Just bought my first investment property...from the court house steps.

[Joe C.]

Hi everyone. I've been a lurker mostly. My first thread.

So after a couple weeks of attending trustee sales at the court house steps, I bought a property. Or at least I hope I did.

The process seemed so simple I didn't feel like I actually bought a home. All I got in return for my cashiers checks is a yellow sheet of carbon receipt for my purchase.

As I understand it, the title will be recorded within two weeks and I will be mailed the deed along with the refund of the difference I overpaid with the cashiers checks. Does this sound about right?

A couple hours after the auction, I stopped by the house. It looks good from the outside. I spoke with a few neighbors including the one right next to the subject property. He indicated that there is a family occupying it. He doesn't know if they are renters, the owner, or friends/relatives of the owner.

I just sent a note card today to the property addressing it to "Current Resident; RE: Home Ownership Change" and wrote "Important" across the left edge of the envelope and on the other side..."Urgent." Inside the note card, I advised them the house has been sold at a foreclosure sale and that I am the new owner. I requested for them to give me a call to discuss their options and that I am flexible. Is this the correct step to take? Any suggestions on what else I could have added or maybe left out?

The plan is to send another card or two before the title gets recorded. Once I have the grant deed on hand, I will bring a friend to the property and attempt to make contact with the occupant and determine their intentions. Hopefully by not getting in their face, I don't upset them and that they will not vandalize the property. Or perhaps I have already gotten in their face with the note card?

I wouldn't mind keeping them as a tenant if they qualify and are willing to pay my asking price for rent. But my preference is to get it vacant and have it resold within the next few months before the summer selling season ends.

Any suggestions on my course of action to acquire possession?

[Bill Larsen]

Hey Joe,

Congrats on your purchase! We usually go ahead and serve the 3/90 day notice to quit on the door, along with a letter similar to the one you mentioned, on the day we purchase the property. We also put on there a cash for keys option and that usually sparks a call. We only flip, so we try to work something out with the occupants so they move in a timely manner.

If they don't want to talk/negotiate with us, we just start the eviction after 3 days. There are some risks starting the eviction before you have recorded your trustee's deed, but we have never had an issue with it. I believe you have 10 days to record after you start the eviction, but you definitely need to speak with an eviction attorney about all that.

It's also important to make sure the occupants are not bona fide tenants. If they are, you will need to wait until the 90 day notice expired before you can start an eviction (assuming they continue to pay you rent)

Hope this helps...