All Forum Posts by: Jonathan Towell

@Austin Maginnis

I haven't looked at auction.com in about a year. So 1) my info may be old and 2) my memory may be poor.

That said I can tell you how I understand their site works. When a home goes into pre-foreclosure, auction.com lists it on the website to show that it will be sold at the courthouse steps at a future date. Auction.com homes and all other homes in pre-foreclosure are listed at the county courthouse. At this point, investors start looking into the houses and doing their research.

On the day of the auction, the banks keep a reserve amount that is always going to be at least the amount owed to the bank. Banks are not selling houses at a loss in today's market.

Only a small portion of the houses go to auction with much equity (and thus a low note balance). It takes some bad circumstances to cause someone to lose significant equity to foreclosure, which is why it is more rare.

Of the homes that have low note balances, any investors physically at the auction will snag them up. These auctions have a room full of men and women that have already appraised every house being auctioned and know exactly what they are worth. They have cash in hand and are ready to buy at a discount. Today, the market is very hot. In Lubbock, where I am, homes are going at foreclosure auction for retail value (which is why I don't go to the auction anymore).

Because there aren't many houses with low note balances, and because of the large investor pool trying to buy those houses, practically none of them do NOT get sold at the foreclosure auction.

The only houses on auction.com that can be purchased on auction.com are homes that made it all the way through foreclosure auction without being sold. I don't think it is impossible for any deals to be had on auction.com. I just haven't seen them in my county.

There is a book called "The Pre-Foreclosure Property Investor's Kit" that you might enjoy reading. Basically, to get a property before it goes to foreclosure auction, you need to rescue it from foreclosure by buying it from the owner when it is in pre-foreclosure (or before). It is a lot of work, but it seems to be very profitable for those who can get good systems in place for it.

I hope that helps.

Welcome to BP. I wish you the best. Sounds like you've got a very attainable goal.

Welcome to BP! 

Hi Jimmy,

I'm here in Lubbock and own a few properties. Feel free to reach out and visit. I'll direct message you with my contact info.

You'd probably need to get a foundation expert to look at it. It looks pretty bad in the photos, but maybe it is done settling. A foundation guy or gal might take a soil sample, look at the roof structure, or do any number of other things to determine the extent of the problem.

Nothing wrong with $380/mo in cash flow. In my opinion and experience, flipping is riskier than buy & hold. I say keep up the good work!

You might try to make a list of the criteria you want in a commercial property, then ask the realtor if the property meets those criteria.

It feels good! Keep working hard and you'll get there. 

(I don't know the laws in Oregon. My info is based on Texas.)

Do you have a signed lease for this "tenant"? If so, that should make the eviction process easier. I'd just buy the house and evict him.

Offering him money to leave is smart too. Eviction costs money, both in court fees and carrying costs.

If he doesn't have a signed lease, you'd think he'd be a trespasser. But, my understanding is that someone who takes residence in a dwelling is no longer a trespasser but an occupant. An attorney may be needed to help remedy the situation.

House hacking is a great way to go. My wife and I did that with our first house. But, if I knew then what I know now, I would have house hacked a duplex or quadruplex. The bigger the better.

I think you're right to look for properties in areas that are going to produce higher rents for the value. Personally, I wouldn't buy a property with higher rent-to-value only to lose that extra money to a management company. I'd rather buy something in my own town so that I can manage it myself. But, that is just my personal approach.

I wish you the best.