trustee sales - Posted by Steve

Real Estate Investing
1

Posted by Rob on July 10, 2001 at 18:21:50:

How come someone can lose 25K in a T.S. auction? Do they know which loans they are buying? This is a little more complex game here in Trustee Sales. You have to do your homework in & out. From title to physical interior to exterior of the property. If you can get in the property, and able to check it out good then you are a REAL PRO!

At the sale, you have to study the players there. What they do, how they bid, Why they didn’t bid.

Can you just do this with all the cash in the world?
I doubt it. There is an investor who have millions where I am from, but he can’t win, or buy a decent deal. Why? There are tricks to the trade.

Remember, the money you think is a lot of money. May not be a lot of money there. Everyone I know carry at least 100K to 250K in their pocket at the sales.
How much CASH are you talking about? Is it enough?

Rob
415 716-8261

2

trustee sales - Posted by Steve

Posted by Steve on July 09, 2001 at 05:17:21:

Hello,
I’m just beginning to research all of the investment possibilities and have read some of the notices in the newspapers regarding trustee sales. It seems that these sales take place in the offices of the attorneys designated as the trustees. Can anyone tell me how these sales are handled? Do they usually start the bidding on these properties at the remaining balance of the note? Are the properties usually gobbled up by the big money investors, or do I stand a realistic chance of winding up with something? I have only a few thousand dollars to start with. What are some of the pitfalls of bidding on properties this way? Any information would be greatly appreciated. Thank you.

3

Re: trustee sales - Posted by JT - IN

Posted by JT - IN on July 09, 2001 at 07:08:52:

Steve:

Sorry to inform you that you do not have enough resources, (cash), or enough experience to be considering trustee sales. With that said, you do have enough of both to attend some of these sales, and begin learning “first hand” about what goes on there. Attend 10, 20 or 30, if you relly want to know, because there are many things to learn and there is not enough space on this board to educate you on the pitfalls of such activity. It is not for the faint of heart, (or wallet), and definitely NOT for the new guy/gal. However, if you educate yourself, as to the nuances of Trustee Sales over the next couple of years, you will no longer be a new guy, and maybe you will have put together some other deals, in order to fund a Trustee Sale purchase.

Wish I could have provided you a “nushell” of info that you could walk in make a deal with, but it just doesn’t work that way in the market of foreclosures.

JT - IN

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Re: trustee sales - Posted by Steve

Posted by Steve on July 09, 2001 at 13:01:58:

JT,
Thank you for the response. I suspected as much and will take your advice and attend some trustee sales to get a good feel for what goes on. I appreciate the information.

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Re: trustee sales - Posted by wayne

Posted by wayne on July 10, 2001 at 02:56:34:

He is dead on about the complexity of foreclosures. If you have straight cash to purchase a foreclosure for a quick resale…then you dont need to know jack…You can find good deals with cash purchases…I am finding it is the easiest way to do anything in real estate, the more cash you bring to any table with sellers, the more receptive they are to the remaining balance and how it will be paid.

wayne

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“You don’t need to know JACK” ??? - Posted by JT - IN

Posted by JT - IN on July 10, 2001 at 11:15:26:

Wayne:

You are sadly mistaken here, about “not needing to know jack”, if you have the cash to buy foreclosures.

Yes, you are right, they are confusing and loaded with pitfalls, however, loaded with profit making opportunities, “IF YOU KNOW JACK, JILL AND THE MAN THAT RAN UP THE HILL” ! Cause, if “you don’t know jack” about foreclosures, even with all cash, you will surely be "seperated from your $ JACK $ " before you know it !!!

There are so many stumbling blocks in the FC market, and even those that attend sales and buy properties regularly/successfully, don’t realize some of these pitfalls, until it is too late. Know some who have bought FC RE, thinking it is “no big deal”, and expecting a clear title, only to find out they need to pay off a lien or two, because the Plaintiffs Attorney didn’t do a thorough job. Tuff, Pay-up Mr/Mrs. Investor, you should have known better!

I specialize in FC sales, regularly buying properties at Sheriff Sale, and still learning necessary cautions, by any prudent investor, endeavoring to buy FC proeprties. I will never learn everything, but I continue to attempt to master all the nuances, and try not to oversimplify the complex, because I know that this leads to troubles!

Just the way that I view things…

JT - IN

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Re: trustee sales - Posted by Steve

Posted by Steve on July 10, 2001 at 05:57:23:

Thank you for the information, Wayne. It’s greatly appreciated. I’m just going to “bide my time” and save my pennies for a few months while exploring all of the possibilities. I think I can save ten thousand or so within the next few months without “financially herniating” myself. Maybe then I can do as you suggest. Good investing!!