Posted by jim on November 05, 2002 at 10:07:43:
I’d be interested in what the pros told you to do.
Thanks–Jim
Bucksnort: How did auction go today? - Posted by Inquiring mind
Posted by Inquiring mind on November 04, 2002 at 20:24:40:
?
Re: Bucksnort: How did auction go today? - Posted by Bucksnort
Posted by Bucksnort on November 05, 2002 at 07:36:19:
Well, first, I want to say that I received everyone’s info and it was GREAT ! I have run into Federal Tax Liens several times and stopped at that point.
Second, I have to admit: I did not attend the sherriff sale. Reasons: I am in the rat race with 2 vacation days left the rest of the year.
I was in contact with several investors verbally over the weekend.
There were SEVERAL ways that the deal could have worked. I wish I had checked on this one a week earlier.
In order to do this deal, I really needed cash. BIG problem was, I was not able to have the tenants out PRIOR to purchasing the property. The house is still lived in, but nobody would answer doors or phone messages over the weekend. I couldn’t work it out with the people. (Did I mention the lady being foreclosed upon was the agent who selling all of the houses nearby over the past 5 years.)
Anyway, I really needed a cold cash investor who was willing to take a risk…possibly up to 85K…maybe only 55K…then we could have kept trying to contact the “previous” owners and helped them move. Maybe help them with their rent if they leave the house in nice shape 
The house is worth 170K, if left in good condition. Minimum, it would sell for 160K like hotcakes. Nothing was on the market over like 48 days.
I could have done as some suggested and gone ahead and bought at the sale the second mortgage for about 40-45K (if I was the only bidder) Then I could have tried to purchase the redemption from the IRS (I was not aware of that prior to Ron Starr and JimT57 posts…JoeK also posted EXCELLENT info)
What are my options now ? Well, I well check on-line within about 10 days and see what happened to the deed. Who did it go to ?
If the bank took it back, I already have their name and number. I will contact them. A lot of these calls to banks are difficult to accomplish when working M-F from 7-3:30.
Yes, I have excuses for not attending. Yes, I contacted 2 money people. Was anyone willing to take a risk ? No. They wanted the property vacated prior to footing that much money. Would I have done it had I had the money. YES.
I decided to save my 2 days in case I need to close on another deal by the end of the year. I have a rehab in progress right now and am looking at others.
I may even run into some more preforeclosures. I started building my system up, again, last night for that.
Hopefully I’m not disappointing everyone who took their valuable time to answer my questions. I now know TONS more than I did.
To be honest, I’ve missed, easily, 250K worth of good deals due, this year,due to not being fully prepared for the opportunity when it presented itself. You can’t steal in slow motion and you need to know a deal when you see one. Pursue it till the end, keep checking it, until it sells.
Again, sorry to Joe and Ron***Starr, and all the others who took the time to try and help. I feel like I let people down, and I did. I am a man possessed and will continue to make it in this game.
This property is still a possibility, especially if the people get kicked out of there. We’ll see how it goes.
Anyway, I’m looking for new ones.
Brandon
Re: Bucksnort: How did auction go today? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on November 05, 2002 at 14:39:54:
Brandon--------------
You don’t owe me anything. Except maybe 10% of the profit of your next 5 deals. ---Joke Alert… You have been assualted by an attempt at humor …Joke Alert--- Seriously, you did not cause me to lose any money. And I have not lost any sleep worrying about you.
I am not enthusiastic about beginners working foreclosures. I have an article on the topic in the money-making section. Foreclosures can be very profitable. But, knowing about the IRS lien situation is just one tiny part of what I think an investor should know who is investing in foreclosures. If you plan to invest that way, I recommend spending many months studying the foreclosure laws of your state, including court decisions. Also, the legal priority of liens in your state. Spend time learning out to evaluate a house from the outside. Learn to do title researcha quickly and accurately. Talk to a lot of people in the field.
The area has huge profit potential. And huge risks. And it is very difficult to do with a full-time job, unless you have flexible hours.
Good Investing***Ron Starr