I'm operate in smaller markets and it's true that there are many professional bidders at the larger auctions, I am frequently able to pick up properties uncontested from the smaller trustees who hold their auctions at different times.But I wholeheartedly agree, buying at foreclosure auction is not a sport for newbies.  

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

If we are performing a major renovation, the Owner is required to sign the vendor's contract, and provide full payment to us prior to the start of work.

Just keep in mind, that should be money invested in a passive investment, for example a performing note or a JV/Fund investment.

Meaning a 12% return may be under-performing for your market. 

Perform the calculations as to what the monthly payments is, and see if the spread is large enough to turn a profit.

Since it's currently my wife and I.One note, if my subs are hired by an owner and not me, I cannot bind them to my contract or make sure they perform, which I think is part of the USP of a general contractor.Side note: I also plan on having signs posted on all project sites that state that no materialmen's lein can be taken on the project, as well as contractual language to support this.

Arkansas Code § 17-42-104(a)(1), concerning exemptions, is 20 amended to read as follows: 21(a) This chapter does not apply to: 22(1) A person not licensed under this chapter who performs any of 23 the acts described in § 17-42-103(10) with regard to the property owned, 24 leased, or purchased by him or her; as: 25(A) An owner of an individual freehold or leasehold 26 interest in real estate; 27(B) In the case of a corporation, limited liability 28 company, limited partnership or other entity recognized by law holding a 29 freehold or leasehold interest in the real estate under subdivision (a)(1)(A) 30 of this section, a member, manager, partner or officer, who has authority to 31 and does make management decisions affecting the overall policy of the entity 32 regarding real estate activities involving only the interest of the owner; 33(C) An individual attempting to acquire for his or her 34 personal use a freehold or leasehold interest in real estate; or 35(D) In the case of a corporation, limited liability 36HB11632 01-12-2017 09:53:17 SRC062company, limited partnership or other entity recognized by law, intending to 1 acquire a freehold or leasehold interest in real estate under subdivision 2 (a)(1)(C) of this section, a member, manager, partner or officer, who has 3 authority to and does make management decisions affecting the overall policy 4 of the entity; 56SECTION 2.

If he put into the agreement that he will only get paid 2.5% (I have heard this happening before) on the close, meaning you the buyer would come out of pocket for their services at close, then you are in that contract to perform.