Buying foreclosures at the courthouse in Georgia

9 Replies

Happy new year! With deals harder to find in this inflated market I'm interested in the courthouse buying process. When I lived in Florida 6 years ago I did a couple deals and had some luck, but GA is much different. Would love to shadow someone and learn in the metro Atlanta area. Be happy to get coffee, buy lunch, etc.

JP

Sorry to be the bearer of bad news, but you are about two years too late to find any deals on the courthouse steps in metro Atlanta. You will be shocked at the prices people (hedge funds and the big residential real estate funds) are paying sight unseen on the steps. Keep in mind that you also have to pay all cash at the time of bidding. 

@James Paisley

Hi James,

Yes, as fore-stated...there are deals still around, but fewer and farther between than they once were, til true. You "can" find them, but you will need a team. My Investment team goes (as a group-to divide and conquer), and we've actually been able to snatch up a few deals recently. You may contact me for our next trip...and tag along, if you'd like. Much success.

if you have a house you need to get rid of, then yes, let it foreclose! The guy the other day bid 300,000 for a house in west Cobb. I had a list of what I would pay for each house using the 70% rule. My # was 110,000. I need to start selling to hedge funds. 

Its funny that you mention that @Mike Watkins because I have often joked about marketing my own personal residence as "distressed" when it comes time to sell because there are so many idiot investors in GA that would probably pay over market value.

I have tracked several foreclosures recently in my target market and pulled up the records to find that they sold at more than 95% of market value!  Its just baffling....

Luckily I do not deal with stupid money in the commercial space as much but occasionally you run into it.

These days you can't mess around period. Deals move fast. In my world that is 3,5,10 million dollar properties.

It amazes me how many people are worth 3,5,10,20 million these days. Amazing amounts of capital out there chasing deals. I have my full time office person doing the mailers and calling all day on the phone to owners.

Local guys complain last year they could find a 9 cap. 1031 buyers from other states that sold at a 4 cap are amazed to get an 8 cap on a commercial property. It's all perspective. I went to the courthouse steps before but that has been a waste.

You have to find a seller off market that does not have the pulse of the market. They know things are improving but do not know how hot markets are so price at a good price level to sell.

On the flips side I have a client with a large commercial project and the cap rates in the area keep compressing  which is great for us. Depends on which side of the coin you are sitting on.

Timing of the market is key. 3 to 4 years ago markets were frozen. People not educated on cycles were too afraid to make a move. Educated investors were gobbling stuff up knowing a recovery was starting. Now the real estate market many are buying based on the fear of loss in a hot market.

There are still great deals out there but you have to stick to your numbers and underwriting. I would rather look at 50 deals all year to buy 4 at the right price then just to be buying feeling like I am pushing volume. When you do that the bad deals cancel out the good ones for the portfolio and you are spinning your wheels. 

Originally posted by @Stan Butler :

Its funny that you mention that @Mike Watkins because I have often joked about marketing my own personal residence as "distressed" when it comes time to sell because there are so many idiot investors in GA that would probably pay over market value.

I have tracked several foreclosures recently in my target market and pulled up the records to find that they sold at more than 95% of market value!  Its just baffling....

 And they could see the inside and won't have to bid. That'll jump on it.