All Forum Posts by: David Sweatman

Hello All.  I've purchased several foreclosures in NC through courthouse auctions, and I'm a RE Broker in NC.  However, due to family reasons, I'm looking in Southern Illinois and Missouri for my next foreclosure flip.  I know the law in NC very well, and can do my own title research here, but Illinois is different animal.  

I'll start with a few questions, but welcome any advice the community can give about Illinois or Missouri foreclosure auction sales.

1.   When you win the auction, pay your deposit, and then the remainder the next day, how long does it typically take to gain possession of the property?
2.   Are there any title pitfalls?  In NC, all liens (except IRS, environmental liens, etc) are wiped out.  So in NC you don't have to worry about second mortgages or other debts of the borrower.  In Illinois or Missouri, are secondary mortgages and other liens wiped out at auction?
3.   What are some things to be aware of when buying a property at foreclosure auction in Illinois or Missouri? 
4.  It seems that a lot of properties revert to the bank, and not to cash buyers. Is there a reason for that?  

Thank you in advance!

Greetings BP Community!

I'm a real estate broker living in Raleigh, NC, and I'm looking for my next real estate investment.  

I have some experience flipping, 3 flips with cash over the last 3 years, netting 20%-25% (before tax) on each.  All three have been out of town foreclosures, but within NC.  Reason being, the market in the Raleigh area is so hot, and there's so much competition with flips and foreclosures.  Most foreclosures here seem to get bid up to and over the market value, without room for repairs, making it impossible to outbid, repair, and flip.  I'm told that most of the local flippers are using a buy and hold strategy now.

Anyway, my situation right now is I have $100,000 to invest, I have good credit, and I'm a real estate broker.  What investment would you make in my situation?