REDC Real Estate Auctions

[Jimmy C.]

So I have Googled them and saw many complaints of poor customer service, and scared people waiting for EMD money to come back.

Have any of you had experiences with these auctions?

I read previously about Williams and Williams or something being a sham, but I hadnt seen anything on this REDC yet.

They are having a live auction in a few days, and I want some of the properties I see that will be there.

[Scott Hubbard]

Originally posted by Jimmy C.:

Sorin,

I was just saying that I have seen a LOT of threads here bashing Williamsx2. Mainly when people leave thinking they were the winning bidder, only to find out later that they did not meet the reserve.

REDC/Williams/Hudson are facillitator's and usually use local brokers, attorney's, and title companies to close the deal. As Don said, this is an elective sale and the owner of these properties have a predetermined value in mind. So, in my experience there is a higher rate of failure with these types of auctions.

When it comes to reimbursement EMD's and buyer's premiums, you might be fighting three or even four separate entities to get your full refund. The facillitator, the property owner, the title company, and/or attorney are necessary cogs in the wheel which creates a mess when someone drops the ball or drags their feet.

In my opinion, REDC/Williams/Hudson sometimes gets unfairly held responsible even though they may not always be the culprit. When your involving multiple parties, communications can breakdown and this is generally what causes the delays.

Most complaintants fail to read the terms of service agreements and disclosures or fail to understand all process entirely.

In my opinion, most properties sold through these sources are to retail or slightly lower than retail buyers. I was at an REDC last month and I spent several previewing properties and the best deals that actually closed did so around 90% to 95% of FMV.

The real scam here is that these properties are marketed for 10% above FMV as an REO and then when unsold, are remarketed and sold for 90 to 95% of FMV. The average buyer then proceeds to pay 10% higher price becuase they based it on the inflated original list price.

Out of 60 properties, not a single one actually closed where it would have closed at an effective price for me. However, one of my partners did get a very good deal on a turnkey property in a gated and secured subdivision where you flipped it in 42 days with less than $1K in rehab.

So, once in awhile a deal can be had, but it certainly is not a source I would highly recommend.