All Forum Posts by: Derek W.

I've had this happen before. Without a single word of conflict,threat, or otherwise, I picked up the poop in a shovel and left it in a pile on his door step. I did it each time I found the poop. Magically the pooping stopped after 3 days.

Wow. Shameless self promotion for Mark!

I'm a little confused by the question wording. You are looking for people to wholesale your properties to? So you're finding it easier to find people willing to sell houses, but need buyers to flip them to?

I have answered bandit signs and ads in the past and become a buyer for local wholesalers. One guys tactic to build a buyers list was he put bandits signs all over that said "3 bed house needs work. Cash buyer only". When i called he said it was already sold. I don't think he ever really had the house, but got me on his buyers list. I'm guessing I wasn't the only cash buyer who answered his sign.

So if he were to purchase the note for, say, $55,000, can he set an opening bid of $275,000 at the auction, or is the max bid that can be set the value of the loan ($55,000) plus late fees and legal fees?

If you show up at the auction and bid, you would have to pay the overage to the second beyond your $55,000. And wouldnt the second would most likely bid to protest their interest.

I've only discounted my notes from face value at the trustee sale auction, so I haven't run into this scenario.

For learning purposes, let me simplify the OP to make sure I understand.

House worth $200,000

Two (or Three) loans against the house

1st for $55,000

Second for $200,000ish

If someone were able to purchase the first and become the note holder, they could foreclose if payments aren't made. The note holder can set the opening bid.

Question 1. Can the opening bid be set for more than the face value of the loan?

Foreclosure sales are different from state to state. We will need an expert from the state the property is located (I assume Washington?) to get a specific answer. But in California, the note holder sets the opening bid. What you mentioned would be a valid way of getting a discounted property by having junior liens wiped out at foreclosure sale.

A short sale is still an owner selling their home. It is the owner that sets the initial price. Sure, they are often advised by their agent, and later the price is confirmed or countered by the bank, but as in all standard real estate listings, it is the home owner who gets to price their house. An agent doesn't price a house. They advise their client based on market knowledge and local expertise.

Honestly, I don't like much of it at all. It sounds like junk mail and is destined for the trash. You sound like you're trying to sell them something. Others might chime in and disagree, but in my experience email addresses, 24 hour recordings, choice C, free special report, all turn off a seller. I've never bought a house from an email. You need to talk to people to buy houses. I would keep it way simpler. Why not just say:

Hi,

I see you were trying to sell your house. I'm interested in buying it and think I have some ideas. Please call me so I can write you an offer.

Your name and phone number

WOW! We've got Mr. Sean O'Toole himself on biggerpockets! How awesome for the biggerpockets community. Welcome Sean!

I have put tenants up many times. For less than $100 bucks per night, if the repair makes the residence uninhabitable, it beats a law suit, or losing a tenant. In some of my neighborhoods, a few hits of crack can replace a hotel room. ( joking!)