All Forum Posts by: Steve R.

Thanks for the replies.
60-65% is good to know.
Their prices are very inflated but I'll make my offer and carry on.

I'm looking a property on auction.com/REDC and it is an online bidding auction only.
I have done my due diligence, know what I want to pay, know its an "as is" sale but does come with clean title.
My question: Is there anything I should be aware about the way they conduct their business/contracts that might be shady or put the buyer in an unfair position?

I know the prices tend to be high but I'll make my offer and call it a day, I just don't want to get caught because I missed something in the fine print.
If I "win", I would have my atty look at it anyway.

Thanks for looking.

Thanks everyone for your input!
Yes, I'm learning persistence and research
play a big roll in this game.
Angelo, I will send you an email.

Hello

I live in NJ and recently started going to sheriff sales and getting educated on the process.
I spoke to an attorney that was representing one of the banks.
He was very helpful and I was asking him about doing title work prior to auction.
He said, prior to the auction, I should call up the foreclosing attorney and ask for the "the complaint".
This legal document will list the 1st mortgage holder and will also state whos interest is getting wiped out.
Sounds like great way to get accurate information.

I have not heard of this or seen anyone talking about this.

Does anyone have any experience getting
"the complaint" from the foreclosing attorney?

Thanks for your input.

I think Jerry Ricci hit on the head.
You don't know the financial condition of the board and it can be difficult to get that information.
I do know lawyers that had access to that info and bought the units so cheap that they made a fortune.
Personally i would talk to someone on the board, tell they your situation with a smile, why it would benefit them to have you as an owner and ask for the financials.
You would be surprised how often people say yes if it's presented properly.

Good luck.

Thanks the replies.

Drew, can you tell me the formula of how you get to 1.5?
(so I can calculate it here)
Since most of the properties here need between 5-30k in renovations, and I'm a buy and hold guy, that would be a consideration.
I understand if you don't have the time.

Thanks

Great website!
What a great source of information.

I am a buy and hold investor.... for the most part.
Briefly I have purchased 3-4 family buildings in the NY tri-state area. I have experience buying and managing these.
In my area, prices are still high and not even close to having positive cash flow. I will not buy w/o positive cash flow.
The sheriff sales may offer opportunities.
I would pay all cash and take money out after the fact.
I realize you HAVE to do your homework, title searches etc (and that is another post)

My question is how do you determine how much to bid for a property? How much positive cash flow is "enough"?
(assuming I had a mortgage w/20% down)
I'm looking for a simple basic guideline.

One formula someone told me:

If you can break even with 20% down, and a 10 yr mortgage after all expenses.
Basically the house would be paid off in 10 yrs.

I do feel I "need" to buy so unless it's a very good deal, I can sit and be patient and if I miss it, thats fine.

Any guidelines or input would be greatly appreciated!