All Forum Posts by: Don Chambers

Has any investor had success at auction.com?

I usually stay away form auctions because there are several buyers which drive up prices.  A few years ago I tried a few live actions and never bid.  The bids run up over my maximum so I never bothered to bid.  

Recently, I read some blog posts about auction.com and decided to give it a try.  I have bid on 6 properties, I didn't get any and it seems they didn't sell.  They return week after week.  I assume the winning bid did not meet the reserve but I can't find any history.  It is possible the deal fell through for other reasons.

Most of the properties say they are occupied so you can't go in them.  I have to factor this in so my bid is low - but everyone else has to do that also.  The bid increments are usually so high that I can only bid once.  If I am out bid the next bid is way to high.

For example, I look at a house that will rent for $900/month.  I can't spend more than $45k on this after repairs.  I can't go in it and it looks a little run down when I drive by.  I offer $25k, there is eventually a counter at $35k but I can't bid again with the $10k increments so I don't get the house.  A few days later it is back for auction.  This time, I am the one that put in the $35k bid but I get an email that I am outbid.  I am a little worried $35k is too high since I can't go in.  This house is back on the auction today.  Should I even bother?

I understand what highest and best is.  My concern is that I don't believe there are multiple offers.  I don't think it's the seller doing it.  It's the agent.

It happens every time with one agent (unless it's a hud house).  I see it with other agents but not every time.  Not even half the time.

I just did a quick calculation.  I could be off.

I totaled the rents on each property for 2016 assuming 100% occupancy.  This is the maximum rent I could collect.  Ignoring principle and interest my net income was 48% of this number.

This means taxes, insurance, maintenance and vacancies cost almost half the rent.  I don't think I could cash flow with loans and paying much more than 50 times rent.

I could be off a little.  I got some properties mid-year.

How does this compare to others?

I think that's high.  The maximum I pay is 50 times rent for purchase, repairs, and closing.  You will be almost 85 times rent.  I may go a tiny bet higher if there is some compelling reason.

I just bought an  $800 rental for  $37k and repairs went over budget and I'm in it at $43 - I think that's high.

Don't overpay. 

How much do you plan to offer on this house?

I withdraw the offer on principle. I think it's a scam so if I'm the only offer he's going to lose me. If his investor is offering just a little over me it does no good to keep it in place.

I want to negotiate in good faith. 

I frequently offer on bank owned properties in the MLS through my agent. There is one listing agent that always says the seller responds with highest and best. I used to give highest but now I just withdraw the offer. Then I'll notice the house does not sale and sometimes has a price drop lower than my offer. This happens over and over, but not nearly as often with other agents.

I think it's either a lie, or he tells his investor to offer and it's a legitimate highest and best.  Then his investor just offers a little over my highest.

If I'm right, is this illegal or unethical?

I'm tempted to just offer through the listing agent who does this.  I hate to do that because it rewards his deceit and hurts my agent.


I have no proof.  Is there anything I can do?
I wish I could find out who the other offerers are.  It would be meaningful if it's the same person each time.  It's probably easy to show a pattern if I saw the data - or to see that I'm wrong.

I know there are many companies with different rules.  I am not in town and my partner is new.  I called one other and was told them same thing.

My local agent said different states have different rules and she didn't know what was mandated.

Jacksonville is turning out weird. I'm told a permit is required to replace a water heater. That's never the case here. You never know the weird laws in other cities.

Tomorrow I will call a bunch.

Just thought someone here may have experience in the area and could make a recommendation.

I have 24 rentals in the middle Georgia area and I just bought one in Jacksonville, fl.  It's my first outside of Georgia and I have a local partner (in jax) but it's their first.

I need homeowners insurance. My partner was getting it and we are told we have to pay for an inspection.  I never pay for an inspection here and it's usually a drive by when they do it.

The inspector says we need a new roof.  It's is old but it's not that bad.  I have had a lot worse and never been forced to replace it to get insurance.  I even get insurance on dilapidated properties that I'm renovating.

I get an actual-cash-value policy and they are only offering replacement cost.  I understand the inspection would affect the value of the policy but I don't see why it stops me from getting the policy.

Is this normal?

Is anyone familiar with the rules in Jacksonville?

Can anyone recommend an agency?

My bookkeeper recommends QB desktop but I don't know how to make that work.

I  have someone (a bookkeeper) that picks up rents from my mailbox, pays bills, etc.   

I still work with tenants  - I need to see bank balances, statements, etc during the day.  I work full time and travel a lot.  It's great to have access on the web.

And I just hired someone to help manage repairs, show houses, and manage collections.  She needs access.

I initially used a free open source desktop product called GNUCash.  It worked fine when I was just managing a few properties.  I could just do everything at night on my computer.  As I grew, I needed access to the data at work or when traveling, and now other need access.

I am small - 22 houses.  I don't have an office where this people sit.

How do we access the data using desktop?