I have some cash I am looking to invest in property. Initially I was wanting to buy/rehab/rent/refi/repeat. As of late I am thinking of changing my strategy a bit to get some bigger returns on the front end and then begin the BRRRR process after I had made some deals and familiarize myself a bit with the process. That being said I have been starting to study the properties on auction.com quite a bit. It definitely seems like there are some diamonds in the rough that need some work and would be profitable for flipping in my area. So now of course a whole new world opens up to me. (Seems like every time I am ready to commit on my first REI some other method or something I hadn't considered before comes up and completely reshifts my focus). Well for starters I have tons of questions about auction properties however I will start with my basic questions. If there is something you are thinking that I haven' asked please fill me in.
-if the property is occupied is the eviction process different than that if a landlord/tennant agreement?
-are there any add one that will show up after closing? For example the property tax hasn' been paid in 4 years or the HOA fee is years behind?
-looks like there are different kinds of deeds for foreclosed/auctioned properties. Which ones are good or bad? If it is considered bad is there a way to have it changed after rehab?
-Is there a legal way to gain access to the property before bidding on it?
-has anyone used auction.com or a similar website and are willing to share your experience?
-and a million other questions.
Thanks all, I appreciate the mentorship and guidance I have received so far from this site. 2018 is my year, just gotta push myself to take the leap and make that first deal. I can feel it's so close.
1. If the property is occupied by the owner, the tenant you inherit will have no defenses. If occupied by a tenant paying FMV, local law will dictate how that lease is dealt with and whether an eviction is even possible.
2. Taxes and HOA are handled at closing... but that doesn't mean they will be pro-rated between buyer and seller as of the settlement date. You'll need to confirm how all outstanding amounts will be dealt with by reading the auction terms. Get a title search and consult with an attorney if necessary.
3. General warranty deed = best. Special warranty deed = next best. Quitclaim deed = worst. You're not going to get anything beyond a special warranty deed in the auction scenario. With REOs you should push for a special warranty deed. Most trustee deeds are without warranties of any kind.
4. The only way to get access to a foreclosure is with the permission of the occupant. For REOs check the terms.
5. Auction.com handles both REO sales and foreclosure auctions. Be absolutely sure of the type of auction sale you are participating in and be confident you understand every term applicable to your sale.
Feel free to contact me regarding Auction.com assets. As Tom Gimer stated we have both Foreclosure auctions & online REO auctions. They have completely different "rules" so to speak.
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