All Forum Posts by: Michael Gertz

Hey Friends!

Its a big topic that I am sure everyone is interested in.  I plan to go to the Essex county foreclosures this upcoming December to bid on a property but I need to be prepared.  The question that I ask and I am sure other as well is the following:

1) What due diligence should be performed prier to the auction?  Look up owner information, any details around the foreclosure, look at the property, etc. - what beyond that can a everyday investor perform?

2) How do I prepare for the auction?  Do I get multiple certified checks and for how much.  lets say I am expecting to bid on the property up to 250k  Do I need 250K for the auction or do I bring 10 % in certified checks.  I noticed some people go and have multiple nominal, but what is the proper formula?

3) What should I expect at the auction.  this is my first time as I always have to work, but now get the time to actually go.  Will it be a quick decision, will it be postponed, etc. 

4) if I should get the property, what happens next?

Any information would be greatly appreciated. I feel that the deal is what we are all looking for especially considering that the markets are hot and anything on the MLS is flying off the market. Need to be creative in some way or try different avenues which is why the auction sounds exciting.

Thanks!

Mike

Thanks For the posts!  I am going to start with the yellow letter to his PO box that I found from the town, and by dropping one in his mailbox.  I will see if people finder can get me more color on his phone / email - Maybe even face book to see if he is there.

I expect that the house will flip around 425000

ARV 425000 * .70 = 297500

Estimated rehab 25,000 = 322,500

Looking to make 75000 on the house so 350000 becomes my base - additional costs (closing / potential broker) bring that down as well....

Is it fair to say 305000 as starting bid..will go up to 325,000..?  Thanks again!

Question - Go in with a direct offer or try to get him to where I want on his own.  I guess this is based on the person involved...

Hey BP'ers!

I have a house that looks to be an estate that no one is living in.  I checked the mail - yeah it was on the porch and noticed that the owner hasn't paid their water bill.  Found on NJ Parcels that no loan is registered - I assume that isn't always accurate but ok.  Called the tax office and received the latest address of the owner.  I am about to send the owner a letter offering cash for the house and try to follow the Mike q of podcast 077 negotiation but he never offers a price. I tried that in a mock scenario with my wife and she kept asking me what I am offering in which I kept repeating to her, what am I offering....wasn't working out in that scenario!..

I believe the ARV is 425k and house needs about 25k rehab just to clean up, update landscape, and some paint as the house is in great condition. I have done total rehab's so I believe the estimate is pretty accurate.

Need help here on a couple of things:

1) If he asks what I want to pay - do I go with 70% rule?  Whats best practice?

2) What documents do I need to get a legal agreement should the owner agree?

3) How can I find his number just in case the owner disregards my big bold WILL BUY HOUSE FOR CASH

Any advise on working this deal or how to get a sellers attention at the best price is greatly appreciated.  Thanks