Getting serious about trustee sales.

Buying & Selling Real Estate
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Getting serious about trustee sales.

David Betz
Carpenter · CA · Member since 2008 · 17 posts · 7 votes

So myself and a friend are looking at buying homes from the trustee sales here in OC and LA county. We have met quite a few people who would be glad to use our money and split the deals 50/50. We don't want to do that.

Here is the good news:
From what I could gather from a gentlemen who buys about 10 properties a month, he is ending up with about $30000 (gross) after he rehabs/sells them. His target is SFR with an ARV 400K give or take. This seems reasonable. Buy for 300K, rehab for $10-25K, and expect 10% to go to commission/closing costs/etc.. These are nice looking homes in decent areas.

I can see the reports on ForeclosureRadar listing what has sold each day at each auction, and we have been standing around watching and writing down the daily history as well. We have driven by many of the sold properties, and done comps on them (no, not on zillow). The deals are there. Period.

Here is the bad news:
Everyone I talk to tells me, "I am going to lose my shirt. I am inexperienced and over my head. Or I am wasting my time trying to find a needle in a haystack (yes, I know almost every one gets cancelled or postponed.) There are no deals or too much competition. There will be some hidden lien that will wipe us out because we are noobs. REO's are a better way to go."

There is a piece or two of the puzzle we've yet to figure out. How do we accurately review title on the MASSIVE # of homes we have to inspect and keep in our database? There are plenty of sites where you can get basic title info, but we are obviously nervous about missing something. There just isn't time to go to the county and look up records on all these places. And there certainly isn't money there to pay title companies for the job. There are just too many properties!

OR

Do we need to get smarter about this and just pony up the dough for title research on a select number of houses, after calling the trustee just before (or on the morning of) the sale date? In the hopes, of course, of having a higher ratio of houses we can bid on? In other words, do all the driving, inspection, and comp work on tons of homes, but only pay for title research on a select few that are more likely to be sold that day.

The fact of the matter is that the same people are at the sales every day, and they aren't there if they are losing money. The answers are out there, we just don't have them all quite yet. Any input is appreciated, even if I file it under the "bad news" column.

Thank you,
David

1Reply
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Most Popular Reply

Mike V.
Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
16y

In my area only the guys with deep pockets play the trustee sale game. Its all about risk/reward, the risk is much higher but so to can be the reward. We had a local investor who did alot of trustee sales speak at a REI club meeting. He wasn't selling anything just giving insight into his world. He gave 4 different extreme examples of profit/loss. His largest profit was over 200K but he had a couple of ~80K losses. In this stage of my life I can't afford to lose 80K so I will stick with REOs/HUDs where I have been averaging 20% of ARV in net profit with relatively low risk (I get to inspect the property, I get clean title, and I only buy if renting it out makes a decent 2nd exit strategy).

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  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    17y

    You want the good news or the bad news? The good items you mentioned are true. That is the good news. The bad items listed are true. That is the bad news.
    As someone who has bought 30-40 homes at tustee sales(Texas) in the last 20 months, all the things you mentioned, I've seen. The question is, which person are you. If you miss a SINGLE IRS lien, you could lose the entire price you paid and have nothing. You need to start slowly, and hire someone to help. (not me btw) It can be very rewarding, but you can truly lose your shirt. Rich.

    4Reply
  • Jim Wineinger
    Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
    17y

    David: Have you thought about teaching a college student how to do the title search? They will often appreciate the title knowledge and be willing to do a lot of your work for you at a fraction of the cost of title companies.

    This may not stop them from missing one small item which is sometimes easily overlooked and it is not an actual guarantee for you, but will weed out the bad ones and you can take a closer look at what it left.

    I do something similar with tax sales and have not had the bad news on any of the properties that I went after.
    The good news has such a great upside that the bad news can be absorbed by the good news.

    3Reply
  • Ariel Y.
    Real Estate Investor · San Diego, CA · Member since 2010 · 40 posts · 2 votes
    16y
    Originally posted by David Betz:
    So myself and a friend are looking at buying homes from the trustee sales here in OC and LA county. We have met quite a few people who would be glad to use our money and split the deals 50/50. We don't want to do that.

    Here is the good news:
    From what I could gather from a gentlemen who buys about 10 properties a month, he is ending up with about $30000 (gross) after he rehabs/sells them. His target is SFR with an ARV 400K give or take. This seems reasonable. Buy for 300K, rehab for $10-25K, and expect 10% to go to commission/closing costs/etc.. These are nice looking homes in decent areas.

    I can see the reports on ForeclosureRadar listing what has sold each day at each auction, and we have been standing around watching and writing down the daily history as well. We have driven by many of the sold properties, and done comps on them (no, not on zillow). The deals are there. Period.

    Here is the bad news:
    Everyone I talk to tells me, "I am going to lose my shirt. I am inexperienced and over my head. Or I am wasting my time trying to find a needle in a haystack (yes, I know almost every one gets cancelled or postponed.) There are no deals or too much competition. There will be some hidden lien that will wipe us out because we are noobs. REO's are a better way to go."

    There is a piece or two of the puzzle we've yet to figure out. How do we accurately review title on the MASSIVE # of homes we have to inspect and keep in our database? There are plenty of sites where you can get basic title info, but we are obviously nervous about missing something. There just isn't time to go to the county and look up records on all these places. And there certainly isn't money there to pay title companies for the job. There are just too many properties!

    OR

    Do we need to get smarter about this and just pony up the dough for title research on a select number of houses, after calling the trustee just before (or on the morning of) the sale date? In the hopes, of course, of having a higher ratio of houses we can bid on? In other words, do all the driving, inspection, and comp work on tons of homes, but only pay for title research on a select few that are more likely to be sold that day.


    The fact of the matter is that the same people are at the sales every day, and they aren't there if they are losing money. The answers are out there, we just don't have them all quite yet. Any input is appreciated, even if I file it under the "bad news" column.

    Thank you,
    David



    David, have you bought at a trustee sale yet? What's your opinion on it because the chaos? I know in OC, there's an investor who has a group of investors and purchase almost 10 every time he's there!
    1Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    I am currently working and following properties at the trustee's sale with one investor. Looking for other investors as well. Im at the LA County Trustee's sale either in norwalk or pomona..Purchasing at the trustee sale requires special knowledge on determining and identifying the right property to acquire. Call me as this is the area I can be of help.

    1Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    I think your #'s stink. 30K profit for a 300K-400K investment? Those are horrible returns, imo for all the risk. If you factor in rehab ,marketing and closing time, it may get worse. I want a much higher % return, on cheaper homes with a quicker turnover. I want a second exit strategy, that if it doesn't sell, I'll rent it and almost make what the guy would make rehabbing in your example above.
    I think most investors are buying less expensive flips and making a higher % return, even in CA. Rich

    2Reply
  • Vikram C.
    Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
    16y

    I don't know how to use the Quote thing and hope it comes out OK.

    Most investors are actually making less money than the OP's numbers. The average selling price at trustee sales (including estimated rehab expenses) in the Phoenix metro has been steadily increasing as a percent of ARV and is now at around 85%. After accounting for closing costs, you end up with a very slim margin.

    I have noticed that a fairly large proportion of the investors here have their own real estate license so they save on selling costs. In addition, many of these investors seem to have been realtors who decided that they wanted to take control over their income stream. The problem is that they seem to be happy making 3% on a property because that's what they think is a reasonable income from a property.

    Trustee sales can be a pretty frustrating business for us investors who think about attractive returns on our invested capital.

    3Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    I like making 3-6% on a property. But I think that Trustee sales yields a higher return than commissions. I do have a real estate license but I think being an investor would be a better position for the specialties I have.
    Trustee sales may be frustrating but that could be a plus for anyone interested in acquiring auction properties.

    I have seen too many good properties just fly by, just because there's not enough bidders there, even in this crazy market.

    1Reply
  • Jason S.
    Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
    16y
    Originally posted by Rich Weese:
    I think your #'s stink. 30K profit for a 300K-400K investment? Those are horrible returns, imo for all the risk. If you factor in rehab ,marketing and closing time, it may get worse. I want a much higher % return, on cheaper homes with a quicker turnover. I want a second exit strategy, that if it doesn't sell, I'll rent it and almost make what the guy would make rehabbing in your example above.
    I think most investors are buying less expensive flips and making a higher % return, even in CA. Rich


    ^^^^ Truth.

    It would amaze me if you are a small investor and survive long with the numbers quoted in the original post. These are properties that are more often than not - occupied - and you are buying without inspection.

    What happens when you inspect the house and find no carpet, dry rot, mold, leaks, etc?

    I know several people at the auctions in OC, LA etc and I just do not know how they do it with such tight margins. Must be because the market has been stable - what happens if it slips again or as I believe makes a major move down again and you are in the middle of an eviction on a home you bought at 85%LTV?

    Scary stuff.

    3Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Vikram- trustee sales can be frustrating. I was buying every month in TX for about a year. I normally had 30-40 properties marked and priced. I attended several auctions (600 properties) where I bought nothing. The MOST I ever bought one month is 4. I made anywhere from 5% to about 60%. Granted, that was in so tx and was winter of 07. I'm sure times have changed.
    I haven't bought anything at foreclosure sale in FL yet. I've been tracking for past few weeks. Only 1 property came in under my buy price and I would've bid and hopefully bought. If I had acquired it, I'm extremely confident that I would've made at least 30% net. Bought for under 57K with 3K fixup and sell for low 70's.
    I would not buy anything that didn't have at least a 20% margin to cover any unknown or mistakes I might make. I'll chronicle any deals I buy from start to finish to colleagues, if interested. Rich

    3Reply
  • Raymond B.
    FL · Member since 2009 · 2k+ posts · 357 votes
    16y

    Quote from Rich:
    I'll chronicle any deals I buy from start to finish to colleagues, if interested. Rich

    Rich, I would be very interested.

    Ray in Ct

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Hi Ray- as a colleague, you'll get them. Rich

    1Reply
  • Jason S.
    Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
    16y
    Originally posted by JCC:
    Originally posted by Rich Weese:
    I think your #'s stink. 30K profit for a 300K-400K investment? Those are horrible returns, imo for all the risk. If you factor in rehab ,marketing and closing time, it may get worse. I want a much higher % return, on cheaper homes with a quicker turnover. I want a second exit strategy, that if it doesn't sell, I'll rent it and almost make what the guy would make rehabbing in your example above.
    I think most investors are buying less expensive flips and making a higher % return, even in CA. Rich


    ^^^^ Truth.

    It would amaze me if you are a small investor and survive long with the numbers quoted in the original post. These are properties that are more often than not - occupied - and you are buying without inspection.

    What happens when you inspect the house and find no carpet, dry rot, mold, leaks, etc?

    I know several people at the auctions in OC, LA etc and I just do not know how they do it with such tight margins. Must be because the market has been stable - what happens if it slips again or as I believe makes a major move down again and you are in the middle of an eviction on a home you bought at 85%LTV?

    Scary stuff.



    With math skills like mine it is amazing I ever get anything to work out ......

    The #'s in the original post Buy at $300K, $20K rehab, 10% Cost of Sale, sell at $400K - those numbers are not bad. I apologize.

    The problem is that I do not know anyone at these sales getting props at that low a price. Every time I talk to someone who buys at the Courthouse Steps they are in a property for 85%ARV.

    You are seeing numbers in LA and OC that are better than this? Care to share any addresses, not yours of course, just ones that we can analyze that other have purchased. I would be interested to see some - I randomly pulled some from Trustees Deeds recently (pulled ones that were 'sold to third party' and then did a value analysis and the prices were way too high for me.

    2Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    I may be shocked when I start buying in FL, but I still don't like the #'s I have to do better than that, or find another way to make money!
    Using #'s in example.
    300K price
    17.5 in rehab(avg between assumed 10-25K in example)
    400K selling price
    40K commission and costs
    317.5K total invested
    42.5K net = 13% return on money.

    If you are using borrowed money, need to add the interest which will decrease % gained. If you miss anything in your projections, that you find after you buy, amount will decrease more.
    The other item I don't like is price range. No double exit strategy. What IF it doesn't sell? You can't rent home out and get any kind of a return on your money.
    If you invested somewhere else on the same ratios in a 100K home, you'd make 13% or 13K. If it didn't sell. you'd get close to same return by renting it. That is a 2nd exit strategy.
    Again, I may find I,m nits, but I expect to do better, or I won't do it. Rich

    4Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y
    Originally posted by JCC:
    Originally posted by JCC:
    Originally posted by Rich Weese:
    I think your #'s stink. 30K profit for a 300K-400K investment? Those are horrible returns, imo for all the risk. If you factor in rehab ,marketing and closing time, it may get worse. I want a much higher % return, on cheaper homes with a quicker turnover. I want a second exit strategy, that if it doesn't sell, I'll rent it and almost make what the guy would make rehabbing in your example above.
    I think most investors are buying less expensive flips and making a higher % return, even in CA. Rich


    ^^^^ Truth.

    It would amaze me if you are a small investor and survive long with the numbers quoted in the original post. These are properties that are more often than not - occupied - and you are buying without inspection.

    What happens when you inspect the house and find no carpet, dry rot, mold, leaks, etc?

    I know several people at the auctions in OC, LA etc and I just do not know how they do it with such tight margins. Must be because the market has been stable - what happens if it slips again or as I believe makes a major move down again and you are in the middle of an eviction on a home you bought at 85%LTV?

    Scary stuff.



    With math skills like mine it is amazing I ever get anything to work out ......

    The #'s in the original post Buy at $300K, $20K rehab, 10% Cost of Sale, sell at $400K - those numbers are not bad. I apologize.

    The problem is that I do not know anyone at these sales getting props at that low a price. Every time I talk to someone who buys at the Courthouse Steps they are in a property for 85%ARV.

    You are seeing numbers in LA and OC that are better than this? Care to share any addresses, not yours of course, just ones that we can analyze that other have purchased. I would be interested to see some - I randomly pulled some from Trustees Deeds recently (pulled ones that were 'sold to third party' and then did a value analysis and the prices were way too high for me.



    Here's one of C-Note Advantage, LLC's Property BUY LIST:

    Hi Judy,
    Just wanted to give you details on one that I was following to purchase

    Property address: 15218 Cobalt Street Sylmar Ca 91342
    6/4/99 $260,000 Grant Deed Cruz Ceniceros to Teresa Ceniceros
    4/2/02 Lis Pendens
    1/16/03 Lis Pendens
    12/9/03 Award
    6/7/05 Grant Deed Teresa Ceniceros to Marianne Ceniceros
    6/30/05 $250,000 MIT Lending(Foreclosing Trust Deed)
    3/8/07 $310,000 First Magnus (Trust Deed)
    4/9/09 $125,000 (Private Trust Deed)
    4/9/09 $125,000 (Private Trust Deed) Recorded twice
    10/9/09 NOD
    1/21/10 NTS
    5/27/10 $325,200 SOLD TO THIRD PARTY

    Just thought it might be interesting to share this.
    Please verify and let me know how accurate my(I mean C-Note Advantage, LLC's) research is.

    Edgar
    Broker 01312077, acting as Principal-Only

    0Reply
  • Mike V.
    Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
    16y

    In my area only the guys with deep pockets play the trustee sale game. Its all about risk/reward, the risk is much higher but so to can be the reward. We had a local investor who did alot of trustee sales speak at a REI club meeting. He wasn't selling anything just giving insight into his world. He gave 4 different extreme examples of profit/loss. His largest profit was over 200K but he had a couple of ~80K losses. In this stage of my life I can't afford to lose 80K so I will stick with REOs/HUDs where I have been averaging 20% of ARV in net profit with relatively low risk (I get to inspect the property, I get clean title, and I only buy if renting it out makes a decent 2nd exit strategy).

    5Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    16y

    Just throwing my $0.02 worth in here, for whatever that's worth :wink:

    I attend sheriff sales regularly in my area. Many bidders are realtors, and I guess they either think that they are going to be saving the 3% by self-listing the property for re-sale, or they think that just getting a commission at re-sale is worthwhile. I'm not sure why, but there are just too many bidders willing to way over-pay based on my criteria.

    My criteria: it must make money, and over-paying is one sure way to not do that.

    $300K foreclosures that haven been in and out of foreclosure for many years (example above shows a few years) will have LOTS of deferred maintenance, and will therefore need LOTS of dollars poured into rehab. IMO, the 10K - 25K range seems way too low for property that has been under distress conditions for that long.

    Think about what you would do in a typical quality flip. New kitchen and baths. New roof if needed. New HVAC if needed. New paint and flooring. All this stuff adds up.

    Again,the objective is not to own houses, it's to make money; houses are just a means to that end.

    Again, that was just my $0.02 worth ...

    3Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    Here's one of C-Note Advantage, LLC's Property BUY LIST:

    Hi Judy,
    Just wanted to give you details on one that I was following to purchase

    Property address: 15218 Cobalt Street Sylmar Ca 91342
    6/4/99 $260,000 Grant Deed Cruz Ceniceros to Teresa Ceniceros
    4/2/02 Lis Pendens
    1/16/03 Lis Pendens
    12/9/03 Award
    6/7/05 Grant Deed Teresa Ceniceros to Marianne Ceniceros
    6/30/05 $250,000 MIT Lending(Foreclosing Trust Deed)
    3/8/07 $310,000 First Magnus (Trust Deed)
    4/9/09 $125,000 (Private Trust Deed)
    4/9/09 $125,000 (Private Trust Deed) Recorded twice
    10/9/09 NOD
    1/21/10 NTS
    5/27/10 $325,200 SOLD TO THIRD PARTY

    Just thought it might be interesting to share this.
    Please verify and let me know how accurate my(I mean C-Note Advantage, LLC's) research is.

    Edgar
    Broker 01312077, acting as Principal-Only

    By the way, The comparables on this property is somewhere around $515,000-$525,000 range...so easy math would let you know if this is a good buy or not. considering also some of the liens on the property that you have to deal with.
    Edgardo E. Cruz
    Broker 01312077, acting as Principal-Only
    Managing Member of C-Note Advantage, LLC

    0Reply
  • Jason S.
    Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
    16y
    Originally posted by Edgardo Cruz:
    Here's one of C-Note Advantage, LLC's Property BUY LIST:

    Hi Judy,
    Just wanted to give you details on one that I was following to purchase

    Property address: 15218 Cobalt Street Sylmar Ca 91342
    6/4/99 $260,000 Grant Deed XXXX to XXX
    4/2/02 Lis Pendens
    1/16/03 Lis Pendens
    12/9/03 Award
    6/7/05 Grant Deed XXXs to XXX
    6/30/05 $250,000 MIT Lending(Foreclosing Trust Deed)
    3/8/07 $310,000 First Magnus (Trust Deed)
    4/9/09 $125,000 (Private Trust Deed)
    4/9/09 $125,000 (Private Trust Deed) Recorded twice
    10/9/09 NOD
    1/21/10 NTS
    5/27/10 $325,200 SOLD TO THIRD PARTY

    Just thought it might be interesting to share this.
    Please verify and let me know how accurate my(I mean C-Note Advantage, LLC's) research is.

    Edgar
    Broker 01312077, acting as Principal-Only

    By the way, The comparables on this property is somewhere around $515,000-$525,000 range...so easy math would let you know if this is a good buy or not. considering also some of the liens on the property that you have to deal with.
    Edgardo E. Cruz
    Broker 01312077, acting as Principal-Only
    Managing Member of C-Note Advantage, LLC


    I went ahead and took out the names of the owners - would hate to have Google pick up there names and add grief to their already complicated situation. Please do not take offense Edgardo, its just that anything posted on this forum has a way of eventually ending up on page 1 of google.

    I am looking at the comps for this property and, granted I do not know the area, but the most recent sold looks like it is around the corner, same neighborhood, and its a 4/3 2368 sqft for $300K MLS sold 3/19/10. And the subject prop above is 2616 sqft. Is the subject really worth the $515K? I will defer to you Edgardo because I do not know the area and was interested to see the numbers.

    0Reply
  • Eric M.
    Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    16y
    Originally posted by JCC:
    Originally posted by Edgardo Cruz:

    Property address: 15218 Cobalt Street Sylmar Ca 91342

    5/27/10 $325,200 SOLD TO THIRD PARTY

    Just thought it might be interesting to share this.
    Please verify and let me know how accurate my(I mean C-Note Advantage, LLC's) research is.

    Edgar
    Broker 01312077, acting as Principal-Only

    By the way, The comparables on this property is somewhere around $515,000-$525,000 range...so easy math would let you know if this is a good buy or not. considering also some of the liens on the property that you have to deal with.
    Edgardo E. Cruz
    Broker 01312077, acting as Principal-Only
    Managing Member of C-Note Advantage, LLC

    I don't know the area either but Zillow says it is worth $379,000 and I didn't see any comps that make me think they are way off.

    0Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    1. Properties in foreclosure are all public records.
    2. I dont do comps at Zillow
    3. MLS Comps-please consult with appraiser on how they value properties and come as close to how they comp out properties. I only gave a value range as this is my opinion on what the property may sell for. Im usually at a good ball park, and I would stand on that since that is what I would resell it for if the company was the one taking title.
    Edgar

    0Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    Thanks for everyone's input....I think this might be culture thing but I still like to "save face".

    Here's one for the team---because I like biggerpockets.com (It's free but just be careful) I may not be chasing this anymore since I gave it away to you here. (I might change my mind later, lol) Oh and this might be worth a little more than a penny. Hope this makes everyone happy here.
    ----------------------------------------------------------
    ADVISORY:
    1. YOU CAN LOSE ALL YOUR MONEY-BUY AT YOUR OWN RISK
    2. INFORMATION PROVIDED BY C-NOTE ADVANTAGE,LLC AS A COURTESY ONLY
    3. MAKE SURE YOU PERFORM YOUR OWN INVESTIGATIONS AS TO THE ACCURACY OF THE INFORMATION PROVIDED. THIS INFORMATION IS NOT GUARANTEED. PLEASE PULL YOUR OWN PRELIMINARY TITLE REPORT (PRELIM), VERIFY THE PROPERTY CONDITION, CHECK WITH YOUR APPRAISER, ECT. (CALLED DUE DILIGENCE-YOU GUYS ARE GOOD WITH THIS)
    4. DO NOT ATTEMPT TO CONTACT THE HOMEOWNER BY MAIL/PHONE/DIRECTLY/OR ANY OTHER WAY PRIOR TO CONSULTING WITH YOUR REAL ESTATE ATTORNEY AND OTHER APPROPRIATE PROFESSIONALS (PEOPLE IN FORECLOSURE ARE PROTECTED BY LAW)
    5. CONSULT WITH YOUR ADVISORS IF YOU ARE TAKING THIS POSTING SERIOUSLY
    6. THERE IS NO OBLIGATION IF YOU WANT TO ACQUIRE THIS PROPERTY ON YOUR OWN AT YOUR OWN RISK.
    7. I AM NOT AN ATTORNEY/ACCOUNTANT/FINANCIAL ADVISOR/APPRAISER. I AM JUST A BROKER ACTING AS PRINCIPAL-ONLY(INVESTOR)
    ----------------------------------------------------------ACTIVE C-NOTE ADVANTAGE, LLC FORECLOSURE FILE MASTER LIST. FILE NUMBER:CNA250000LLC

    ADDRESS: 11756 GLENCREST DRIVE, SAN FERNANDO, CALIFORNIA 91340
    3BED+2BATH SINGLE FAMILY RESIDENCE APPROXIMATELY 1512 SQUARE FEET YEAR BUILT 1956
    FORECLOSURE DATE: 06/21/10 ESTIMATED DEBT OR OPENING BID $189,334.50
    AUCTION TO BE HELD AT: 12720 NORWALK BLVD, NORWALK, CALIFORNIA
    INFOLINE: (619) 590-1221
    TRUSTEE SALE NUMBER 121690415

    FINDINGS:
    7/22/96 GRANT DEED----(ORIGINAL OWNERS BOUGHT AT THIS PRICE)
    --------------------------------------------$129,000
    2/2/98 TRANSFER DEED FROM AB OWNERS TO BC OWNERS AS JOINT TENANTS
    5/13/03 JUDGEMENT CHILD SUPPORT-----------------------------$
    1/2/04 TRANSFER DEED FROM C OWNER TO B OWNER
    1/26/06 FORECLOSING FIRST TRUST DEED-----------------(AAMES FUNDING CORP)-------------------$176,000
    10/21/09 JUDGEMENT--------$6,604.85
    12/15/09 TAX LIEN--------------$1,369.83
    5/5/10 JUDGEMENT CHILD SUPPORT-----------------------------$
    5/22/09 NOTICE OF DEFAULT
    8/27/09 NOTICE OF TRUSTEE'S SALE
    COMPS MLS/TITLE$307,500-$317,500

    This information is FREE to the Public. Any information contained herein may be deemed reliable but may not be accurate. You are advised to do your own due diligence to verify the contents of this data/posting.

    Please vote or reply if you like or not like this posting. I will take it as a bigger brother/sister giving good advise to his younger brother and take it as a learning experience and not take offence. I hope you like C-Note's Advantage, LLC's research. Wish you all the best in your investing!

    I hope this might be serious enough for the subject "GETTING SERIOUS WITH TRUSTEE SALES"
    EDGARDO E. CRUZ, BROKER, ACTING AS PRINCIPAL-ONLY
    MANAGING MEMBER OF C-NOTE ADVANTAGE, LLC

    0Reply
  • Eric M.
    Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    16y

    Ok, that is fine information but show your comps to support your estimated value.

    A larger house down the street at 11338 Glencrest sold a year ago for $215,000.
    http://www.redfin.com/CA/San-Fernando/11738-Glencrest-Dr-91340/home/5456554
    and a larger one around the corner on Vaughn sold yesterday for $194,500. It is a fixer but we don't know the condition of your recommendation either.

    I guess to save face you might have to post details of a house you have bought and sold.

    0Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    CONDITION OF PROPERTY:Well the condition of any property going into a Trustee Sale is usually unknown since the foreclosing owner normally wouldnt let anyone in, or you might not be able to find them. If you are planning to resell it, you would want to fix it up so that it would be justifiable for your appraiser to appraise at the prices of homes similar to it are selling.
    I might not use a property that sold last year because its way too old for a comp. One that sold yesterday should be checked what type of sale it was, if it was a regular sale or an auction sale. Of course I would be reselling mine as a regular sale...so apples to apples, oranges to oranges.

    CREDIBILITY: Any Subway Sandwich owner or McDonalds or any frachise owner may not have any experience or track record as far as how well they would perform but they are owners of the company..Anybody has to start with knowledge and property rehab project number 1.

    COMPARABLES: You need to either check with your Title Company or a Local Agent to determine how much the property might sell for. If you have access to MLS, it would be easier, since you are in the business..

    Hope this is ok with you.

    Edgar

    0Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2010 · 33 posts · 4 votes
    16y

    Property has been "taken off the calendar"..fyi only

    0Reply
  • Shari Posey
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    16y

    Edgardo,
    I'm not clear if you are buying these properties yourself and putting skin in the game OR are you working with investors to provide information and then acting as their agent to sell the properties?

    0Reply
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