Flipping Courthouse Foreclosures in 24 hours
hi guys,
Lately I've been attending foreclosure auctions at the courthouse just checking things out, and networking. Well in speaking with one of the attorney's auctioneer she mentioned all the buyers have 24 hours to fund their winning bid by either cashier check or wire transfer. My question is, can I do a double escrow on those deals. I see this is happening in my market by a particular investor, and he seems to be the only one applying it in our market, so I'm not to sure if he's willing to share his secret just yet.
So the question is again, is their a way to double close on a courthouse foreclosure within 24hrs, if I have a end buyer willing to purchase it.
Most Popular Reply
I agree mostly with the IL poster, although all the counties ner Chicago require full payment in 24 hours.
With regard to the OP, if his goal is to accomplish this without having his own cash, I think it is pretty impossible. If you have the cash to close, there may be ways to close and flip pretty quickly, but not in the typical A-B-C double close transaction.
As has been mentioned auction properties do not have typical closings handlied by a title agent. It is the title agent that is key in transactional deals.
However, I have seen people who offer a sort of bidding service. They attend auctions and buy on behalf of people for a fee. Not really flipping but it is a possibility.
I just don't understand how you could pull off what the OP is describing on an ongoing basis. Maybe once if the exact right situation dropped in your lap. To do this ongoing, you would need a group of ready buyers who are willing to pay cash on short notice for a property that they have not inspected. And if they were willing to do that, they would go and buy at the auction themselves.
It just doesn't seem feasible and maybe Memphis is different but in most populated counties, properties are selling at auction at very high values. I don't see a lot of room for flipping before improving.