Auction.com

4 Replies

Looking at a commercial property on auction.com and thinking of registering to bid? Tips? Anyone? Never done auction.com before. I'm a newbie here and I own a commercial property wherein financing was through the bank and my question is what if I win the bid at the auction.com - what is the time frame given to secure funding?

Christine, 

I don't have any experience myself. However, in BP Pocast 136, @Shawn Holsapple explains how Auction.com is one of his main sources for leads. It seems very easy and straight forward. I was encouraged by the episode to give it a shot myself.

Here is a link to the episode: http://www.biggerpockets.com/renewsblog/2015/08/20/bp-podcast-136-building-an-incredible-real-estate-pipeline-with-shawn-holsapple/

Copied and Pasted...

Buying Commercial Properties

Buyer must provide proof of funds prior to bidding. Proof that you can acquire and close escrow within the timeline is required. 

1. Getting Started

Find a property of interest, complete your due diligence and fill out the Buyer Information. Be sure to confirm auction dates and times.

2. Register Your Broker

For your broker to receive a commission, you must identify your broker during your registration. A commission must be offered and your broker must be licensed in the state where the property is located. In addition, your broker must register for your property of interest at least 24 hours in advance of the auction.

3. Register for Multiple Properties

You can continue to add or remove listings to your event registration. If you wish to add a property after you have submitted your initial deposit, you will need to repeat this process.

4. Place a Deposit

Deposits are taken online with a credit card authorization, via a wire transfer or cashier's check. For wire transfers and cashier's checks, additional documents are required.

5. Authorize

Confirm your properties, your deposit amount due and accept and agree to Auction.com’s terms and privacy statement.

6. Additional Offline Steps

Prior to auction day, you'll need to provide a Bidder Qualification Form along with proof of funds for the amount equal to the maximum bid that you wish to place. Proof of funds must be in the form of cash, cash equivalent or readily marketable securities listed on a major exchange and must be available immediately without restriction. The acceptance of any proof of funds documentation is made at the sole and absolute discretion of Auction.com.

Acceptable proof of funds documentation;

  • Recent bank statements
  • Brokerage account statements
  • Bank letters
  • Line-of-credit statement (must be already closed and in place, with an undrawn capacity and funded immediately without bank approval)

    Proof of funds consideration;

  • Documentation from a foreign financial institution
  • Capital call agreements
  • Investor equity commitment

    Unacceptable proof of funds documentation;

  • Loan pre-approval letters
  • Term sheets and the like, where the loan would be collateralized by the property for auction and funded at escrow closing
  • 7. Submit Your Offline Documents

    You can submit your Bidder Qualification Forms, proof of funds and entity documentation in 1 of 3 ways:

  • Directly to the Auction.com Representative listed on the property page
  • By fax: 800-810-4763
  • By email: [email protected]
  • Note: To follow up, contact customer service at 888-770-7332.
  • 8. Entity Documentation

    If you are purchasing under a legal entity other than your personal name (such as a formed corporation, partnership, LLC or trust), Auction.com requires evidence demonstrating ownership and control of the entity, as well as evidence that the entity is in good standing. Bidding as a foreign (non-U.S.) entity is not permitted.

    9. Auction Day

    By auction day, your online and offline materials must be submitted and you must be approved to bid. Bids can be placed from the property page.

    10. Winning Bid

    To win, you must be the highest bidder. Following the auction, the highest bidder will receive a confirmation email with information on steps to complete the transaction. They will also be contacted within hours of the auction end to confirm the contract and the specifics of the sale.

    If you are the winning bidder, you will need to submit the following items:

  • • Signed contract (within 2 hours of auction end)
  • Earnest Money Deposit (within 1 business day of auction end)
  • Note: If you are the winning bidder and you do not provide these 2 items by their due dates,

    Auction.com will retain your credit card, cashier's check or wire transfer deposit.

    If you are not the winning bidder;

  • The credit card hold will be released from your account and the funds will be available again within seven business days after the end of the auction.
  • Originally posted by @Nick Baldo :

    Christine, 

    I don't have any experience myself. However, in BP Pocast 136, @Shawn Holsapple explains how Auction.com is one of his main sources for leads. It seems very easy and straight forward. I was encouraged by the episode to give it a shot myself.

    Here is a link to the episode: http://www.biggerpockets.com/renewsblog/2015/08/20/bp-podcast-136-building-an-incredible-real-estate-pipeline-with-shawn-holsapple/

     Thank you so much Nick. 

    Originally posted by @Walter Key :

    Copied and Pasted...

    Buying Commercial Properties

    Buyer must provide proof of funds prior to bidding. Proof that you can acquire and close escrow within the timeline is required. 

    1. Getting Started

    Find a property of interest, complete your due diligence and fill out the Buyer Information. Be sure to confirm auction dates and times.

    2. Register Your Broker

    For your broker to receive a commission, you must identify your broker during your registration. A commission must be offered and your broker must be licensed in the state where the property is located. In addition, your broker must register for your property of interest at least 24 hours in advance of the auction.

    3. Register for Multiple Properties

    You can continue to add or remove listings to your event registration. If you wish to add a property after you have submitted your initial deposit, you will need to repeat this process.

    4. Place a Deposit

    Deposits are taken online with a credit card authorization, via a wire transfer or cashier's check. For wire transfers and cashier's checks, additional documents are required.

    5. Authorize

    Confirm your properties, your deposit amount due and accept and agree to Auction.com’s terms and privacy statement.

    6. Additional Offline Steps

    Prior to auction day, you'll need to provide a Bidder Qualification Form along with proof of funds for the amount equal to the maximum bid that you wish to place. Proof of funds must be in the form of cash, cash equivalent or readily marketable securities listed on a major exchange and must be available immediately without restriction. The acceptance of any proof of funds documentation is made at the sole and absolute discretion of Auction.com.

    Acceptable proof of funds documentation;

  • Recent bank statements
  • Brokerage account statements
  • Bank letters
  • Line-of-credit statement (must be already closed and in place, with an undrawn capacity and funded immediately without bank approval)

    Proof of funds consideration;

  • Documentation from a foreign financial institution
  • Capital call agreements
  • Investor equity commitment

    Unacceptable proof of funds documentation;

  • Loan pre-approval letters
  • Term sheets and the like, where the loan would be collateralized by the property for auction and funded at escrow closing
  • 7. Submit Your Offline Documents

    You can submit your Bidder Qualification Forms, proof of funds and entity documentation in 1 of 3 ways:

  • Directly to the Auction.com Representative listed on the property page
  • By fax: 800-810-4763
  • By email: [email protected]
  • Note: To follow up, contact customer service at 888-770-7332.
  • 8. Entity Documentation

    If you are purchasing under a legal entity other than your personal name (such as a formed corporation, partnership, LLC or trust), Auction.com requires evidence demonstrating ownership and control of the entity, as well as evidence that the entity is in good standing. Bidding as a foreign (non-U.S.) entity is not permitted.

    9. Auction Day

    By auction day, your online and offline materials must be submitted and you must be approved to bid. Bids can be placed from the property page.

    10. Winning Bid

    To win, you must be the highest bidder. Following the auction, the highest bidder will receive a confirmation email with information on steps to complete the transaction. They will also be contacted within hours of the auction end to confirm the contract and the specifics of the sale.

    If you are the winning bidder, you will need to submit the following items:

  • • Signed contract (within 2 hours of auction end)
  • Earnest Money Deposit (within 1 business day of auction end)
  • Note: If you are the winning bidder and you do not provide these 2 items by their due dates,

    Auction.com will retain your credit card, cashier's check or wire transfer deposit.

    If you are not the winning bidder;

  • The credit card hold will be released from your account and the funds will be available again within seven business days after the end of the auction.
  •  Hi Walter,

    Thank you soooo very much for taking the time to copy and paste this info.

    Greatly appreciated.

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