Investor · Nashville & Chattanooga, TN · Member since 2015 · 182 posts · 138 votes
A few quick questions on buying foreclosures at courthouse steps (trustee sale):
1) When you bring cashiers checks with you to bid, who do you make the cashier checks out to? Suggestion on check increments for properties in the 100k to 150k ARV range?
2) After successfully bidding on and winning a property, what do you do next in order to get the deed in your name? Do you just take the paper from the trustee and take it to your title company to do an official closing?
I've read all of the posts from Steve's list, but haven't found anything explaining these details.
Lender · Los Angeles, CA · Member since 2015 · 399 posts · 174 votes
11y
If you get checks in powers of two you will hit the final bid within 1k no matter what it is. This minimizes the amount you have to over pay. This is somewhat important because they don't give you your change back right away. Example, if you get checks in the following denominations you can cover any bid up to 127k:
1k, 2k, 4k, 8k, 16k, 32k, 64k
Try it, pick any number between 1k and 127k and with this denomination you hit it within 1k.
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
11y
1. You make the cashier's checks payable to yourself. If you win the bid you endorse them over to the trustee. Bring checks for $100K and one set of small checks -- one $50K, one $25K, two $10K and one $5K and you can pay any price and tender within $5K.
2. The procedure varies from state to state but typically the trustee will mail you a deed and you record it.
If only all transactions were this simple! Unfortunately, this is the simplest part of trustee sale investing. Nothing else about this business is easy...you might want to focus on the questions you haven't asked because the risks of this business aren't centered around the denominations of cashiers checks and recording the deed. Real danger lurks in the shadows...be careful and don't approach it too casually.
Lender · Los Angeles, CA · Member since 2015 · 399 posts · 174 votes
11y
If you get checks in powers of two you will hit the final bid within 1k no matter what it is. This minimizes the amount you have to over pay. This is somewhat important because they don't give you your change back right away. Example, if you get checks in the following denominations you can cover any bid up to 127k:
1k, 2k, 4k, 8k, 16k, 32k, 64k
Try it, pick any number between 1k and 127k and with this denomination you hit it within 1k.