Cheap Bidding Services & Do-It-Yourself Rehabs Can Be A Nightmare.
Auction Sales 101
Do you know how to get your hands on the lists of homes that are auctioned off every day due to foreclosure? Do you have the time and initiative to get to the county offices and individually search the hundreds of properties that go to auction every day?
Now…grab that large list and drill down to the 50-60 foreclosure properties that appear to fit in your budget due to their posted opening bids.
OK, now it’s time to drive all over to preview each potential property to make sure it’s not a total train wreck. Don’t forget to peek into the windows and jump the 6 foot block walls-you need to see the backyard. Just bring some fresh meat in case you come face to face with a 150 lb. Doberman/Pit Bull mix. Oh, I almost forgot…if you hear the cock of a shotgun, you may want to move on to the next property-quickly.
Great…you’re back from driving 50 properties and you’ve still got plenty of time to research and financially evaluate each property…don’t worry if you’re off by $10,000, you weren’t counting on that profit anyway. Tax records often show inaccurate information such as; 3 car garage when there’s really a 2 car. So what if the County reports the home as 2100 square feet but the home is really 1810. That’s approximately $15,000 to $20,000 of value that you might pay for but won’t get back.
Once you’ve established retail value and a reasonable wholesale price, now you’ll need to perform a title search. Why? What if you’re bidding on a second mortgage or line of credit? You’ll be the winning bidder on a worthless mortgage that will get wiped out by the 1st mortgage lien.
Wow, you’re exhausted! Perk up, the day is just beginning. Now it’s time to pack a lunch, plenty of water, and sunscreen. You’re about to head down to the county courthouse to bid against other savvy investors for your selected properties.
Fantastic, you’re serenely parked at the courthouse getting light-headed from all the chaos and you find out that half of the homes you intend to bid on have been withdrawn from that days auction-happens all the time.
I hope you haven’t forgotten your $10,000 bidding cashier’s check. Have you checked in with the proper auction (there are simultaneous auctions at the same location), with hundreds of properties being auctioned off, hopefully you didn’t miss your property’s call. Are there other bidders going after the same property that you are? With all the chaos and excitement, have you exceeded your maximum bid? It’s done every day! WHOO HOO! You got the house!
Great, now cough up that ten grand you’ve been clenching. Oh, by the way…you need to come up with the rest of the CASH by tomorrow at 5:00. That’s right…CASH. You could get the money from a “Hard Money” lender at 18%-20%. What’s a little “juice” among friends? If you’ve stumbled across a profit on this one, the hard money loan will surely eat up what might be left.
SWEET, you pay the CASH by the next afternoon and discover back taxes, property occupants that won’t leave, and a 1st mortgage with a balance higher than what you paid for the home. Sound unusual…we see this every day.
I’m exhausted just relaying this scenario to you. Is there a solution? Sure! There are some “budget” and low-cost bidding services that will take one or two of these steps off your plate. Arizona Investment Link expertly handles ALL aspects of this process for you. Over 600 profitable transactions speak for themselves.
Arizona Investment Link provides a Start to Finish Auction Bidding Experience with confidence and integrity.
Arizona Investment Link FULLY comps the “Best of the Best” properties that come up for auction every day. We provide retail pricing, fix and rehab costs, and a “wholesale” maximum bid, if the bidding exceeds this number-it’s over. We don’t exceed maximum bids, in fact, our motto is:
“We’ll Live to Bid Another Day”.
Every property is subjected to our rigorous title, lien, and tax search.
Every property is personally visited to establish county recorder accuracy, occupancy status, and general property and neighborhood condition.
Once Wholesale Real Estate has been acquired, our “10 Day or Less” rehab crew gets busy for a turn-a-round (in most) cases of 10 days!
Within days, your property is ready to enter the rental market providing immediate income or is professionally marketed to bring top dollar “flip” sale.
Most of our clients report that the most time or energy they ever spend on one of our transactions is the time spent turning on the utilities.
Regardless of its final disposition, Arizona Investment Link makes buying Wholesale Real Estate at foreclosure auctions easy! Call today at 602-369-4663 to schedule your consultation.