or funds for real estate. This is a classic crisis or distressed opportunity. There is “blood in the streets”. That’s why I have added “Distressed Fire Sale Auctions in Ireland” to our roster for this Toronto event.
There’s junk out there that will always be worthless. The nuggets, though, are to be found hiding in the debris. I’m talking about quality construction in blue chip locations that will always have a value. Stunning historic buildings that will always retain intrinsic value. Or, buildings with long term leases from stable tenants.
The July auction will feature several farm and home lots. This might be your chance to be a gentleman farmer in the old country. Former “fat cats” are being forced to sell off weekend getaways by the seaside or in the rich green pastureland of horse country. If it’s a yield you are after, there will be rented properties go under the hammer with yields north of 9%.
It’s not just in Ireland where we can buy distressed real estate for cents on the dollar. Maybe a sunnier clime and a picture-perfect Caribbean island is more your thing. Or, Central America’s most vibrant and business-friendly city. Here, U.S. buyers bought at the height of the boom…frequently using funds from a line of credit on their home. Now, they are feeling the squeeze and need to sell. But, buyers are thin on the ground. That’s why we can swoop…and pick up stunning ocean view or cosmopolitan city property for cents on the dollar.
I hope you can join us in Toronto this June 9-11. I’ve devoted an entire block of the schedule to distressed opportunities in some of the world most stunning locales. Get the full details here.
Editor’s Note: Ronan McMahon is the director of Pathfinder (IL’s preferred real estate advertiser).