/biz/ - Business & Finance

You’re lucky I’m here. I do this full time. Why are you buying it? Keep this thread going and I’ll answer your questions.

>>18276439
Thank you for replying.
I want to buy my first house in cash
Have about 150k in the bank

As I understand, I would be responsible for any liens that the sale price doesn't cover, and I can purchase title insurance that covers any liens that a title company doesn't find before the title is transferred - is that correct?

Also, is there a way to tell how many bids there are on that house, and what the highest current bid is?

>>18276439
also, is there a way to find out what the reserve price is?

bump

>>18276439
Any chance of finding a place that doesn't need a ton of work?

There is a better way. You have no control over what comes up on the steps. Instead, do a targeted campaign in areas you want to live and send them mailers. Let them know you pay cash and you’re not an investor. Then shoot them a low ball offer. It’s much safer. You get to see the house before you buy it - and have it inspected - so you’re not buying sight unseen.

>>18276734
What if I’m pre approve for an fha loan? I plan on buying a duplex and I see some coming up under foreclosure and auction

>>18276734
Also I’m not an investor would be my first home just plan on renting it out to friends and family

>>18276761
>Also I’m not an investor would be my first home just plan on renting it out to friends and family

Better become a jack off all trades because stuff will break, son.

When you buy in the steps you are buying a big black box with a house in it. You don’t know anything else about it. I’d suggest if this is your first time to buy a house leave the gambling to the big boys.

>>18276746
Why not look for duplexes that are already on the market and make low offers on them?

>>18276662
Yes. There is a good chance. But there is also a chance that you’ll get a house that needs TONS of work. That level of risk is up to you. I have been a full time investor for 8 years and I don’t buy on the steps.

>>18276564
The reserve price is usually the amount owed on the loan. It takes some digging but the loan docs are usually blocked info available at the courthouse or on the steps. You’re looking for a “deed of trust note” or “note”. That has all of the terms. Original amount, interest rate, etc. you calculate from there. Is worry less about the reserve and more about whether or not you get a good deal. It’s possible to overpay on the steps. Just because you’re at an auction doesn’t mean you’re getting a deal. And that, I presume, is what you’re looking for.

*”blocked info” shouldn’t be in that sentence.

>>18276439
If a house has a lot of work to do, will you personally do it or hire contractors / property manager?

Are there any special financing vehicles / loan opportunities available given the home is at auction?

There are a lot of rental property software tools. Do you find these help improve margins or is it only worth it at very large scale?

How active of a role do REITs / Greystar etc play in auctions and does it give an opportunity for an investor to purchase, refurbish, rent and then sell to a larger property ownership group?

Lastly, of the home buying finch companies, what do you think is most notable/ Personally I think Ribbon is very interesting

>>18277145
*also, not “on the steps”. “On the internet”. Loan docs are available at the courthouse or on the internet. I need to read what I’m typing.

>>18277171
*home buying fintech

>>18277171
Sorry, more questions. Because this is at auction, are there any liens etc that are undisclosed that are only found out after a purchase?

>>18277171
>If a house has a lot of work to do, will you personally do it or hire contractors / property manager?


I try to do as much as I can. I hire out what I don’t know. YouTube is your friend.


>Are there any special financing vehicles / loan opportunities available given the home is at auction?

I don’t know. I don’t buy there. It’s too risky. I personally use money partners to do what I do. I’ve never actually used a bank. No joke.


>There are a lot of rental property software tools. Do you find these help improve margins or is it only worth it at very large scale?

I flip. I don’t like renting though I have a few small ones. I manage those myself. I have a friend who recommends rentek direct.


>How active of a role do REITs / Greystar etc play in auctions and does it give an opportunity for an investor to purchase, refurbish, rent and then sell to a larger property ownership group?

I’m in a smaller town where those guys aren’t playing.

>Lastly, of the home buying finch companies, what do you think is most notable/ Personally I think Ribbon is very interesting

I don’t know what this means.

>>18277216
That is possible, yes but the are usually mechanics liens. A contractor who did work and never got paid and filed on the owner. Those stay with the house and don’t travel with the prior owner.


Also let me say this - and this is REALLY FUCKING IMPORTANT.

In most states the previous owner has a time period where they can come and buy the house back from you at a profit (for you.). That sounds like not a big deal but let’s say you find out you need brain surgery and the time period is 2 years. You can’t sell your house to get the money to have the surgery until that time period is up.

>>18277228
>I don’t know what this means.

I was curious to see the effect of fintech / real estate tech companies like Knock, Open-door, Offerpad, Haus, etc and their participation in home auctions. Ribbon is more of a financing type. The idea is you pre-qualify for a loan, then use that loan to make an all cash offer on a home so that your offer is more attractive and then close on a mortgage after the home is sold. If you can't get a mortgage, then the home just turns into a rental property that the buyer lives in and pays down the Ribbon loan

>>18277228
>>18277259
Thanks for posting answers here, nice to see quality information here

>>18277271
Yeah that’s all fine but I think you will find everyone in real estate is tightening up until this Wuflu bullshit blows over.

I think I read that either open door or Zillow are stopping their home buying services for the time being.

>>18277280
No sweat. I did an ama on here back when ETH was $1400/coin. I think you might be able to search and find it.

>>18277302
Are there any good books / sites / youtube channels etc you would recommend to deep dive into this?

>>18277259
*this time period varies by state

>>18277315
what's the official name for this, so I can look it up in my state?

>>18277313
Bigger pockets is good for beginners but my god they get old after a while. (Podcast and forum). There are a multitude of books out there and I don’t recommend any particular one. I’d also recommend that if you buy on the steps go visit the auction a few times before you pull the trigger. Get a feel for the process.

Also - very important - the houses are posted publicly before the go to auction. Find out where your local municipality posts them. You can drive by them and see what kind of shape they are in on the outside.

If you’re smart, you might even try to buy it from the owner *before* it goes to auction. ;-)

>>18277315
can you find out what liens are on the house by calling a title agency before you buy?
also, can you inspect the house before you buy if it's vacant?

thanks for all the info bro

>>18277332
“Foreclosure auction”. They are usually held by counties.

>>18277360
>can you find out what liens are on the house by calling a title agency before you buy?

Yes but not for free. You should really be interested in a house if you’re going to do this.

>also, can you inspect the house before you buy if it's vacant?

No. That’s trespassing. You can break in if you have big balls but I don’t recommend it.

>>18277360
Ok I’m going to switch over to my computer so I can type faster. I want to tell you that you’re missing the point but I need to tell you why. New ID incoming.

>>18277379
>not for free
how much does that lookup usually cost? also, which liens follow the original owner, and which go to the new owner?

>>18277411
Credit card debt would be an example that follows the old owner. Mechanic lien would stay with the house.

Depends on the title company. At the bare min a couple hundred bucks. That adds up after a while - plus you could get outbid at the auction.

>>18277458
I see, that's pretty steep.
What does title insurance cover? Is it just anything that the title company doesn't find out about before you buy the house?

>>18277508
It insures the title of the property. Let's say that an heir from 40 years ago never signed the proper paperwork to transfer the property to a different owner and they come back and say they own the house. technically, they do. that's the law. the insurance company then comes in and pays them out. it RARELY happens but you better believe I never buy a house without ins.

BTW it's me again. I'm on my computer now. So now i'm about to tell you why you're missing the point. new post to come. It may be a while. I have a lot to type.

>>18277546
oh damn. same ID. I thought it would change. sweet. now to type


Ok so the reason you're thinking about buying on the steps is that I assume you want a deal. You're on /biz/ so I think that's a safe assumption.

But how do you know if it's a deal? How will you know what repairs it needs? How do you know that the previous owner didn't strip out all of the copper wiring before closing because fuck the bank. (I have seen that happen)

It's a HUGE risk buying on the steps. Let me introduce you to a few other way I would recommend if you're looking for a "deal."

Drive around areas you want to live and look for houses for sale. Call the realtor on the sign and make a low ball offer over the phone. Or, start a relationship with a realtor and make low ball offers through them. I say drive, but you can easily do this on your phone via Zillow. Download the ap and start looking around. I will sometimes make offers on houses I've never even been inside because I tell my realtor "Hey, offer xxx on the house at 123 main street. Tell them it's cash and that I want an 7 day option." That 7 day option is when i'll do my inspections - and see it for the first time. If I don't like it I walk. that's what the option period is for.

You can also market in areas you want to live. You can send out mailers to everyone in the neighborhood that says, "Hi I'd like to live in your neighborhood. I'm a cash buyer and I'm NOT an investor. Please call me if you'd like to sell your house without the hassle of a realtor." Some might call you. When they do you go look at the house, figure out what kind of work it needs, and then you low ball the fuck out of them. This doesn't' work in hot markets btw. I mean, it can, but not usually.

Or you can look for "we buy houses" signs and ask them if they "wholesale." If they do tell them you want to be on their list and that you're a cash buyer.

>>18277634
* before foreclosure. not "before closing"

>>18277634
Wholesalers market the fuck out of areas and then get houses under contract for low prices. They then sell the contract to cash buyers at a market up and they are done. you end up paying them a fee and closing on the house. Ideally they are brining you a house under market value, but you never know if it is or not.


That being said, you need to learn your market. what do houses sell for in your area? 2 bedrooms versus 3 bedrooms? Average $/sqft? And on and on and on. This is when it really helps to go through a realtor and make low ball offers. They will walk you through the process and make sure it gets handled correctly. That, or you can post on /biz/ and hope I'm looking at it!

>>18277634
damn, thanks for the info. let me digest this for a bit and i'll have some questions

>>18277729
Think of it this way, the more you make offers and the more you look at houses in your market, the more sure you will be that you found an actual deal (if you inevitably go against my advice and buy on the steps). You need to look at dozens of houses before you buy one. And you need to get it for a steal. Houses aren’t like coins. The market appreciates very slowly, so you make your profit when you buy the house. You need to win and the seller needs to lose. It’s a zero sum game. But even though they are losing they may need to sell it right now. And you need to be in the right place at the right time.

>>18277777
that fucking get m9

>>18277791
Hfs. I guess it was good advice then.

>>18277729
You’re looking at this saying “I want a deal and the deals are at foreclosure auctions.”

I’m telling you that deals are literally everywhere. You just have to find them.

>>18277634
in terms of owners who got foreclosed on destroying the house to fuck over the bank: doesn't this fuck them over too, since they won't get as much money from the sale? or do they only destroy it in secret ways that are not easily detectable? but then they're fucking over some random guy, not the bank... still, I can definitely see someone doing that just to be an ass

about getting a buyers agent: it seems buyers agents don't seem to ask for money or a contract up front, they only get a percent of the house price when they're actually closing. What's to stop me from getting a bunch of agents to work for me and find me shit, and then just use one of them to close and not give the others anything?

>>18277870
well the one I saw is a solid looking 3 bedroom house being auctioned for $18,000 (eighteen thousand) and it's a 10 minute walk from my work. I peaked inside and the interior is in decent shape, no walls missing or holes in the floor

>>18277971
>in terms of owners who got foreclosed on destroying the house to fuck over the bank: doesn't this fuck them over too, since they won't get as much money from the sale? or do they only destroy it in secret ways that are not easily detectable? but then they're fucking over some random guy, not the bank... still, I can definitely see someone doing that just to be an ass

No one knows they did it. And they only get money if it sells for more than the loan.

>about getting a buyers agent: it seems buyers agents don't seem to ask for money or a contract up front, they only get a percent of the house price when they're actually closing. What's to stop me from getting a bunch of agents to work for me and find me shit, and then just use one of them to close and not give the others anything?

Sure you can do that but it’s sort of a dick move. One agent can send you all of the listings.

>>18277993
If you’re looking at it then so are 20 other people. It’s going to get bod up. What’s a safe price? What’s paying too much? You won’t know until you do market research.

>>18278027
*bid


Also, if this is a deal then jump on it. But understand deals are like taxis. If you’re looking for them another will be around the corner in 20 minutes.

>>18278027
can you tell on hubzu how many people have placed a bid and what the highest bid is?

this is what the listing looks like now

Not sure. Place an 18k bid and see what happens. They may give you more info like how many bids etc. it seems pretty safe since there’s no reserve. The reserve is probably 40-60k.

>>18278069
What’s the tax value of the house?

>>18278261
it says tax for 2018 was $1075
idt i have the balls to place a bid just yet, I need to read up on possible scams and ways I can be fucked over for a couple days

>>18278350
Just do it.

That’s annual tax bill. I mean total tax value.

I’m off to bed. This will probably be archived by the time I wake up. If anyone else has any questions about real estate bump it until tomorrow.

>>18279785
Thanks for all your help man, really appreciate it