Looking for any courthouse steps purchase strategies. I am a fairly seasoned real estate investor. I have been studying for the last 2 months what is going on out here in the Portland Metro Area courthouse steps auctions. Basically wholesalers are buying up properties at fantastic deals and flipping the properties to local investors/homeowners for HUGE profits. I have finally nailed down the agonizing detail of making sure about the title as to who is foreclosing, and liens that abound, ie. uncle sam. What I am wondering is how is it that these people are taking the property they are purchasing and getting loans on it immediately as to replenish their cash flow? It seems a few have an unlimited amount of $$$$$ to purchase these house. Out here it is nothing to pay 150K to 200K and up for each property.
I am ready, funded, and looking for any of you sharpies that have purchased this way to give me any tips that have worked for you! Thanks in advance!
Biggest thing as the new guy on the court house steps is to be aware that investors that have been working that market and have "Claimed thier territory" will work to try to weed you out as competition.
Beware to not get caught in a bidding war as these experienced investors will try to bid you up and drop the property on you at a greatly inflated price, know your market, the comps and when to say when; after all there is no love in real estate investing for the property, just the financial gains.
Beware as these guys will bid you up ten, fifteen or twenty thousand more than a property is worth and jump out trying to break you and remove the competition.
Patience is the name of the game here, don’t be in a hurry or feel like you have to have that property or it will be your downfall in the auction game.
Most experienced investors know there are opportunities for everyone but you may not end up with your first, second or third choice.
Thanks Gold River! I have been to quite a few auctions and notice them doing exactly what you are warning me of! I only arrive with the max amount of $$$$ that I am willing to spend for the property after doing my due diligence.
I am following courthouse auction for last 12 months. I think I dare to wet my feet into it. I have many confusion, many questions. I like to meet other non-pros in this effort and work like a team. I bet you are also scrambling around for info like me. Please ping me if you want to discuss risks, issues and other learning. You can send me email at “z_mah” in @yahoo.com address.
The key is to not only be willing to bid at the auction yet you also want to allign yourself with Realtors, Investors and Bird Dogs/Wholesalers that are doing short sales and pre-foreclosure work. These people will bring you the deals that they didn’t get done and might need someone to bid at auction for them. At this point in the game they will take a few hundred dollars as a fee and you already have a in with the Homeowner. This will make the eviction process easy. Also while you are bidding at auction look for properties with a large second mortgage. As we all know 95% of Seconds will not redeem after auction. If you have the cash ready and waiting there are just as good if not better deals working Short Sales/Pre-foreclosure market and simply buying out the notes. Don’t get me wrong bidding at auction is a ton of fun. Yet the only time I do that is if I got the Short Sale to late and can get a smoking deal on a property.