Online Auction Websites/Alex Cooper - Looking for Feedback

[Kenny Lincoln]

1. Has anyone purchased a property through Alex Cooper Auctioneers?

2. I'm curious about the bidding and purchase process through online auction sites especially Alex Cooper, does anyone have feedback about the process?

3. I noticed that you can finance a purchase made through Alex Cooper but they require the loan application to be made within 7 days of sale, has anyone used financing to purchase a property through Alex Cooper or other online auction websites? What was this process like? 

4. What are some other online auction websites specific to Maryland, DC, VA ... I've heard about a different site but can't recall the name.

Thanks in advance for any feedback.

[Justin Lanciault]

1. My wife and I purchased two properties in April and closed in May.

2. The process is straightforward. Sign up in your name/compnay name. Then you have to register for each auction that you want to participate in. When you register to bid you will have to place a deposit per house, usually around 2500. So if you want to bid on one house (and you win)  the  you can not bid on another house until you deposit more money. I have only ever done it with my credit card, so I can’t speak to the wiring option. If you lose you will be refunded within a few days and if you win you will be refunded a little later - as they want a 10% of the final bid price in escrow wired to them.

3. We had financing set up BEFORE the auction. I wanted to buy a MF but after some research I decided that any winning bid would be too high, and realized that winning 2-3 SFH would be better - which it turned to be better. I'd take a potential 20% ROI vs a potential 5% anyday. I was in constant contact with our lender and we worked through the process. If you secure financianing after winning, all I can say is make sure the lender has some experience with auctions and the type of properties you are looking at.

4. There is also Ashland Auction in Baltimore. They seem to handle vacants and potential flips which is not what I am into, so I don’t have any experience with them.

Lastly, remember that Alex Cooper (and any other auctioneer) are esstentially seller’s agents. They do not represent you. They will help, but only to an extent. Read your contract carefully (both of mine were identical, just names switched out) because there are important deadlines.

Good luck