Miami-Dade County Auctions

[Ralph Hernandez]

Hello all,

I'm researching to get started in the REI market in Miami. Is it possible to visit some of the county public auctions to see how it works? Or is it exclusively for those that put deposit cashier's checks only?

[Mantas Kudrinas]

I actually took a class recently on Miami-Dade Auctions from local RE board of Miami. Buying properties via that website is a lot more complex than it seems. The most discouraging thing of all is that at least 50% of them get canceled and the most of remaining ones are going back to the Plaintiff (Bank). None the less according to instructor the deals can be found (usually 20%-30% below market value), yet you need to identify a good buy & do your due diligence. I tried dig into it, but it is not-as easy as it seems. It takes a long time to find the right property and investigate it; and then it gets canceled (often) or sold back to Plaintiff (Bank). It seems that "big boys" bid and buy a lot of properties and then they deal with it, they get good and bad apples and it works out at the end. Pursuing an individual property might be very time consuming. For those who want to look into  it, here are some websites & tips to help you with due diligence of the property:

• In foreclosure auction you get the property AS-IS with no warranty
• If you are the winning bidder - you get certificate of title
• After you win the auction the property owner has 10 appeal, after that you get certificate of title
• %5 deposit is required to bid - use only that amount, use wire to transfer funds
• %2.2 court fee
• look who is a Plaintiff. If HOA - stay AWAY!
• 1st two digits of the case number is year when foreclosure was filed
• Buy only 1st lean holders, look for banks or financial institutions
• Any outstanding leans after LIS PENDANTS - disregard
• IF many defendants are listed - stay away
• Look for expired permits
• Look for code violations
• Look if the taxes are paid

There are more items that are related on doing the proper due diligence, but those are some major ones. 

See link below for the list of helpful websites to help you with the process:

Websites

Good Luck!

Mantas Kudrinas (Realtor, New Investor)