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I too am Mn born and raised,,,,, on the run from winter...... so I am looking at fore closed properties in Arizona. I bought and sold some in Minnesota but the rules are different.
If the house is in Pre fore closer before the auction sale (trustee's sale) How are your people getting access to the property when it is still in the name of the mortgage holder. If so, how soon are you getting in before the actual auction date. Does the Trustee of the property have the authority to get you in? If not, how can you get a pre auction inspection.
Also, I have always abstracted my own titles in Minnesota, but here I am able to only work with the recorder info that I can get to on the internet. It only goes with grantor/grantee and is not always consistant.
I would be interested in talking to your people and see about working with them. I'm never afraid of hard work, but I am more that willling to pay for the work that I can't do.
In my opinion, the houses that sell mysteriously cheap is suspicious. I wonder if someone has an inside track to homes that are way under priced, whether they need restoration or even if they are in perfect condition.
We just rented a house in Casa Grande, that the zillow listing was $39,900. I have no idea what our landlord bought it for, but I think they stole it so far. There are a few things wrong, but nothing major so far. The only thing iffy would be the neighborhood because it is kind of anything goes, but overall so far ( I keep saying so far )...the hood itself is okay, and on this end of the block ( a 2-block subdivision from 1986) it is better kept than the incoming end. It is a good-sized 2 BR 1 bath with a single garage (no other garages I have noticed) and RV gate in the back which we needed. We also have a fireplace, AC, and a block fence which makes my dogs happy (me really). Inside it has been kept up with wood floors, tile, all appliances included and they work so far
My feeling is when the market is hot and the time is right to jump back in, Real Estate agents like "Captain Bill" will be way too busy closing deals as opposed to having all the free time in the world to post here incessantly. Very "Maytag Repairmanish" Nope, we have a long way to go.
First, you need to get straight, that 99% of the homes are going back to one of the lenders. Second, a similar percentage owe more than the home is worth...........third, the big price reductions occur weeks later.......fourth, it's almost an oligopoly of sellers out there. A handful of lenders account for a high percentage of listings. They are required to do their diligence when selling also, and will be signing off on the deal.
I think your method will put you on a short sale chase that is going to be real timeconsuming. Otherwise, foreclosureradar will give you a lot of info., but most of it is public info online.
Aldopho. Like Bill, you are making all kinds of assumptions.
I'm looking for a home in either Surprise or Goodyear. I strongly prefer it to be on a 10,000 sq foot lot with a 3 car garage. I like open floor plans that seem to be in 2005 or newer builds with nice street appeal. A home with a pool is a plus. I'd leave it drained until I get down there several months a year.
If the carpet is trashed and the lights and cabinets are gone, I don't care. Now I can put in what I want and it will be enough of a hassle for most so it will go for cheaper.
Now. MLS is NOT exactly chalk full of those foreclosures with my constraints. So I am looking at other ways of purchasing. I'm looking for a deal but if I don't "save" over the MLS cost per square foot I'm fine with that. I am still going to look what is on MLS. But right now, I would like to examine other sales channels. The odds of me asking my good friend in Sun City to physically go look at a home might be a couple times a month; not exactly "chasing". He is the one who met with them 2 times (soon to be three) and is convinced that they add a lot of value. He owns 6 homes (mostly rentals) and knows a thing or two about construction as he was a contractor.
I'm not pimping their service. In fact, more people only means more competition.
I'm also going to predict this sales channel will sell for less $$. Now. I have not done due dillgence on the company I am speaking about. But they will be running around town day in and day out, examining the title work, taking pictures, giving estimated market values etc. I was told that they can "get me in" (or in my case, get my friend in). I need to understand "how". I should know that by early next week when all of my questions will be answered. I suspect Bill also has figured that out (how to get in) based off of his post.
Additionally if this works out better tahn I thought, I'm thinking about buying a house for my Kid's ($120K a piece) if it is the right price. So I am looking at this is being an interesting approach and having some fun.
Could it be a complete waste of time for me?? I suppose so. But I am certainly not going to take the advice of an Agent who assumes that this is over my head. His advice (at least how I look at it) is a conflict of interest. While he will never be my agent, agents obviously post on these forums and some times their motivation is to pick-up sales leads. Nothiing wrong with that but I'm not going to stop examining this approach based off of his posts that I could have wrote (I didn't learn a thing). He has no idea of who I am or who I know. But he does assume a lot. Suppsoedly their service bypasses a lot of those hassles that you and Bill are speaking about.
As I have asked you before... Why are all of those "sharks" (as Bill called them) out there day-in-and-day-out?? They are wasting their time when they are missing out of on the REAL deals. There has to be an upside to hassle and additional risk (not being able to write an inspection clause in a contract).
Captain Bill: I appreciate your comments on this blog. They have been helpful when we bought our first home in the fall. I was wondering if you have an opinion about the multi-family house market in the Phoenix area. Are prices still going down there or has the trend also reversed? I'm talking about the standard 4-plex going for about 100k - 150k.
Thanks, PL
I have couple of houses that I kept to rent, but since my primary business is rehabbing to sell, I haven't looked at the 4-plex market.
If I were going to be a long term landlord I would certainly go the 4-plex route, like I did in the 70's because it's easier to get cash flow.
Today, if I were doing 4-plexes I would just determine the return that I needed and then look for the property that is priced to give me that return and buy it. In today's rental market I would need that return to be based on a 12-15% vacancy factor and rents that are below the going market rent.
That way I would be covered if I had to lower the rents. I would also need some added-value that would help me keep longer term tenants.
Since prices are already low on real estate across the board, and interest rates are low, and since it would be a long term investment for me, I personally wouldn't care if the prices dipped a little lower as long as I could confidently project a good cash flow, because in the long term I would be looking at income from the rents more than price appreciation.
Aldopho. Like Bill, you are making all kinds of assumptions.
As I have asked you before... Why are all of those "sharks" (as Bill called them) out there day-in-and-day-out?? They are wasting their time when they are missing out of on the REAL deals. There has to be an upside to hassle and additional risk (not being able to write an inspection clause in a contract).
MN, I think you're missing my point. I am not giving you advice. I am not trying to spook you. This may very well be a cake walk for you. Again that is not my point.
What I am saying is directed to the readers of this thread who may assume that this is a great place to buy a house and get a fantastic deal. If it were such a great place to get a great deal, I would still be buying there.
My big point is that when one buys a house without inspecting it inside and out, there is a tremendous risk that can cost the buyer many thousands of dollars.
About the sharks. These are professional wholesalers. They are not mom and pop operations. They are large companies. They buy a lot of houses. They have people in the field who do the leg work and email their report instantly. They get into the houses they buy. They do not just do a drive by for their boss.
I can go into a house and in 10 minutes have a good estimate of what it's going to take to fix that house up, and what I can sell it for. These people do the same, and they can do it faster than me.
They do a quick computation, and send that along with pics instantly to their boss who then gives their guy at the auction the houses and prices on which to bid.
They do not want the public there because they bid up the prices. As that happens then the banks tend to place higher opening bids on houses and that reduces the spread that is necessary for a wholesaler.
So they try to discourage the public by bidding up prices on homes that they don't want. They would love to bid up the price on a home that they know is in an expansive soil area and has a cracked slab that will cost $50-$100 to remediate. Then the buyer would pass the word on about how they lost their shirt on a court house auction property.
Again MN, this information is not for you. This is a cakewalk for you, and I know you'll do well.
This is for people who may feel the need to know the potential pitfalls when dealing with court house trustee auctions.
The people who are providing the bidding services for the public cannot go into the house for a client. They are trespassing when they go into the house. So they could not advertise or provide a service that is having them illegally trespass on a property.
Also, if they made a report on the repairs needed, and their estimate was lower than the buyers actual cost later on, the buyer may sue them for the errors, and also for illegally trespassing. So all one is going to get is a drive-by, which is legal.
My feeling is when the market is hot and the time is right to jump back in, Real Estate agents like "Captain Bill" will be way too busy closing deals as opposed to having all the free time in the world to post here incessantly. Very "Maytag Repairmanish" Nope, we have a long way to go.
Winkelman, allow me to clarify something for you. I happen to be extremely busy, and so are many of my colleagues.
My primary business is rehabbing homes. I can do about 12 a year now.
My secondary business is working with buyers, most of them being referrals from friends and past clients. I don't advertise any more, and I limit the number of buyers that I work with to a maximum of 4 at any one time, simply because I do not have the time to work with more.
Blogging and posting on forums is a form of social marketing that almost every industry in the country is now using. It is not just realtors. And it is far from being "Maytag Repairmanish". it is a relationship building type of marketing.
It is meant to build relationships that allows people to get to know you and get to know what your expertise is, and if they like you, then they will call you when they need your services.
It is a form of "filling the pipeline", which is an important marketing term, and something that many people neglect in their business.
I do get business from City-Data, and I also turn down business from some who contact me, because either I don't work in the area they're interested in, or because I don't have expertise in what they're looking for.
People who do social networking on blogs and forums (such as here at City-Data) will set aside around one hour per day, several days a week, to post information. It is, or should be, considered part of the daily work routine.
Those who do not continue to do social networking when they are very busy will see their pipeline empty at the funnel end when the market turns slow. Those who continue networking when they are busy will continue to be busy all the time.
My feeling is when the market is hot and the time is right to jump back in, Real Estate agents like "Captain Bill" will be way too busy closing deals as opposed to having all the free time in the world to post here incessantly. Very "Maytag Repairmanish" Nope, we have a long way to go.
We'd slap your azz with a personal attack infraction...except that you are correct
Bill is right, the courthouse steps are an entirely different animal, and it would be far easier to get burned than buying an REO. Some of those guys are operating at less than 1% profit.
MN, you are looking for a very specific type house. You find one not listed. It is newer than 2005. A slim chance they could afford to sell, and if they did they wouldn't undercut the banks, why would they?
Bill, I've only bought 7 houses myself; 1 probate, 1 HUD, 2 REO, and 2 private parties, how many have you bought at the courthouse in the last five years?
I did buy a tax lien and foreclosed on some land, but that is another matter.
Bill is right, the courthouse steps are an entirely different animal, and it would be far easier to get burned than buying an REO. Some of those guys are operating at less than 1% profit.
MN, you are looking for a very specific type house. You find one not listed. It is newer than 2005. A slim chance they could afford to sell, and if they did they wouldn't undercut the banks, why would they?
Bill, I've only bought 7 houses myself; 1 probate, 1 HUD, 2 REO, and 2 private parties, how many have you bought at the courthouse in the last five years?
I did buy a tax lien and foreclosed on some land, but that is another matter.
I bought two at auction and stopped because of the amount of work involved. It took me 8 hours per day, and my partner about 3 hours. It would take about 2 weeks before we had one successful bid. That was not productive use of our time.
On the night before I studied the list for the next day and ran the comps on the ones of interest. That took about 4 hours.
The next morning I spent about 4 hours visiting the homes and working up the cost estimate and bid price for those we wanted to bid on. My partner would back me up on the repair cost and deal with the title company. Usually it would filter down to 2 or 3 houses to bid on. The title company that we partnered with would run a cursury title search, primarily to make sure it was the first mortgage that was foreclosing.
Then we would call our maximum bid into the guy we hired to do the bidding for us at the auction.
It took me awhile to learn how to get into the houses. If I couldn't get in, then we would not bid on that house. We had to be careful so the neighbors wouldn't call the police on us for trespassing, thinking I was a burglar.
I was surprised one time by a squatter in the house. The guy did not attack me, but it sure scared me.
After that I started carrying something for self defense, and made sure to call my wife each time I entered a house, and when I left, so she would know to call the police if she didn't hear from me by a certain time.
The guys who are charging $3000 now, were charging $1500 at that time. We didn't use them because they don't do an interior inspection for you, and that was very important to us. So without that interior, their service was not valuable to us.
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)...the hood itself is okay, and on this end of the block ( a 2-block subdivision from 1986) it is better kept than the incoming end. It is a good-sized 2 BR 1 bath with a single garage (no other garages I have noticed) and RV gate in the back which we needed. We also have a fireplace, AC, and a block fence which makes my dogs happy (me really). Inside it has been kept up with wood floors, tile, all appliances included and they work so far 
They are wasting their time when they are missing out of on the REAL deals.
There has to be an upside to hassle and additional risk (not being able to write an inspection clause in a contract).
