Looking to find out how the process went and was there any information that I need to know?
Ask @Mehran K. he purchased a property from Auction.com.
I think @Raji Ahmed did too and posted about it
@Jay Whitfield hey. Yes I've bought from auction.com. The first time went smooth, no issues or surprises. I went with a Vacant property that was on the MLS before and it was a cash deal. I just purchased my second one and waiting for closing in a week or so. Do you have specific questions? Have you had experience with it? I would be happy to help in any way.
Hi, @Raji Ahmed i heard its a lot of trouble to purchase from auction.com is that true?
@Bob R. Not in my experience. Im sure others may
Have had issues. But I played it safe for the most part. I bid on properties that were on MLS so I could see the history of it somewhat. I only dealt with vacant properties so there was no complications with removing tenants. And both of the deals I was involved with are cash deals. Title was clear. I even got tax credit which wasnt guaranteed. Knock on wood, so far I havent had issues with them.
Thanks so much @Raji Ahmed Every property i looked at on auction.com has been cash deals its one property in particular that has been on there a few months with winning bids and meeting the reserve price but they keep putting it back on the site .
@Bob R. Yeah that can be annoying but basically the bank wants more money. And its possible that the winning bidder was auction.com. They even disclose on the website that to meet the reserve that auction.com will, on behalf of the seller, bid on some properties to drive up the price. And even then bank can reject the offer. I recently had another house I was the final bidder on and I was real excited because it was a great deal. But after submitting all the paperwork and sending the EMD, the bank rejected it and now its back on auction. So its not that this process doesnt work it just doesnt always work in our favor. But you have to know what you're getting into and set expectations based on that. It can work, that I know. Good luck. :-)
Thanks for the information, I tracked some properties and wanted to know how the process went. Think I will give it a chance and see how it goes. Thanks again.
Did you run a title search before bidding on the properties??
Read the auction rules for That particular auction and property. Some are sold via QCD, some Special Warranty. Some liens may not be include. Their title co.s are always overwhelmed or non responsive. I suggest paying for your own title co. The "starting" bid is not the reserve bid, it's undisclosed as others have mentioned. Read the title commitment very carefully for exceptions (HOA debts, etc)
If you're worried about liens attached to a property you could just get an O&E report done on the property to get an idea of what you're in for. Just always be sure to do your own Due diligence, and read over the supporting docs of the lien search, and ask questions if you don't understand something. Make sure you understand what exactly the scope of the search is, if they check for just liens & judgement or do they also check the tax status, federal tax lien search etc...
Thanks for the info.
On top of what was said earlier: If you win a bid, it doesn't necessarily mean you get the property. That bid is considered your offer and is presented to the seller to accept/deny. At least this was the case for me when the bid didn't meet the reserve price (which was way more than the property was worth).
For the same house, there was an auction before mine that didn't meet the reserve. The seller denied that final bid, mine was accepted and it was only like $1500 or $2000 more.
As a new Canadian investor in the US, can someone kindly advise me where to get all the info (mainly money owing and things I should know about a property that can get me in trouble) before bidding on an asset?
Is an o&E all I need? From here ok or do I need to find one in the county I'm buying? http://www.unifiedtitle.com/oande-comparable-sales
Small lots on sale at BidsForAssetts are really worth it..? i can see 4000 SqFeet lot around 1 hour from major metro.. this kind of investment has any long term value..?
Raji Ahmed have you ever bidder on out of state properties? Am currently in California but interested in an out of state property.
Also Raji Ahmed was the EMD refunded back to you?
Yes auction.com is a ripoff if you ask me. Auction.com Corp internally bid against you, falsely inflating the price. I questioned a Rep from Auction.com about this, and he said "Read your terms and conditions, its stated there that we can and will bid properties"
Then on top of the inflated price you pay, auction.com tacks on their % fee. I bought there one time and will not do it again. I ended up overpaying, was naive about the system and felt very ripped off the transaction.
Silly question but I'm new so it's allowed. :) Can you submit an offer to the property owner before the auction? Also does anyone know the reason financing the property is not allowed? I've seen nothing but cash only deals.
Some properties do have a Pre-Bid auction that gives you a few days in advance to bid and try to win the property before it goes to auction. I tried it a few times and from my experience they are only willing to discount maybe 5%...10% if you're lucky.
Originally posted by @Ike Igiebor :
Raji Ahmed have you ever bidder on out of state properties? Am currently in California but interested in an out of state property
Sorry haven't checking in for some time - i did not bid out of state, only in IL
@Raji Ahmed Can you please elaborate on the process after you are the winning bidder or your pre-bid is selected? Do I need to have a RE agent for closing? What do I have to prepare for on my part to make sure it closes smoothly and protect myself from hidden issues. What about obtaining title insurance and ultimately getting possession for the property?
Hey. You don't need an agent to close. But depending on the State, Illinois is an attorney state you prob want someone hire a lawyer. In my experience the houses have a clean title but I get title insurance. Once you win you pay the deposit and sign PA and wait foR closing. If there are any inspections required by the municipality or village that's your responsibility. Otherwise pretty smooth process. Good luck out there.
Guys and Gals,
I read all of the threads, but I didn't see anything as to whether or not any of you actually stepped inside the properties you were interested in. Personally, I would never buy a property sight unseen. But that's just me. You may want to try and find a reputable wholesaler in the area you're looking to purchase homes. For example, we send pictures of the homes, the asking price, the "correct" dollar amount needed to rehab the property, the ROI, sold comps and the cash on cash return percentage. We'll also rehab the property for the investor and flip it or manage it. This makes it much easier to make an educated decision. But beware on sold comps, the ARV and the rehab costs. Many wholesalers have no idea what the actual rehab costs are and they will inflate the ARV and will give you comps that are too far away or aren't "true" comps. We have our contractor actually go into the property and give us a rock solid rehab cost and provide a detailed scope of work. If you're wholesaler can't provide those things, be careful. By the way, I have an out of state investor that uses auction.com and I go out and look at the properties for him. It makes him feel much more comfortable! Best of luck to all of you.
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