I have my list narrowed down to 23 properties ...gonna cut it down some more by next friday. Has anyone here participated in the online auction for Baltimore City?
I am still a little confused ...
1) After I submit my bids & budget do I still actively bid per hour online?
2) If I win a bid..do I need to pay the lien amount only OR the total bid amount at that time?
3) Hard Money Loans - i just got an LLC for this venture and have my eyes on a few items , would you advise a hard money loan if I am able to foreclose on a property due to other violations/ repairs request ?
I am nervous & excited..I just want to get start out correctly...PLEASE SHARE UR EXPERIENCE>>
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Well, @Ned Carey would probably have some great insite as he specializes in these types of deals in Baltimore.
Thanks Gentleman...2nd question ...can I get into Tax deeds in FL even though my LLC is in MD?
Hey @KENDA BELL
Im not an expert or lawyer but I have spent some time looking at the Baltimore Tax Sale
1) No clue
2) You pay the lien amount (the stated amount, including fees and previous interest) as well as any High Bid premium you come up with.
3) We have a plan in place to secure Private Money (I have several wealthy friends, not HML) to finance any foreclosure.
4) Not 100% but I'm pretty sure there are no issues.
If you're serious about pursuing this strategy I recommend spending the money to get professional advice and treat the money as the cost of doing business.
You can start entering bids this Friday. You can enter or change bids until the particular batch your property is in is over. Batches 1 through 8 close one hour apart starting at 9:00 am Monday.
Presuming you enter your bids over the weekend you don't have to do anything on Monday but you can change you bids in the later batches based on the results in the early batches if you want.
I wouldn't limit your list. If you have found 23 properties you like I would bid on them all. The more you bid on the more your chances of winning some. The purpose of the budget is to limit your winnings to the amount of money you have to spend.
If you have $5,000 to spend for example, you could bid on every property in the auction and they would award you wining bids up to the point you spent your $5,000.
The day of the sale you pay the lien about and the "High Bid Premium" It is a complicated formula but it is calculated when you enter your bid. The remaining part of your bid that you don't pay the day of the sale, is not due until you record your deed.
Presuming you buy properties cheaply enough, getting the money at foreclosure time shouldn't be a problem. Even if you can't get someone to loan money to keep it you can always sell it. (again presuming you bid right)
Keep in mind at foreclosure time you will need the money for the legal fees and to catch up 1-2 years in taxes and water bills.
Houses in nice areas can go for up to 70% of assessed value. In lower end neighborhoods sometimes properties are bought just for the lien amount.
Thanks Ned!!! A little nervous
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