What do I need to know to bid at a foreclosure auction in CA?

[Jennifer Silletto]

The subject question is broad so let me clarify what I mean.  I was at 

investment meet up group and the organizer asked if anyone was interested in pooling money together to buy HOA liens at auctions. I am a real estate broker and have been in the business since 2003. I have access to MLS, title searches, etc. I've done short sale flips as is. I understand that liens must be paid off and a title search must be done etc. With that being said, this gentleman charges a $4900 fee to make the bid on your behalf and also supervises any of the rehab work (if it is part of the strategy) I've never gone to an auction before so this is still new to me.

I pool some money together from several investors, the HOA delinquency is $4973. This property has been postponed 3 times already. However, he told me lately since things keep getting postponed and there really isn't many auctions going on, investors that go to these auctions are now bidding and bringing the price up. When I went to the auction to bid that day, he instructed me to stand in the parking lot so the other investors wouldn't see me, and potentially try to play games because there happens to be a "secret club" of sorts. Old timers vs newbies sort of thing. I don't know if this is real or BS. Perhaps he just doesn't want me to see whats going on. But in this deal, he waived his $4900 fee and wanted half of the profits when we sold the property in 90 days. This particular property is a SFR and has 1 mortgage lien on it for $330k. No other liens. We plan to find a buyer as soon as we win the bid and sell it AS-IS. Profit could potentially be $250k-$300k. He wants 50% of that. Now the only reason I would pay that is because I need some hand holding for my first deal. I am in the business and can pick up fast. But is this too much that he is asking for?

Also, I am worried about not being able to talk to the 1st lien holder since the winning bidder is not on the loan.  He says these lenders just want to get their money and not the home and he hasn't had any bank not willing to talk to you.  

He uses some sort of database to be able to pull info on properties that are going to auction.  Can someone help me by telling me what companies can pull this info?  He said this is his deal that he brought to me and he needs someone to help him finance it, thus the 50/50 split.  

Any suggestions or tips on bidding at auctions would be greatly appreciated.