Coalinga, CA · Member since 2012 · 13 posts · 4 votes
Has anyone had any experience with them for buying houses to flip or rehab and use as rentals? Also has anyone that is just starting out & doesn't have a large sum of own cash had experience w/ privatemoneygoldmine*com for a direct private lender?
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
13y
Save your money, Sharon R.
Privatemoneygoldmine is nothing more than a list aggregator. They troll the web for anyone they can find associated with private lending and then they sell the list. The neither vet, endorse, research, guarantee, nor offer any legitimacy to the names they sell. It’s a list. You could do as well yourself randomly searching with Google.
Type a few local zip codes into their site and then a few from across the country. Many of the same names appear. Not to get into definitions, but to quote from their site, these are apparently the “nationwide” private money lenders who are “MUCH cheaper than hard money.” Puhleeeze.
Portland, ME · Member since 2012 · 616 posts · 550 votes
13y
Yes, I've purchased through auction.com It's just like any other auction purchase, there is a large deposit and no contingencies. Lots of paperwork too.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
I bought from Auction.com two years ago. Everything was fine. I rehabbed the house, sold it, and made some $.
The last time that I was on their site, they were selling occupied homes as-is and only giving a quit claim deed and no title insurance. I wouldn't buy from them if that is still the case.
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
13y
@Rob K is correct, they are selling occupied homes with a quit claim deed and no title insurance. In that case, buying from them carries the same risk as buying at a Trustee's sale (courthouse steps). That is NOT a venue for beginners unless you have so much money that you dont care if you lose it.
A couple of weeks ago, I saw them selling a house that was obtained via foreclosure of a wiped out second deed of trust. In that case, they are selling NOTHING! The property had already sold to a market buyer several months ago after the first foreclosed. Of course, I only discovered this by doing my own title search. I'd bet that they weren't even aware of this, they just sell what their clients ask them to sell.
That being said, not all of their auctions are sold in this manner, some are sold with title insurance. You have to read the terms and conditions of each auction.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
13y
Save your money, Sharon R.
Privatemoneygoldmine is nothing more than a list aggregator. They troll the web for anyone they can find associated with private lending and then they sell the list. The neither vet, endorse, research, guarantee, nor offer any legitimacy to the names they sell. It’s a list. You could do as well yourself randomly searching with Google.
Type a few local zip codes into their site and then a few from across the country. Many of the same names appear. Not to get into definitions, but to quote from their site, these are apparently the “nationwide” private money lenders who are “MUCH cheaper than hard money.” Puhleeeze.
Coalinga, CA · Member since 2012 · 13 posts · 4 votes
13y
Thanks Rob K & Brian Burke for the responses. Yeah, I saw that "no title insurance" only "quit claim deed" on there, made me more than a little nervous. So I contacted my ex-associates in RE and Stewart Title and got a Condition of Title Guarantee. This is like a Prelim., they had to come up with something more than a Litigation Guarantee & Lot Book Guarantee, because so many investors have been doing this the past few years. So I don't know whether to trust this - they seem to want everything to happen so fast. Contact them 30 min. after you win bid, and wire EMD 2 hours after that, even tho' the auction closes on a Saturday at 2:00-4:00 p m. Does that make any sense to you guys, or would you still be nervous and hesitant???
Coalinga, CA · Member since 2012 · 13 posts · 4 votes
13y
@JeffS - Thanks for the great info on "the gold mine", and the link. I clicked and read it - glad to not waste my time and money. You guys are all great on here, with all your experience - there seems to be an endless supply of "scammers"! I guess I was typing to Rob & Brian - so I didn't see yours until I posted.
Real Estate Investor · Philadelphia, PA · Member since 2010 · 283 posts · 81 votes
13y
Sharon R.: I have bought two houses from auction.com.
First they will call you on a Saturday. I placed a bid on a property that ended on a Saturday morning and they called me on Saturday afternoon. They basically check make sure your information is right and ask where they can send a contract via email.
The second thing I learned is regarding the reserve. I bid on a house for $15,000 and the reserve price had not been met. I thought it was like eBay and the auction ended without a bidder. Well acutally, Auction.com will still submit your bid to the bank even if the reserve has not been met. Just something to watch out for.
Also, it does take a while for all the paperwork to go through. So be prepared not to hear from anyone for a couple weeks.
Arlington, TX · Member since 2013 · 1 post · 0 votes
13y
Thank you for the information on privategoldmine.com being a new investor I was VERY SKEPTICAL about the legitimacy of this type of funding. I thought if it was specific to my area the local Real Estate Investment club would surely know who this entity would or should be.
Involved In Real Estate · Las Vegas, NV · Member since 2010 · 341 posts · 86 votes
13y
As long as you know what you are getting yourself into, its not as scary as everyone thinks.
Yes they do sell with a QCD (Quit Claim Deed) and Occupied, but half the time, if you drive the property, the home is vacant (but not trashed out).
Don't take anything they have on their site for face value.
Lastly, they will do everything they can to get you to their reserve. They will go as far as bid on the seller's behalf. In this format, if you win the bid, you know that it hit the sellers reserve.
*We've bought over 20+ and sold 5 properties on their site. *
Investor · Las Vegas, NV · Member since 2012 · 289 posts · 74 votes
13y
I purchased a residence in March 2013. What everyone mentioned is correct. The transaction went really well. It will take a couple of months to close. The best advice I can add is once you are the winning bidder, remain in contact with the company daily because the property will still be listed elsewhere. Good luck.
SFR Investor · Jacksonville, FL · Member since 2012 · 285 posts · 83 votes
13y
Yeah the bid process is a little wacky, but unlike E-bay, these sneakers are bit more expensive and bidding for them can put you in the poor house quickly. Just set your high amount, most properties never make it past the reserve on the first time, so if you like the property, look at it again, wait for it to come back out and see if you can get it at your price. I purchased a 144000 house for 28500 and have it lease optioned at 55000 now with very little in the way of work. All it will do is go up in value.
If you are uneasy about the title, get a title firm to help you get a check on it. A simple check should cost no more than $25, a more thorough one could cost $150, but it is worth it to know what you are buying.