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dean10
61 Posts |
 Posted - 08/09/2008 : 10:56:56 PM
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| How do you get the list of foreclosures that are going to be auctioned off? I saw one where you can go and participate in bidding on homes being auctioned off. I have some money I would like to invest in a few of these types of deals and I would like to pick up one in San Deigo and one in Orange county. How do you get the list ahead of time, before the auction? Thanks, |
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rtrefflich
3414 Posts |
Posted - 08/10/2008 : 12:08:09 AM
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| Look up county records for NOD's and for trustee sale dates. Most of the time you can get a list from your title company |
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hmorales007
228 Posts |
Posted - 08/10/2008 : 08:14:11 AM
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| Go to one of the major auctions like U.S. Home Auctions. This way you can buy a home at "auction prices" as the top bidder of a couple of thousand tools. |
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johnhoefer
429 Posts |
Posted - 08/10/2008 : 3:52:07 PM
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| I think you are too early. If you consider another 5-10% downside, plus 5% inflation, you are not in a good place to buy as an investor. The upside is a gradual climb 18 months or more into the future, the downside is now and near guaranteed. Lots of product out there for rent at low prices. I would say wait until the beginning of 2009. But good luck for what its worth. |
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slants
4274 Posts |
Posted - 08/10/2008 : 4:12:50 PM
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quote:
Originally posted by dean10
How do you get the list of foreclosures that are going to be auctioned off? I saw one where you can go and participate in bidding on homes being auctioned off. I have some money I would like to invest in a few of these types of deals and I would like to pick up one in San Deigo and one in Orange county. How do you get the list ahead of time, before the auction? Thanks,
You do realize trustee's sale auctions are cash only? Unless you have capital to bring in cashier's checks for the entire amount of the opening bids and can bid up incrementally against other investors, your option is to go to owners' auctions (pre and post foreclosure), not the foreclosure trustee's auctions. Even if you can pay cash, there's the question of whether it's a smart investment strategy to pick up one property at a trustee's sale in cash when you can obtain financing and leverage many properties for the same cash investment.
Here is one of many private auctions:
http://www.williamsauction.com/Search/searchResultsState.aspx?Status=1&StatusID=1&SellLocType=all |
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SoCalRay
2698 Posts |
Posted - 08/10/2008 : 4:19:51 PM
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IT is not a good idea to buy on the court steps right now.
Whoeever is buying there is over paying.
I have closed 10 purchases since April involving bank owned and every single one of them were bought from the bank for an average $75-90K less then what it was being auctioned for on the county steps. |
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crankyusi
660 Posts |
Posted - 08/10/2008 : 4:44:33 PM
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| There is also a risk issue when buying at foreclosure since you are buying without title insurance. You may not know what's senior to you or if you have other liability until after the fact. |
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dean10
61 Posts |
Posted - 08/11/2008 : 07:07:02 AM
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| Yes, I have the cash, so you guys say the consensus is to buy direct from the bank? |
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slants
4274 Posts |
Posted - 08/11/2008 : 09:47:49 AM
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quote:
Originally posted by dean10
Yes, I have the cash, so you guys say the consensus is to buy direct from the bank?
If the starting bid at the trustee's sale is $300,000, you will need to arrive with a cashier's check for $300,000 + additional cashier's checks in increments of say $500 to bid up if you meet with competition. You will buy them sight unseen and must complete all title research for senior/IRS liens that won't fall off after foreclosure since it's COD without title insurance. An investor nowadays can net lower prices from a shortsale or as an REO than at trustee's sales with full inspection of property condition and negotiations for repairs and all other rights and protections afforded a buyer. With the $600,000 cash you would tie up to pick up 2 properties at auction, one can put down 25% and finance the rest and leverage $2.4 mm of real estate instead of $600,000. Seems like a no brainer. |
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