Some investors call it “wholesaling real estate.” Others refer to it as “flipping houses.” Regardless of the term you use, the bottom line is the same: You can make big bucks from property you don’t own!
Just Four easy Steps!!
Step one: Find a property
If you are advertising correctly, your phone will ring off the hook. Find a property with sufficient equity and get busy. Let’s use the example of a property worth $100,000 that you negotiate down to a buying price of $55,000. You fill out your sales contract with the homeowner as the seller and you as the buyer. We like to use contracts from the Board of Realtors. They are easy to use, and homeowners are familiar with them. Call your local Board of Realtors to see if they sell contracts to the public. If not, most office supply stores sell real estate contracts. One of the first lines on the sales contract is a place for the buyers’ name. Put your name and the words “and/or assigns” after it. This will allow you to assign the contract to the rehabber.
To make the contract binding, you have to leave a deposit with the homeowner at the time of signing. We typically leave a $10 deposit. This way, if we are unable to wholesale the property, we are not out a lot of money. $10! Who would take that? Everyone! When we first started asking homeowners to take a $10 deposit, we thought we’d get kicked out of the house. To our surprise, no one gave us any grief. If you say it like this: “We typically give a $10 deposit and close in 45 days. That won’t be a problem, will it?” They always say, “Okay.” The only reason a homeowner won’t take $10 is because of the way you present it. Speak with confidence.
Step two: Start building your buyers list.
Build a list of rehabbers who will buy your wholesale properties. First, run an ad in the paper that says something like:
Handy, investor special
Great deal for rehabbers!
Thousands below market–Won’t last!
When investors begin calling, get their information. Take their name, number, fax, and email, and put that information in a database. Then the next time you find another deal, you’ll have a list of buyers. Run your ads for sixty to ninety days. Even if you sell your property the next day, keep the ads running. Tell the investors that the property sold; however you are working on another, and ask if you can you call them once the deal is finalized. They will always say yes. Every time we get a deal under contract, we fax and email our list and boom–the deal is gone. Remember, the faster you find a buyer, the faster you get paid.
Step three: Negotiate a deal with your rehabber
This is how a wholesale real estate transaction might look. Say the house is worth $100,000 in good condition. The homeowners are distressed–either they are behind in their payments or facing foreclosure. They have to move quickly. Say they owe $50,000 on the property, and they need $5,000 to move and pay deposits for their new place. (Remember, you know this because you have asked them what they are seeking as a result of your assistance.) You offer them $55,000, and they accept. The house is worth $100,000 in good condition. You figure it will take approximately $15,000 in repairs to get it to market condition. You have a rehabber lined-up, and you know he’ll pay 65% of the retail value. You decide to sell it to him for $65,000, making $10,000 as your assignment fee. The new price is $55,000 to the homeowners and $10,000 to you for putting the deal together. The rehabber will fix-up the property and make the difference between the $65,000 and the $100,000 fair market value. If the rehabber does a good job on the property and keeps rehab costs low, the potential profit is $15,000 to $20,000. Not too bad either!
Step four: Prepare for closing
Using your investor-friendly title company, move towards a closing. The beauty about title companies is that they do all the work for you. All you have to do is find the deal, wholesale it to your rehabber, and go to closing. The title company does the rest. Folks, it’s that simple! Wholesaling real estate is fun, and the money is quick. Can you see why I love it so much?
1. Estimating rehab costs
The biggest question I got was how to estimate the cost of repairs so you can figure out what to sell the property for. When I do a walk through, I look at four things: roof, structure, plumbing and electrical. These are the biggest expenses AND all require permits.
• Roof: Look at the fascia and sofit for signs of wood root or termite damage. Look at the top of the roof for loose shingles. Look at the ceilings for water stains or discolorations or holes.
• Structure: I walk around the property looking for cracks in the foundation. If you’ve got a structural problem, it’s expensive ($7,500 – $30,000) to repair and could kill your deal.
• Plumbing: Look under the sinks in the kitchen and bathrooms. Look at the floor to see if there are any uneven spots and shower stalls for leaks. Most of all–look outside the property for any large trees with roots that are growing under the house. That could cause major plumbing headaches.
• Electrical: Fuse box or breakers? How long since the electrical was updated? Check the air conditioning unit. I always get an electrician to check out the house if I am not sure.
Also, tile or carpet? Depending on the area and demographics, folks prefer one or the other. Best to know which one. Assume you will have to paint inside and out and do some minor landscaping. Don’t forget to take the pulse of the neighborhood. Pride of ownership or run down properties? Close to public transportation, shopping, and schools? If you break it down like this, after a while, you will know what things costs, and you can estimate repairs before rehabbing or wholesaling it to another investor.
2. To Handyman or no handyman?
There are two ways to rehab: Do it yourself or hire someone. There are pros and cons to both. If you can do it, you save money on labor. The downside is that if you don’t fix according to code, you will have major problems. If you have a day job that only leaves you nights and weekends. It might drag on for months. With rehabbers, you have the cost of labor; and you have to make sure they do a good job; but they can do it in a lot less time than it would take you. That means you sell it faster and move on to your next deal. Now, I only work with rehabbers who are referred to me by other investors. If I have to use a new one I don’t know, I always give them a small project to see how they do. If satisfied, they get more work. Otherwise, I show them the door. We currently have three crews, and we pay them well. Getting doughnuts and coffee for them is a nice gesture when you stop by in the morning. You must manage the project yourself. I inspect the properties daily. You can them in milestones or weekly payments. With milestones, when they finish the kitchen, they get X amount; the bathroom, X amount, and so on. Weekly payments are fine as long as they don’t get behind. If you’ve paid the rehabber 75%, but he’s only completed 50% of the work, how are you going to handle this? This is why you need to stay on top of them each day.
3. Logistics, supplies, and expenses
Unless you’re with Home Depot or Lowe’s, pay your rehabber a bit extra to help you get the supplies. Of course, it is not uncommon to make four or five trips daily to get supplies. Most rehabbers expect all the supplies to be there for them, but you make sure they bring their own tools for the job. With the different projects going right now, we either give each one of our project managers a $500 gift card from Home Depot, or will set up a special account for those larger projects. They give us all the receipts. When they run out, we get them another gift card. We pay them a bit extra to get the supplies they need. They have been working for us for a while now, so we trust them. Otherwise, we would make the trips ourselves, and we need to focus on acquiring more properties. If you’ve got properties that are fifteen miles apart, you have the travel time to consider. I am fortunate that most of my rehabs are within a few miles of each other–easier for me and easier for my crews. Make sure you keep separate invoices and receipts for each property. When I get supplies for two or three properties, I have to get separate receipts. Your accountant will thank you. Finally, don’t ever get windows, tile, or carpet from Home Depot. Remember, you pay for the convenience and that is about double what I pay for the “mom and pop” stores. For example, I just put in twenty-three windows on one property and nine on another this past week. At Home Depot, the cost per window was $105 (I get the double-hung, white colonial ones). A smaller store: $56 per window. I made the mistake once by buying a bunch of cleaning supplies at a “mom and pop.” At Home Depot, it was half the cost. So, big ticket items find a “mom and pop,” but for everything else, use Home Depot or Lowe’s.
4. Keep a low profile
When you are rehabbing, cover all the windows. Keep the doors closed. Take your signs off the car when you are there. Don’t let your rehabbers show up in commercial vehicles. Keep the music to a minimum. Don’t have more than two cars in the driveway. Why? Code enforcement. This past week, they showed up at one of my properties and cited us for the roof. The roofer had started work before getting the permits, and my crew had just arrived to begin work on the property as the city official showed up. What a case of lousy timing. Don’t ever let them in your house! We will get this rectified but it is a pain in the butt.
5. Permit issues
Speaking of permits, you really need them for structure, roof, electrical, and plumbing, and in many areas, windows. Some you can do on your own on the weekends and avoid permits, but you are playing a cat and mouse game with the city. I am not advocating one or the other. You have to weigh your risks and decide what to do.
6. Sign in the yard
Don’t start advertising until you are 95% done with the house. Some people will say advertise the moment you bought the property. The problem for me is having potential buyers come into a property I just gutted–wires hanging everywhere, broken drywall on the floor, and holes in the ceiling. Most won’t make an offer until the work is finished. And, they are a distraction to me and my crews. I need to focus on completing the rehab, not trying to sell it. Of course, I know the house will sell, so I am in no hurry to do it wrong. If you put a sign out in the yard before the house isn’t ready to show, tell them you will call them back when it is ready. So, when you are indeed ready, you will have a list of 20 or so potential buyers. I also put an info tube on the SO sign to cut down on useless calls. By doing this, we rarely pay for advertising when we have a house on the market. Our houses sell fast. One idea a friend had was to drop flyers to the neighbors to let them know the house was available and to pay a $250 referral fee. Who wouldn’t want to make some money and have their friends live around the corner? See, even I can learn a thing or two from a newbie!
7. Negotiating with homeowners
If there is enough room in the deal, I have no problem working with Realtors, but I only pay 3%. Most will say they have a buyer for you. Now, if they have a problem with 3% and want to list it, I give them one of two responses. First, would you rather make 6% of nothing or 3% of something? Second, I tell them I will pay a listing service a couple of hundred to throw it on the MLS. When you do have a qualified buyer, it means nothing to me unless the underwriter has approved them. If they use their own mortgage broker, I speak to him personally. I usually tell them they have 30-45 days to close. The contract says that if they can’t provide a letter of intent from the underwriter stating the buyer is approved within x amount of days, I have the right to replace the mortgage broker with one of mine. It motivates the heck out of them. I put that in the special clauses section along with any other terms negotiated between me and my buyer. Remember, you need to control the deal.
8. Seasoning, corporate sale, and taxes
Many ask how to avoid the seasoning issue? The answer is simple: I tell buyers’ mortgage brokers up front that there is a seasoning issue, and they better use a bank that doesn’t care about seasoning. The big banks won’t do the deal, but there are plenty of small community banks and mortgage companies that will. Second, when I have a contract on the property, I either purchase it with my LLC or I quit claim the property into my LLC. Why? When I sell it, the capital gains taxes hit my LLC, not me personally. That means if I profited $50K on a deal for the year, but all my combined expenses for everything under the LLC came to $45K, I only pay taxes on $5K. Neat little trick. That’s why I have a good CPA. Find one who specializes in creative real estate investing. Don’t forget to tell your buyer’s mortgage broker that it is a corporate sale. He/she needs to know this.
9. Buying from wholesalers
I really don’t care what the wholesaler earns, as long as I earn the money I want. The higher the price, the higher the profit should be. Many say that a good rule of thumb is 65% of the ARV (After Repair Value) of the property. I will tell you why this doesn’t work for me. Let’s say you brought me a house worth $100K retail, you have a contract with the owner for $58K, and you want to flip it to me for $65K ($7K assignment fee). I look at the property and see $20K worth of repairs required. So, $65K price + $20K + closing costs + holding costs for six months + marketing costs = ??. That’s a lot less then $15K of profit. After closing costs, holding and marketing, there is really no deal there. Now, if the property needed less then $5K work, 65% ARV makes sense. I can tell you that I’ve never spent less then 12K on any rehab. One property, we are into for $40K. I spend a bit more, which is why our houses sell fast. So, I base my price completely on the estimated repairs regardless of ARV. So far, it works well for me and the wholesalers we buy from do the same.
10. Using hard money and financing
I hate paying someone points on top of closing points, but if you don’t have cash, hard money is the way to go. I usually get 85%-90% LTV with 12%-14% and 2 points. When starting out, use other people’s money (OPM) until you don’t need it anymore. I am intentionally vague because it depends on how many rehabs you do each month. You have to plan, project, and budget your purchase costs, supplies, labor, holding, and marketing for worst case scenario six months. By the end of the year, my partners and I should have enough to avoid hard money altogether and still rehab two or three per month. I would like to mention is that rehabbing is not for the timid. It takes a substantial investment in time and money. If any book or course says you can do this part time with a minimal financial investment; I have only this to say. Run hard in the opposite direction.
A trustee sale is a publicly held auction where buyers can bid on real estate properties. Trustee sales are conducted when a homeowner is in default of his mortgage payment for more than 60 days. The bank or lender takes possession of the property. Owing back property taxes may also result in a trustee sale, and the taxing authority takes over the property. The primary purpose of a trustee sale is to recoup the outstanding loan balance. Mortgage contracts through lending institutions stipulate that if the terms of the contract are not met on a regular basis, foreclosure procedures can be initiated. A trustee is then appointed to take care of the repossession of the property and to sell the property at auction.
How is the homeowner notified that his property is in default?
When a homeowner defaults on his loan payments, they receive several Notice of Default letters from his bank. If the borrower fails to come up with the delinquent payments or does not work out a payment program with the lender, they will be sent a final letter informing him that his property will be put up for sale in 21 days (NOT, Notice of Trustee Sale). Anyone buying a trustee sale is legally entitled to take immediate possession of his property, so the delinquent homeowner, who might still be occupying the property, does not have much time to take stock of there situation.
The bidding process
The trustee sets the bidding at a certain price and can determine a minimum bid for each property. The price usually includes the loan balance, any associated lawyers’ fees and any other costs connected with the foreclosure. If this price is not reached, the trustee can remove the property from the auction and utilize other means to sell it. He may later decide to list the property with a Realtor®. Bidders must come to the auction prepared with cash or cashiers’ checks in case their bid is accepted. Often, trustees require a cash deposit or show that they have the ability to purchase before the bidding even begins. Trustee sales are sold “as is.” Some trustees allow the bidders to inspect the property; others may not be so forthcoming. Usually, the property title is not intact, and liens and structural issues will have to be taken care of after the sale is completed. Some states allow sealed bids while others do not.
Inspect the property
Most foreclosed properties are in need of repair and renovation. The plumbing and electricity may need updating, and the appliances will probably need to be replaced. A building inspector can provide more exact information on the condition of the structure of the house, but he may not be able to inspect it until after the bidding has ended.
“Buying at City Hall Steps”-Trustee Sale (Shark-Tank)
Have you ever been to a local City Hall or County Court house in the middle of the day, and seen a bunch of random people standing around or sitting in lawn chairs? What? You mean to tell me you didn’t know that City Hall is one of the most popular places to just go hang out and soak up sun? Believe it or not, this Motley crew (the best ones are usually the most ragged looking ) are actually waiting/hoping for the opportunity to snag up a great bargain on a piece of real estate through a foreclosure auction.
These real estate foreclosure auctions are what are known as trustee sales, (also commonly referred to as “Buying at the Court House Steps”) and are a very popular way for investors to pick up properties in today’s market.
Although trustee sales are one of the quickest and most exciting ways to purchase real estate, they are also one of the most risky for the following reasons…
1) No Title Insurance. Although many liens are wiped away after a trustee sale takes place, some remain. Unpaid property taxes and some other liens may stay with the property and the winning bidder will be responsible for them.
The previous homeowner can also effect the property. If they are behind of federal taxes the property may be subject to a right of redemption by the IRS. Other things such as lawsuits the person may have been involved in can effect the property as well.
It is also imperative that you know the position of the loan you are bidding on. One of the biggest and most common mistakes of an inexperienced trustee sale buyer is to purchase a second loan, thinking it is a first. If more is owed on the first than the house is worth you can kiss your money goodbye
2) You get what you get, and you can’t throw a fit! Unlike most other purchases, when purchasing a property via trustee sale you cannot go back and ask the seller to make repairs. If you missed something you are stuck with it!
3) You must pay cash! (Cashiers Checks) When purchasing a property via trustee sale only cash is accepted. Once you hand over those cashiers checks no cancelling escrow, or backing out of the deal. Your money is gone!
4) Quick decision making Usually when purchasing a property via trustee sale you only have hours or sometimes-even minutes to determine what price you are willing to pay for the property before the bidding begins. It is imperative that you know what you are looking for ahead of time, so you can spot a good deal when the opportunity presents itself. Research, Research, Research on what’s going on in your market so the decisions can be made quickly.
5) Current tenants and homeowners If you purchase a property that is occupied then you must deal with the occupant. You really never know how cooperative/uncooperative they will be at the time you purchase the property. I know when we drive the properties we try to speak with the owner/tenant prior to sale to see what there intention is (to fight the foreclosure or leave peacefully.)
6) Thin margins Due to advanced technology and more accessible data it is easier than ever to track these properties. This combined with the low inventory in today’s market has caused what many-seasoned trustee sale buyers refer to as “a zoo” down at the courthouse. This competition has really caused the margins (potential profit) to decrease. You really need to know your market/farm and what you can and should pay for a given property or you may end up bidding more than what will actually allow you to turn a profit. As I search the MLS I have seen numerous properties that have been purchased at trustee sale in the last few months and have now been reduced to a break even or lose money price.
Times and Locations
As mentioned most trustee sale auctions are held outside of City Hall in my area and County Court House(s) in others. Most counties actually have more than one location where the auctions are held.
These auctions will be held anywhere from 9:00 AM to 5:00 PM on weekdays (excluding specified holidays) so you will need to research times for the location which you will attend.
The Bidding Process
Properties that are auctioned off have gone through the complete foreclosure process. The trustee sale is the method at which the foreclosing lender will either sale the property, or take control of the property, and become the rightful owner (if no one bids).
Before bidding occurs the auctioneer will read off postponements or cancellations for sales, which will no longer be auctioned off that day. Once postponements have been “cried” (read) the bidding will begin.
If there are a lot of properties up for auction the auctioneer will usually have all prospect bidders stand in a line to qualify. To qualify you must show the auctioneer the amount of funds (usually cashiers checks), which you will be using to bid. If you are bidding on behalf of another individual or company you must have a notarized authorization from the entity for whom you will represent.
If there is not a great amount of properties being auctioned off, often qualifications will be on a per property basis. Bidders, which attend on a regular basis, are often not required to qualify because the auctioneer is confident they have the required funds.
After bidders qualify, the auctioneer will begin reading the property information for the property, which will be auctioned off.
Typically the “opening bid” for any given property is what is owed on the property including late/additional fees. However in today’s market, since most of the homes being foreclosed on are worth far less than what is owed on them, lenders will occasionally do what is known as a “drop bid.” This is where the opening bid for the property is dropped from the amount owed to a price more in line with current property values.
In order to purchase the property you must pay at least one penny over the opening bid. If anyone is interested in the property for the opening bid price they will usually say “penny over” meaning they are willing to pay a penny more than the opening bid. From there bidders call out what they are willing to bid on the property. There will be a minimum increment set by the auctioneer (Usually $100). Bidders bid by either saying “hundred” or they will state the amount, which they would like to bid.
When the bidding is complete and it appears there are no higher bids the auctioneer will call out something to this effect “Going once, going twice, third and final call, property sold to…” and state the name of the person who purchased the property. At which time the high bidder is required to hand the auctioneer their cashiers’ checks.
Some auctioneers require that you hand them your checks before they say sold and the final bidding is over. It is very important you know what system your auctioneer follows. I have seen several occasions where someone was the high bidder, but did not have their checks ready to give the auctioneer and someone else bid higher before the auctioneer said sold. Needless to say they either ended up paying more or losing out on the purchase of the property.
Once checks have been received the auctioneer will hand the bidder a form to fill (trustee sales receipt) out showing how they wish to take title, as well as mailing information of where to send the “Trustees Deed” and the “Refund” if any.
What to Expect/Do After the Purchase
A Trustees Deed is the document, which conveys title for a property sold via trustee sale. This should be mailed to you within two weeks from the trustee sale date. If two weeks have passed and you have yet to receive your trustees’ deed in the mail, then call the trustee. (Their phone number will be on your trustee sales receipt given to you after you purchase the property.)
Once you receive your trustees’ deed in the mail, you want to be sure to record it as soon as possible so you can “perfect title.” Perfecting Title means if you record the deed within 15 days from the day of the trustee sale it will revert back to 8:00 AM of the day of the sale, and defeat/supersede any post-sale filings such as liens BK’s etc.
It is also important to take note that when you purchase a trustee sale property you will not receive your “change” right there on the spot. This will also be mailed to you. It is therefore important to have several cashiers’ checks with you, so you are waiting to receive as small of a refund as possible.
Finding/Tracking the Sales
Most companies that hold the foreclosure auctions will have a website that you can track properties that are coming up for auction. They will post opening bids or postponements as they receive that information from the trustee. You can also call to verify the status of a property you are hoping to bid on.
There are also foreclosure tracking sites such as http://www.propertyradar.com, http://www.realtytrac.com/, and http://countyrecordsresearch.com/ that will post all of the properties and their various stages of foreclosure. These websites have some lag time and are not as up to date as the actual foreclosure service company sites, but they do gather all the information to one central location which can have it’s advantages.
Note: Property Radar and County Records Research only cover certain regions and Realty Trac has national coverage, if you are not in CA or a state in which is covered by the other providers. These sites are not always completely accurate and additional due diligence should be made to verify information given.
Since time is so limited and there are a number of properties that must be analyzed when bidding on trustee sale properties, a team is usually required if you are serious about purchasing properties at the trustee sales.
Drop Bid Searcher/Coordinator-Depending on how many properties you are checking you may want someone designated almost specifically to checking for drop bids. This person can also coordinate the additional needed research for the property since they will be the first one to know about it.
Drivers/Spotters-You will always want to have someone go see (“inspect”) the property before bidding on it. Some investors will occasionally purchase properties “site unseen” This is extremely risky and can have devastating results. If you are willing/able to lose the money then that may be a risk you are willing to take but we would never bid on a property that we have not seen first.
The first thing you want your driver to check for is to make sure the property is still standing. I have a good friend who bought a property sight unseen at trustee sale and when they went to see it, it had been burned down! I would not recommended this “strategy” to anyone!
Once they have confirmed that the property is still standing, you will want them to check the property condition. Is it structurally sound? How is the roof, foundation etc. What are the repairs needed? If they are able to see the inside of the property they can give you an idea of what needs to be done on the inside as well. We try to see as much of the house as possible, but it is up to you and your comfort level on the amount of “snooping around” you choose to do. You can usually get an “idea” of what the inside condition is based on the outside condition, but if we can’t see it, we will always account for additional potential repairs.
Next we have them verify occupancy. Is the property vacant or occupied? If occupied, we will always knock on the door and try to find out if they are a tenant or owner and what their plans are. If they open the door this is a good opportunity to take a peak inside and check out the condition. They may even invite you in for a tour if you are real lucky. We can also make an educated guess on how easy or difficult they will be to work with if we were to purchase the property.
Note: It can be much more difficult to deal with a uncooperative tenant (especially if they have a lease) than the actual homeowner if you need to resort to an eviction. All things being equal, we will almost always take a vacant property to an occupied property. As with repairs, if we know it is occupied (or cannot verify occupancy), but can’t speak to the occupant, we will always assume a worse case scenario and adjust our bidding accordingly.
I have had pretty good success in dealing with occupants from trustee sales, but will have to cover that in more detail in another post.
Last of all you want your driver to take a quick look at the neighborhood and point out anything that you may want to be aware of such as gang activity, graffiti, busy streets, power lines, commercial buildings or just overall appearance and feel of the neighborhood.
Someone to Check Property Value You must have someone to pull comps on the property and come up with the property value (see previous post of Evaluating property value) if you are buying the house as a rental you may want to verify local rents as well for comparable properties. Just about every property that I am currently buying will work great as a rental or a flip, which gives me multiple “exit strategies” with any property I purchase.
Title Researcher You will need someone who can do title research for you. This may be your most important and skilled team member. Title research can be a very involved process and require a well-trained person. They must be able to identify anything that can effect your property. This same person can also check for unpaid property taxes, which if you are the high bidder will be your responsibility to pay. Calling a title rep although better than nothing is not sufficient.
Bidders Last of all you will need someone down at the courthouse to bid on the properties for you. Depending on the properties you are bidding on you may need two or more bidders since many auctions times will often overlap. If you are bidding in more than one county on a regular basis, you will defiantly want more than one bidder.
There are many ways to go about working with your team. You may fill one or two of the roles yourself, work with a partner(s), or hire others to help you. It all depends on your comfort level and intentions. Be aware if you plan on doing trustee sales on a regular full time basis, your overhead cost can become very expensive. Some of the more consistent trustee sale buyers have overhead expenses in the tens of thousands of dollars or more each month.
Regardless of who your team consists of, you must have complete trust and confidence in their ability to fulfill their role at an optimal level since each role is crucial to your success or failure in the trustee sale business.
Determining Your Max Bid
Once you know the property value/rents, repairs, occupancy, title issues, etc., you can come up with your Max Bid make sure your bidder is aware of how high you are willing to go.
Note: You may or may not want to have your bidder call you when your property is up for sale, in case you decide to go up a couple hundred $$$ while they are bidding. I have lost more than one property by only $100 more than what I told my bidder I was willing to pay. Looking back I sometimes wish I would have bid just a little higher. However on the other hand you want to make sure you don’t get too excited and let the “heat of the moment” get to you and bid more than you want to pay
As you can see buying properties at “the court house steps” is not for the newbie investor or faint of heart. It is imperative that you really understand what you are doing before jumping into this “shark tank” as it is often referred to. However once you feel confident in your ability to master all of the required elements, and feel very comfortable with your market and farm area(s) you may find buying properties at the court house a pretty exciting way to acquire some investment properties.
Happy Bidding! or Swimming…
Note/Disclaimer: I have described the trustee sale process, as I know it where I bid in CENTRAL CA. I have not done any additional intensive research other than what I have learned through my personal training and experience. It should be noted that although each state has some form of foreclosure process/sale, that the method can and does vary from state to state and in some cases even from auction to auction. So it is imperative to do your own due diligence/research before participating in any of these auctions.
Also as I have made clear in my post, purchasing homes in this manner can be very high risk and should only be pursued by one who understands everything, which is involved, and at stake. I received some very high level training before purchasing properties at trustee sales and learned things I would not have otherwise been aware of. I recommended anyone who is considering buying properties in this manner to do the same.