All Forum Posts by: Jared B.

Does anyone in here know about overbidding at county auctions? My agent says that I don't need to go to the auction, and put up the 10% deposit on this property. I can just wait until the court date and put in an overbid (which works out great for me). This sounds like it shouldn't make sense, because why go to the auction and tie up your cash at all? Anyone familiar with this?

Please help.

This forum seemed more based on a question than any group gathering preface. So I started a BP Los Angeles group. Anyone in the greater LA area is welcome to join.

http://www.biggerpockets.com/groups/60

Many weeks ago I put into the suggestion box to have a localized forum thread. I'm stoked to see that we now have one here at Bigger Pockets. We should make the most of it...

I noticed people looking to find a "group" to meet with. We're here and this should be where we network. In my opinion, there isn't enough chatter in this L.A. thread. I'm sure it would grow to where people would decide to meet face to face at some point. In the meanwhile let's get to know each other. Maybe I can help one of you, or vise-versa. So here goes a few ideas for conversation starters...

We can all check each others profile for basic info, but maybe some of you would like to tell us yocals more. Remember this is about building relationships, getting to know each other in the area and starting our own group. One that meets on our own time, at our own homes.

Would anyone want to talk about what they're doing in the area? Has it been successful, any interesting stories to tell?

Would anyone want to talk about their investing team maybe? Do you have any advice for the rest of us, a lesson learned maybe.

Maybe you'd just want to share something interesting or funny, I don't know.

Maybe someone has a question that a local like myself could answer, I know my way around a lot of Los Angeles, I've lived here all my life.

In the spirit of what I hope catches on in this thread, here's a little about myself...

I design and I build professionally. I know the building code pretty well, I also am fairly familiar with city bureaucracies and how to deal with them. I have been watching the residential market (South Bay mostly) for the last 6 years or so (my "limiting factor" has been the lack of capitol). I've penciled out many residential projects in hopes of putting something together, but nothing has materialized as of yet. I just don't have the cash, but I'm working on that. Next year maybe.

Just trying to start conversation in the hopes that someone else will pick-up on it and understand what I'm trying to do.

Do with it what you wish.

The homeowner gets whatever the property garners at an auction above the debt and processing costs of the lender, correct?

I understand the pro's use a general 70% rule of thumb for bidding. So it should be relatively safe to say that a property will sell for approximately 70% of it's after-repaired market value, or more - right (unless the lender buys it back, of course)? Mind you I'm in the Los Angeles market so it would be different than some other areas.

When hunting the NOT listings for upcoming sales hoping to find a door I can knock on, I would like to narrow down the number of doors that are to be knocked. I know that some would be a waste of time for me and the homeowner. To narrow this down here's my approach...

If I want to beat out the pro's at auction, but still make it worth my while, I would look to offer 80% (generally, a couple of weeks before the sale was scheduled). I would base my criteria for which properties I can make offers on by dividing my max purchase price ($400k) by 80% (= $500k). I'm thinking I should avoid properties that are outside this 80% guideline. I see this as a win for everyone involved at this point in the process. Am I missing something?

Is what I'm doing a reasonable way of going about this? Have I missed anything major in my calculations or plan? Currently this will be my first and primary residence, but I'm looking for a place I can develop - which is my long term goal. Start with this one to get some capital going. Anyhow, any input would be appreciated.

Thanks,
JB

I'm pretty sure there is a law that prohibits taking advantage of homeowners by disallowing "flipping" of properties that are in preforeclosure. Can someone please tell me where to find that code and what it is refered to so I can find that actual law on the books? Even a hint or a lead would be helpful.

Thank you,
JB

The homeowner gets whatever the property garners at the auction above the debt and processing costs of the lender, correct?

And I understand the pro's use a general 70% rule of thumb for bidding. So it should be relatively safe to say that a property will sell for approximately 70% of it's after-repaired market value, or more - right (unless the lender buys it back, of course)? Mind you I'm in the Los Angeles market so it would be different than some other areas.

When hunting the NOT listings for upcoming sales hoping to find a door I can knock on, I would like to narrow down the number of doors that are to be knocked. I know that some would be a waste of time for me and the homeowner. To narrow this down here's my approach...

If I want to beat out the pro's at auction I would look to offer 80% (generaly, a couple of weeks before the sale was scheduled). I would base my criteria for which properties I can make offers on by dividing my max purchase price ($375k) by 80% (= $468k). I'm thinking I should avoid properties that are outside this 80% guideline. I see this as a win for everyone at this point in the process. Am I missing something?

Is what I'm doing a reasonable way of going about this? Have I missed anything major in my calculations or plan? Currently this will be my first and primary residence, but I'm looking for a place I can develop - which is my long term goal. Start with this one to get some capital going. Anyhow, any input would be appreciated.

Thanks,
JB

Yeah looks like I may have.

Many, but not all. I'm going tomorrow to see one that has about $360k equity in it. Just to see how it plays out. I'll let you know how it goes.

A "Contractor" is also refered to as a "builder" in my book.

This may have been mentioned, but I would love to be in contact with more in my area. Just a thought. Maybe find a mentor or partner.