WatchLooking at new listings on Redfin today and saw the duplex below. According to the sales history it was sold at a foreclosure auction for $105K. A few renovations and 6 months later and the asking price is $280K.
Was this house actually sold for $105K? Where is a (legitimate) source I can find out when and where these foreclosure auctions happen? Even the before pic (from Google street view) shows the house didn't look that bad.
I would have gladly written a check for this house at this amount. I know a little about how it works (have to have cashiers check, do your own title research, can't look at the inside of the house - anything else?) but I'm sure I'm missing some of the finer points (such as bidding collusion, associating with/being intimidated by scumbag flippers, etc.) Do they release a list of houses they are going to auction beforehand?
Any advice and comments welcome. And, hey, I'm just looking to owner occupy. No flipping aspirations here.
Before picture:
After pic (with renovations):
Pricing history:
Love the typo in the description:
Follow
Befriend (1)
104 threads
2,851 comments
Malkovich says
Go to a foreclosure auction.
Remember, you have to be willing to put up cash and purchase the property warts and all. Next, you have to oversee the remodeling. Looks like they put on new stucco, new windows, redid the interior, put up new fencing, new appliances, flooring, paint, mouldings, tile, so on and so on. There were almost certainly mechanical and plumbing upgrades as well.
From beginning to end there is a serious investment of time, money, and know-how. Almost seven months have elapses between purchase and listing, and the entire time invested will likely exceed one year when all is said and done.
This isn't something you can just dabble in and expect to be successful.
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
ptiemann says
Thanks! So, I assume the title report would help prevent a tragic situation as described in this article:
http://www.santacruzsentinel.com/localnews/ci_15573894
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
Nomograph says
I am a pretty low-fi guy. I probably would have just slapped on some paint and moved in. I couldn't care less about granite or stainless steel. If there were some renovations needed I have plenty of friends who are experts in this area.
Not looking to dabble in anything. I already have a successful business. Just looking for my first house and would rather pay "wholesale" than "retail." That's it.
I understand your point though. Thanks.
Follow
Befriend
1 comments
I am with you brother...I just want a place for my family---apartment living is great if you are single or just married throw in kids and a dog----fuggedaboutit.....
I am seriously considering taking real estate classes at night in order to become a California licensed realtard so I can get access to these shady deals.....If I can purchase something like this before it hits the market and save $175K in the process--- the risk might be worth it.
Why buy retail if you can get it wholesale?
Follow
Befriend (1)
104 threads
2,851 comments
DapperDan says
These are public auctions. There is nothing "shady" and you don't need any licensure.
Follow
Befriend (28)
170 threads
4,188 comments
Premium
They're listed in the newspaper. For fifty cents, you're in on the conspiracy.
If you want a better look at the building without entering, go to the city hall or town hall where it is located and go to the assessors' office (or tax office or inspectional services office; varies by locality) and ask to pull the building jacket to look over construction permits, notices of occupancy permits being denied or revoked, etc.)
There will the names of people like contractors associated with the property you can call and get a heads up on it. You may find nothing. You may find the property was abandoned halfway through renovation by a half-wit flipper who didn't pay the contractors who quit the project after removing all of the interior walls, etc.
While you are there, you can find old crabby building inspectors who may have their own take on a particular properties' history.
If you're in a foreclosure rich locale and you want to get in the game, you really want to be able to whittle down the list of disasters and aim at candidates with at least a history of regular or predictable maintenance that has been properly permitted, inspected and completed.
Also note that complete absence of documentation in a building jacket is not a positive sign, either. One could end up buying a property that is completely mickey moused with plumbing, roofing and carpentry completed by meth-addicted brothers-in-law and half-competent do-it-yourselfer.
And remember, there is no law in the world against tying a camera on delayed exposure setting to a stick and shoving it in through an accidently broken window .
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
GameOver says
GameOver - thanks for the video. I also noted the below text in the terms and condition for auction.com. Sheesh - seems the entire process is heavily tilted against the little guy.
Follow
Befriend
35 threads
5,700 comments
Bellingham, WA
DapperDan says
You can take the necessary classes online. The required classes to be a broker is generally pretty useful stuff anyway.
http://www.dre.ca.gov/exm_broker.html
if you already know it the class is easy and if you didn't know it, you're better off learning it
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
GameOver, how do you think a lot of these flippers get their properties? Insider information? Corruption? Collusion? What did you find out?
I can't believe a decent looking duplex, with a garage, a deck, in a halfway decent area, like the one I posted in the beginning of this article only sold for $105K.
One would assume that competing bids would drive the price up. I suppose there is always the possibility the inside was completely tore up. I wonder what the story was here.
Follow
Befriend (11)
104 threads
455 comments
Premium
Do you know who purchased the property for 105k?
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
EastCoastBubbleBoy says
Qais Maqdoor, know him?
Follow
Befriend
3 threads
104 comments
San Jose, CA
GameOver says
I can see the demand for housing very low with that crowded room they've got.
Follow
Befriend (11)
104 threads
455 comments
Premium
Malkovich says
Nope, but a quick google search indicates that he's a realtor in your area - which makes Gameover's "flopping" comment seem far more apropos.
I've been to a handful of auctions just to get a feel for how it all works. It's an experience, I'll say that much. Nomograph and APOCALYPSEFUCK give a pretty good overview on the process though.
One other thought - pay for info sites such as RealtyTrac.com
do some (but not all) of the legwork for you - for a price.
Follow
Befriend (11)
104 threads
455 comments
Premium
Malkovich says
Nope, but a quick google search indicates that he's a realtor in your area - which makes Gameover's "flopping" comment seem far more apropos.
I've been to a handful of auctions just to get a feel for how it all works. It's an experience, I'll say that much. Nomograph and APOCALYPSEFUCK give a pretty good overview on the process though.
One other thought - pay for info sites such as RealtyTrac.com
do some (but not all) of the legwork for you - for a price.
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
EastCoastBubbleBoy says
Yes, I imagine is it like the Cantina in Star Wars.
I went to the Auto Return car auctions with an acquaintance a few times. (For those who don't know, Auto Return is the company who tows illegally parked cars in SF. They auction off the cars that are not picked up.)
It was the dregs of society. Had to take a shower when I got home.
My acquaintance had brought some fresh-baked cookies for the auctioneers. When I gave him a puzzled look he told me how auctioneers will blatantly ignore people's bids if they chose to do so. (He was trying to get in good with them, hence the cookies).
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
GameOver and BubbleBoy (and anyone else):
If I want to investigate these auctions further is there any site or method that is the best overall in researching foreclosure auctions?
Is there something like a Redfin type of site that has filtering abilities and is all-inclusive of all foreclosures coming up for auction?
I've checked out a few of these foreclosure sites and they leave a lot to be desired (eg. can't filter for multi, etc).
Or is the newspaper classifieds the way to go?
Follow
Befriend (11)
104 threads
455 comments
Premium
My experience is that newspaper ads are tedious, unless you are reading all your local papers every day. If your local papers have classified and legal notice info on there websites, that makes it a bit easier.
Keep in mind that properties at county auction (at least in my area) are subject to all prior liens and encumbrances, so back taxes, second mortgages, etc. You'd be on the hook for if you were to "win" the property at auction.
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
EastCoastBubbleBoy says
Not sure if I understand. According to the Caspio database on SFgate, the house was sold at a foreclosure auction (see screenshot below). Are you suggesting that it actually *wasn't* sold at a foreclosure auction?
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
Malkovich says
U want advice from the pros, but calling them names is not a good way to start a conversation.
Btw, game over has no clue what he's talking about. Best advice has come from ptiemann who is a friend, and nomograph
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
Nomograph says
U might want to re-read this.
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
Malkovich says
This is a different type of auction. Again, game over has no clue what you're asking.
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
GameOver says
By this logic, u might as well not try it or u might end up like the couple in Santa Cruz. Interesting that I didn't hear the media mentioned that the couple had to pay for $30k in back property taxes, $100k in IRS tax lien, $10k in State tax lien, $5k in utility lien, and etc. before they found out they bought a 2nd.
It's not always what it seems does it? U only saw a $105k on Redfin & u thought the guy paid a TOTAL of $105k for it. Like Nomo said, it comes with all the warts and what not.
Cheers. :)
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
EastCoastBubbleBoy says
ECBB, u can make money by buying the 2nd if u know how to do it right. Only the really savvy guys buy these. Also, the more encumbrances and liens on the property, the better buy u get.
This past week, a guy bought a $600k second on a property at the courthouse steps. There was also a 1st for $980k. The property has an estimated value of $4.2M. Too bad, I don't have that kind of money. :(
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
DapperDan says
Exactly. Make sure u don't end up like the couple in Santa Cruz.
Cheers :)
Follow
Befriend
19 threads
1,534 comments
Los Angeles, CA
foreclosureradar.com
its what the pros use
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
PockyClipsNow says
I signed up with Foreclosureradar.com.
Does this site list ALL the foreclosures? It seems there are very few. See screenshot below. This is multis, $0-$200K.
Follow
Befriend (4)
20 threads
108 comments
San Francisco, CA
Malkovich's website
ptiemann says
Excellent points. Thank you.