Posted by Brian_wa on April 14, 2007 at 12:08:12:
I actually hired an escrow company to handle the transaction. For something like this, it’s better to spend about $1000.00 and not have to worry.
As in any transaction, there must be signed agreements and the escrow company handled all of that…
All you have to do is contact an attorney that also does escrow and ask for his help along with his fees…
Brian
At the auction today - Posted by Brian_wa
Posted by Brian_wa on April 13, 2007 at 20:56:34:
As some of you may recall, I bought 2 notes from a lender a few weeks ago. Well I went to the court house today to protect the position of my two notes.
I bought the 2 of them for 231k altogether. The combined face value for these 2 notes was about 300k. With private money fees and everything else, it came to about 247k. House is worth about 290k to 300k in as-is condition. If one spends about 15k to fix it up, one may be able to sell it for around 325k.
With wishful thinking, I was hoping that someone would bib to 270k. This way, I’d get cashed out immediately and make about 23k with little or not effort. To my surprise, the bidding went all the way to 280k.
Where do these investors get the money? Why would they bid so high? I just don’t get it. Should I find some ways to try and market my wholesale properties to these people?
Brian
Re: At the auction today - Posted by Dave T
Posted by Dave T on April 16, 2007 at 14:27:57:
Why do you assume that the winning bidder is an investor?
The foreclosure auctions I have been to recently were attended by investors, but in each case the winning bidder was an owner-occupant buyer.
Re: At the auction today - Posted by Natalie-VA
Posted by Natalie-VA on April 14, 2007 at 09:43:06:
Great job Brian! I can’t tell you how jealous I am. I’ve been trying to buy notes in default with no luck so far.
About those investors at the auction. Remember that they get involved in the bidding frenzy. I’ve tried to sell a few houses to auction investors and found that they wouldn’t pay me near the prices that they would bid at auction. I would be interested to see if you have different results.
–Natalie
Re: At the auction today - Posted by Edwin
Posted by Edwin on April 14, 2007 at 01:27:37:
They bid that high because they are DUMBASSES! Also known as
amateurs, or so hungry for an “investment” that they will cut their
profit margin to the bone. You can’t win when when you’re competing
with idiots like this
Re: At the auction today - Posted by IB (NJ)
Posted by IB (NJ) on April 13, 2007 at 23:30:17:
Yeah check out the deeds of the “Investors” who purchased the properties and send them a letter and your business card.
Ib
Re: At the auction today - Posted by Brian_wa
Posted by Brian_wa on April 14, 2007 at 11:18:34:
You shouldn’t be jealous especially when I have been able to do it twice only. It seems that Homecomings is pretty investor-friendly.
I’m gonna try to find some ways to work with them. Sometimes they’re reluctant to get out of their comfort zones. Being able to bid against other bidders confirmed to them that they’re doing the right thing because other investors want what they’re trying to get, too.
Brian
Re: At the auction today - Posted by Rich - Seal Beach
Posted by Rich - Seal Beach on April 16, 2007 at 08:11:35:
I find it interesting that you call your potential customers dumbasses.
Best of luck.
Rich
Re: At the auction today - Posted by S Fl Rich
Posted by S Fl Rich on April 14, 2007 at 11:37:44:
From the looks of it…Brian found a way to win with idiots like that…
We have similar bidders at our local auctions, and I’ve found that buying the property pre-foreclosure, and then wholesaling to these same guys that are willing to pay nearly retail has proven to be a pretty profitable strategy. It makes it easier on them too, because they don’t have to compete with other investors at an aution.
Re: At the auction today - Posted by Joe Kaiser
Posted by Joe Kaiser on April 14, 2007 at 03:59:33:
I suspect you can win if you’re the one doing the selling . . .
Re: At the auction today - Posted by Lee in Louisiana
Posted by Lee in Louisiana on April 13, 2007 at 23:59:28:
RE: In Reply to: At the auction today posted by Brian_wa on April 13, 2007 at 20:56:34:
Yeah check out the deeds of the “Investors” who purchased the properties and send them a letter and your business card.
Ib
Do not forget to look up their phone number …
AND CALL THEM, Meet with them.
Make sure that if they accused you of being an investor they have enough information to convict you!
Lee
in LA
Re: At the auction today - Posted by Natalie-VA
Posted by Natalie-VA on April 14, 2007 at 12:05:31:
Brian,
Do you mind sharing how this process went?
Did you just wire them the money and then they sent you an assignment to record?
Did you have some sort of written agreement before you released the money to them?
Did they send you the original note too?
Did you have an attorney review their docs for you?
I just want to be prepared when the time comes. I thought about having an attorney do an escrow, but I’m not sure if that’s overkill or not.
Thanks for sharing.
–Natalie
Re: At the auction today - Posted by Edwin
Posted by Edwin on April 16, 2007 at 11:14:49:
Do you have a more descriptive word, Rich? (And that’s not to say I’m
not also one from time to time). But they are not my customer’s. They
are my competitors, and I don’t like it when one of them bids way more
than a property is worth, negating all of my time, research and effort to
show up at the auction. Maybe that’'s why bidding at auctions often
isn’t as profitable as it used to be. Too many amatuers there who don’t
know what they’re doing.