BiggerPockets

Are you buying at trustee sales? I'd like to hear your story. I'm sure a number of other BP folk would too.

I'm hearing that this where the deals are, but I'm unfamiliar with them. How are you funding your trustee sale purchases? what kind of pricing are you getting? What is your success rate at the sales?

Horror stories accepted too. :D

Thanks!

Mitch, thanks for the shout out, but John and I have already spoken. His model is a bit narrower than ours but we're trying to find some synergy.

Will:

Given the tight spreads, are trustee sales still an active part of your pipeline. Are you still in the room?

Thanks!

Steve:

Good point. I should definitely attend a sale here in Alameda County.

Jay and others: Do you know of anyone in Northern California attending sales?

Thanks!

Jake:

That would be great. Could you PM me with the contact info?

Thanks!

Will:

Are you buying your REOs via MLS or directly?

Thanks!

John,
The only way is build a relationship with the bank and buy the REO's direct at a much better price. If you are flipping the REO's and you have a good relationship the bank will float you the REO's for 90 days so you can flip them.

John,

The way we started our relationship at the bank we went in and set down with the president of the bank and explain what we like to do and ask for a chance to prove ourselves.John we did get turn down at first but we went bank to bank until we got a yes.

^^^^ Totally Agreed...

I was wholesaling trustee properties in LA but now... it's tooooo dam fierce.

Bernard, would love to hear why... my thoughts is international money... especially asian mula.

@Jake, I would assume he means taking them down cash then selling to another buyer who is either all cash or financing. In either case, if the deal was a great spread back in the day, it would have been easier to sell via wholesale in the same condition to another rehab investor back then. Today, the spreads are not there so that is almost impossible. (I did say almost)

@Jeff - Foreign mula could be one of the reasons. A second is the speculation investors. They feel that CA prices will likely increase and when they do, at a rapid pace, therefore, they are willing to pay these lower spread, higher prices, rent and hold for as long as it takes, taking negative cash flow along the way until that payday comes. Certainly a strategy, but not one I would apply personally.

Lastly, with the high exposure that trustee sales have received in the past 3 years and all the flip shows on TV, there are so many rookie investors out there who pay more than they should and this is just another reason why the spreads are thinner, not only at trustee sales, but at MLS listed REO's as well.