Just went to auction, most interesting one I&#x27;ve seen in awhile

Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes

Originally posted by @Mark Updegraff:

@Frank Oudheusden Single Family. I can't get over the image of that chic with a purse FULL of cash. wonder how she got it...

was she HOT & it was all $1 bills !!!

We had a young Marine buy a place & we held the HML

He admitted that he didn't have a checking account or a CC so the filing fees, legal fee etc were paid in cash as we proceeded with the close.

Then finally he laid out the balance of $13,000 in $100 bills. He has an interesting power washing niche he got into & we never turned him down on any future loans.

As far as buying high we have watched a lot of tax lien properties go for way beyond value just because the buyer wants to live in it or thinks they got a deal. The sad thing is many believe that the 'assessed value' is the true market value.

Troy Fisher

Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes

Originally posted by @Donald Hendricks:

Why is there always "that guy" at every auction? Ruins it for everyone for his own greed and if isn't going to get he runs up the price and bails.

They are everywhere. They swept into town with the foreclosure markets and were able to capture huge returns. Now they are the big boys in town, and unless you are a regular and get in good with them they are going to ruin you so that you don't come back. It's part of the business and unfortunately if you don't know what you are getting into, you can have some pretty costly mistakes.

Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes

Originally posted by @Troy Fisher:

Originally posted by @Donald Hendricks:

Why is there always "that guy" at every auction? Ruins it for everyone for his own greed and if isn't going to get he runs up the price and bails.

They are everywhere. They swept into town with the foreclosure markets and were able to capture huge returns. Now they are the big boys in town, and unless you are a regular and get in good with them they are going to ruin you so that you don't come back. It's part of the business and unfortunately if you don't know what you are getting into, you can have some pretty costly mistakes.

I keep track of each winning $bid & the bidding # or name if I know who it is as some buy 10 or more.

What I have found, several months later, these same properties appear on Craigslist for $10-$15k more. With the disclaimer 'we have too many properties' .... 'our loss is your gain'.

The prospective buyer is responsible for all closing costs, search, survey, including those of the seller. They may sit for awhile they do get eventually buyers !!!

So if you have the cash it's an interesting niche.

Dallas, TX · Member since 2013 · 4k+ posts · 744 votes

The last auction I went to I saw a shill there just bidding up the proprieties for the seller, and I said really loud that we have a shill bidding with no intentions on buying, and both of us were asked to leave, and it burnt that shill. I knew the shill from other auctions.

Joe Gore

David Krulac

Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes

@Mark Updegraff

At one such sale 1 bidder was bidding on everything and bidding high, he spend $1.7 million that day, payment due in full 10 minutes after the auction is done.

At another auction saw a bidder (novice) come to the sale with an extremely large zip lock bag filled with $100. Since it was clear plastic bag everybody could see what he had. Perhaps that's a good ploy, but I'm not carrying clear plastic bags on the street filled with Benjamins. People might get the wrong idea of what kind of business you're in or might want to relieve your of your baggie.

Another bidder i saw had a large manilla envelope filled with $100, at least it wasn't so transparent.

People get carried away at auctions and often bid retail or near retail prices and there always seems to be big money in the room, so your experiences don't surprise me.

Ann Watkins

Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes

@Mark Updegraff

Hi Mark,

I've written a couple of post on my auction experience here in Houston, at the Harris County Constable's Auction. Our experiences pretty much mimic each other. Here, there is an older Indian couple and a few other regulars who seem to just buy up everything.

I go even when I'm not buying just to study their habits and drink the horrid courthouse coffee. And it's always a spectacle to watch when the strippers come in and want to argue about why they have to take off their stilettos to go through the metal detector...on their way to Child Support hearings...anyway the auction.

So yes, it's my understanding the Indian couple will buy anything and everything because they turn around and rent it to whomever is currently living in the property or anyone who is willing to rent it as is.

There is another really really tall guy (hope he's not reading this) who buys until he and his cohorts run out of cashier's checks. Supposedly he's bidding for the banks. He keeps a briefcase guy with him at all times.

I Mark, am the lady with the purse full of cash....or well at least I was the first time, because the banks were closed that Monday before the sale and the only thing I could do was run around to one Western Union after the next transferring cash from my accounts.

I got it together on my next auction and got cashier's checks for up to the minimum bid and then a purse full of cash for my cut-off..lol. Some folks don't do their homework and never decide upon a cut-off. That's some buyer's remorse I can do without.

This past auction a full brick 3-2 with a pool had a starting bid for $10k. I went and actually got in the property and walked around. I estimate it needed about maybe $5k to get going without upgrades. Assuming the pool was okay and I think it was as their was water in it. So it probably didn't have too much wrong with it.

I wasn't able to make it to the auction but I wonder what it went for. It's listed on HAR now for $78k....as is. Comps show it will easily sell for $99,5k. Someone made out royally on that one.

Patrick L.

Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes

Those sound like quite common things to see if you attend auctions regularly.

There's usually at least big fish that wants to knock any newbies out by driving the prices up. The motive behind that is either the new bidder gives up and don't come back when they can't buy anything or they get stuck paying too much and lose money and don't come back. If the big time buyer buys the property at around the break even point it's still making the point that there aren't any deals to be had here and maybe the new bidders never return.

As for paying cash it's very common, especially with auctions that require immediate payment. It's easier than getting 100 cashiers checks of various denominations and then returning them all when you don't use them.

Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes

Originally posted by Ann Watkins:

@Mark Updegraff

I go even when I'm not buying just to study their habits and drink the horrid courthouse coffee. And it's always a spectacle to watch when the strippers come in and want to argue about why they have to take off their stilettos to go through the metal detector...on their way to Child Support hearings...anyway the auction.

You have the observant mind of a great writer :)

Steve Babiak

Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes

Last sheriff sale in my area, two rookies got into a bidding war on a SECOND position even AFTER the Lender's attorney announced that there was a first for roughly $500K. Another bid on a municipal lien subject to both underlying first and second position mortgages (yes in PA municipal liens can be subordinate to mortgages).

So anything can be expected to happen since it is an event open to the general public.

Steve Babiak

Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes

Originally posted by @Patrick L.:

...

As for paying cash it's very common, especially with auctions that require immediate payment. It's easier than getting 100 cashiers checks of various denominations and then returning them all when you don't use them.

Re-depositing cash and official checks is about the same effort IMO; but if you lose an official check made out to the sheriff's dept whoever finds it isn't getting cash ...

Mark UpdegraffBusiness Member

OP

Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 706 votes

Podcast Guest on Show #112

I've been to about 50 and this is the first time I saw someone whip out cash. I get free cashier's checks at my bank. I usually get 1's 5's and 10's and use what I need. I would never consider walking in with cash... just too many yayhoots running around the streets. Last thing you want to be known for is the dude with cash!

Updegraff Group Realty4.746 Reviews

Website View Page

Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes

My farm counties all went to online bidding for tax sales in 2001. My first and only live tax sale was the last one held in my county. I wanted a rural 7 acre vacant parcel. I'd figured out my max. amount but hadn't anticipated sitting there for hours waiting my parcel to be called.

I stupidly sat in the front row of a large auditorium with hundreds of people attending. I could turn around and watch the bidding behind me and there was one guy that bought pretty much everything. Hundreds and hundreds of parcels. When my parcel was called I had to face the front, so I had no idea who or how many people were bidding against me. I went up to my max. amount and the other bidder dropped out. When I left to go pay, several other people approached me wanting to know what I had bought because I had been bidding against the big buyer. I said vacant land. I couldn't say much more because I hadn't actually seen it. We drove out to see it that afternoon. The whole way there I wondered if I had been played into paying too much by that guy. But it all turned out fine. The parcel was great and I sold it to the neighbor for twice what I paid at sale.

@Mark Updegraff Is your tax sale there an actual tax deed sale? Or a tax lien cert sale?

Mark UpdegraffBusiness Member

OP

Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 706 votes

Podcast Guest on Show #112

@K.

@Account Closed undefined

Foreclosure of tax liens by ATF.

Updegraff Group Realty4.746 Reviews

Website View Page

Robert Steele

Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes

Originally posted by @Mark Updegraff:

The best part of the story... the girl that won opened her purse FULL OF CASH and started counting it out to the ref. UNREAL!

I often wonder why people aren't mugged coming out of tax sales. I guess the thieves don't know about it.

Robert Steele

Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes

Originally posted by @Patrick L.:

As for paying cash it's very common, especially with auctions that require immediate payment. It's easier than getting 100 cashiers checks of various denominations and then returning them all when you don't use them.

Actually you don't need 100 cashiers checks. If your max bid is $100K then you only need the following to meet any number less than that.

$50K

$25K

$10K

2 x $5K

$5K in cash

That's only 5 checks! You can actually do it in 4 but the math is harder.

Dawn AnastasiPro Member

Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes

Podcast Guest on Show #29

Originally posted by @Pat L.:

Originally posted by @Mark Updegraff:

@Frank Oudheusden Single Family. I can't get over the image of that chic with a purse FULL of cash. wonder how she got it...

was she HOT & it was all $1 bills !!!

Interesting how when it's a man, he has the money because he is successful at business, but when it's a woman, it's probably all in singles ...

Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes

Originally posted by @Dawn Anastasi:

Originally posted by @Pat L.:

Originally posted by @Mark Updegraff:

@Frank Oudheusden Single Family. I can't get over the image of that chic with a purse FULL of cash. wonder how she got it...

was she HOT & it was all $1 bills !!!

Interesting how when it's a man, he has the money because he is successful at business, but when it's a woman, it's probably all in singles ...

I've known some exotic dancers and private escorts that made truly fabulous money. They don't get paid in singles.

Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes

@Dawn Anastasi Et Tu @Account Closed

Before you ladies fly off into a ‘public’ anti-misogynistic tangent.

You may want to exhibit some degree of insight.

I do hold the 1st Mortgage notes for two ladies who accumulate their respective wealth $1 at a time & of their own admission they are ‘HOT'.

This is a photo receipt I took of a bi-monthly mortgage payment.

It may surprise you that I certainly consider them very successful.

Also be advised that given the inherent risks associated with their vocations we are actively pursuing a rental property for one to allow her to ‘eventually’ become self sufficient.

Maybe next time you could exhibit some restraint & common decency & just PM me about your concerns rather than a pubic ‘off topic lashing’. Furthermore, I would assume the latter is a prima facie violation of being an esteemed Moderator ??

hic clausula

Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes

Originally posted by @Pat L.:

@Dawn Anastasi Et Tu @Account Closed

Before you ladies fly off into a ‘public’ anti-misogynistic tangent.

You may want to exhibit some degree of insight.

I do hold the 1st Mortgage notes for two ladies who accumulate their respective wealth $1 at a time & of their own admission they are ‘HOT'.

This is a photo receipt I took of a bi-monthly mortgage payment.

It may surprise you that I certainly consider them very successful.

Also be advised that given the inherent risks associated with their vocations we are actively pursuing a rental property for one to allow her to ‘eventually’ become self sufficient.

Maybe next time you could exhibit some restraint & common decency & just PM me about your concerns rather than a pubic ‘off topic lashing’. Furthermore, I would assume the latter is a prima facie violation of being an esteemed Moderator ??

hic clausula

I can't speak for Dawn but I really do know well paid dancers and escorts (and one former Penthouse Pet) and they are really well paid. They don't make their money in $1 tips. Far from it. And your picture above shows a $50 right on top. Which kind of illustrated my point.

Dawn AnastasiPro Member

Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes

Podcast Guest on Show #29

Originally posted by @Account Closed:

I think you misunderstood me.

I have nothing against either men or women who are "hot".

I have nothing against either men or women who are successful.

I have nothing against either men or women who are strippers.

I only have issues against stereotypes, such as women who have a purse full of cash must be strippers, or that men who have a briefcase full of cash must be in the mob (or any stereotype).

Patrick L.

Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes

Originally posted by @Account Closed:

I can't speak for Dawn but I really do know well paid dancers and escorts (and one former Penthouse Pet) and they are really well paid. They don't make their money in $1 tips. Far from it. And your picture above shows a $50 right on top. Which kind of illustrated my point.

It looks like a huge pile of $1's with a single $50 bill on top. It's annoying enough when tenants pay $1k in cash with 20's, I can't imagine counting $1's all day. I'd definitely refuse that pile and tell them to go buy a money order.....yet another reason I don't rent to strippers.