All Forum Posts by: Billy Runyan

I've a bit of experience in purchasing auction property.  As stated above, there are many different types of auctions to consider.  Here's a couple of my blog posts over on Quora:

The real deal is that BEFORE a property is foreclosed it must go to a public auction to

determine the Fair Market Value (FMV) and that's a Federal law passed by our

congress just after the Great Depression. With a little research you can find where

public notices of things like bankruptcies and other legal facts are published and

viola, you’LL find them listed there with the dates, opening bids and the trustee

name who will share some basic info with you prior to the sale. Now you may not

get to look inside but hopefully you'll be saving enough to make up for it. Next you'll

need to investigate the title for liens because some of the more pesky ones from the

governments usually stick around with the HOA's along for the ride. Caveat

Emptor, this is not something you should attempt without a bunch of learning and

experience first. I actually saw what I thought was an experienced buyer at one of

these sales spend over $220 grand on a worthless second mortgage, no refunds or

take backs later, cash is king and all is as is where is… Be very careful!

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The first step would be to understand at what point you want to be involved. The

pure definition of a foreclosed house would be at the point the lender on the home

needs to foreclose on the current owners to get his loan settled within the terms of

the original aggreement. The lender (or Judicial body if required) usually assigns

the task to a third party entity known as a trustee who will put the property up for a

public auction according to strict laws and regulations from the local, city, state and

federal government(s). If this is the point you want to make a purchase then you'd

best research local legal newspapers to find the postings of property going to a

trustee auction sale which usually occurs about 21 days before they put it up for

public bids. If you mean foreclosed, in the past tense or already foreclosed property,

these are the ones that nobody bought at the trustee auction so the ownership was

given to back to the lender as settlement for the debt. Usually, they (the lender) will

call an experienced Realtor who helps them get the old owners out of the house, do

the often needed rehab work, clean up the title and finally list it on the MLS as a

“foreclosed property”. Usually they are sold for the highest amount they can get to

offset the losses occurred but can often be a good buy as Banks don't like REO's

(Real Estate Owned) sitting on the financials so they tend to price them

aggressively. In any case I highly recommend you seek professional and highly

experienced help before you jump into this arena with the “bulls” waiting to come at

you. BEST LUCK

Almost every "offer to purchase" or Real Estate Purchase Agreement (RPA) has a due diligence provision that starts for a period of days "once the contract is accepted" by both parties in writing. To that end, the buyer normally has the opportunity to do a professional inspection of the property by licensed contractors. There is a "Federal"" document commonality referred to as "For your Protection" get a home inspection. Read your contract. Many times some of the grinders (companies on the take) try to make the earnest money deposit non-refundable PRIOR to the inspections. If you see that... my advise is RUN, don't walk AWAY from it as fast as you can. I sold hundreds of bank owned REO's and every one of them had the right of inspection. BEST LUCK!

To get a good property you need to stay away from negative issues entirely in my opinion.  Negatives have a way of coming back to haunt you forever and mold is one of the most memorable.  Real Estate buying and selling is not a bad business, but if you take more risk, know that you'll not only live with it, you'll have to sell it one day as well.  Real Estate is more or less a commodity and the only way to really affect the price is with attributes... nice location, better upkeep, better everything.  Mold does not fit that model very well.  That said, if you can buy it cheap enough then maybe...  but you'll need some serious profit points on your side going in and the discussion sounds like your first offer was about right.

YW!

Markets are stable and rising slightly right now.  Here's a recent report I like to use but the reallity is in watching it everyday.  Many are raising prices in hopes of making a it on the mad "out of the stock market" into the hard asset Real Estate market as of the election, either way its crystal ball stuff for now, at least till after the election.

Market Report click

Out of the country then, good luck with your meet!

Please let me know if you find anything... similar problem

Please send your contact info and resume to my email, I'm easy to find by name. You will want to work on getting your license as it seriously limits the work you can do for anyone outside of yourself.  Like I said, I'm working on a new project and I'll hopefully need help but as mentioned the license is needed for almost everything.

Traditionaly, anything in RE has been a licensed function so the first question would be do you have one.  Next, the question becomes what is it you can do for someone and get paid, my thoughts would be as a team member for a group doing things like opening doors for showings or doing open houses to collect leads. 

I'm in the process of working on a new model that may need this kind of support so, if you'd to send me your contact info I'd contact you as the project moves forward.  BEST LUCK!

yes, it is only available to knowledgeable professionals.