All Forum Posts by: Robert G.

Quick look at the numbers gave me a max purchase price of about $78,000.

Good luck.

I'm a novice, so this may be naive, but I agree with Wayne.

By definition, the price an investor will pay (particularly when a wholesaler is getting a fee) is lower than what the house could fetch on the open market.

So, if your intent is really to do good by your friend's family, then you would just advise them to lower the asking price to a more realistic number. You mention 339k with no bites. They can adjust the asking price to 325k. Or 315k. Or however low it takes to get action. The point remains, in order for an investor to be interested, the price is going to have to be lower than that (to accommodate the investor's spread and your fee).

In this type of situation, your profit and their maximizing the $$ from that house are inversely related.

Thanks Steve. I'll dig in now.

Quick question, as I've been reviewing the auction system for South Florida as well.

I've been looking at some past auctions, just to get a feel for things, and I keep seeing auctions that end with Sold To: 3rd Party Bidders. I take this to mean neither the homeowner or the plaintiff in the foreclosure action bought the property. Fine. But then I look and I keep seeing foreclosure actions by condo associations basically showing 15k to 30k in past due fees and/or assessments. There is no mention of the lender or mortgage holder in the documents. So I keep seeing auctions where the final bid is like 25k (presumably slightly more than the debt, hence higher than the Plaintiff's Max Bid).

Why are people buying these? Am I wrong in assuming these are junior debt positions (i.e., liens by the association) and that the winner bidder is still behind the bank/lender? I must be missing something because I've seen this happen several times and I dont believe that many people are throwing money away.

Thanks in advance.