More Interesting People At The Courthouse Today
Well, every Friday is my day to spend on REI and part of what I do is go the the local courthouse steps for the foreclosure auctions. Some days there are sales, and sometimes there aren't.
I don't go any more to see what's selling or how the process works, more just to find other buyers. I figure that buyers at these auctions have cash are a good place to build a list of potential buyers when I have a property to flip. So I go, introduce myself to anyone I have a chance to and try to exchange business cards.
Most of the time, it's just one or two other investors as well as a couple of newbies, and usually one of the experienced investors is willing to talk after the sale. Today was different.
Today, the only two investors there played everything close to the vest. When I told them I wasn't there to buy, just exchange business cards and told them that I was looking for people who might want to buy properties wholesale, one guy said, "We wouldn't be interested. There isn't enough money in that. We just do foreclosures."
But what I thought was interesting, was that just befor the auction, everyone was informed that the opening bid was about 10K higher than what had been announced. Suddenly, this guy who said there wasn't enough money in wholesaling, started making calls, presumably to find out if his money people wanted to go higher.
When the auctioneer was talking to me on the side, he said "decisions, decisions". My response was, "I thought when you came to these, you already had a check written for the max you thought you could spend on the property and still make a profit, and you stopped bidding there."
Ultimately only one buyer bid, and he bought it for one penny over the bid.
Not bad for a days work.
A lot of ramblings, but I thought it was interesting at any rate.
Robert
i want to thank you for the idea.
go to make contacts for future sales
thank you!!!!!
Dear Robert,
Back in 1954 and up to about 72. We had this wonderful organization here in Los Angeles which we called, "The Fourty Thieves. We attended the sales which were mostly in those days in the Lobby of Title Insurance and Trust Co. You cannot imagine what went on, but at the conclusion of the bid we all went down the street and started to bid up from that point. We all participated as to a share as of the time we dropped out.
Of course to bid those sales you had to be in the group. Or you got out shouted, or your toe was stamped on as you gathered to bid. It was fun.
When I first got there a mass of very strange characters were the principal bidders day after day. One looked like Lincoln, wore a black suit which was turning green I think with mold.
'
People tried to qualify with the same Cashiers Check they had been using for months. Bids were started and run up and then would be withdrawn. The poor caller for the Trustee had to be quick and alert. A lot went on. It was a book onto its self. I enjoyed it. But alas as all things must it stopped. One man reniged on a handshake agreement to pay another not to bid. That blew it.
I after a time could not bid myself too many people would do an automatic overbid if I bid. They knew I had an appraisal and the latest title date downs and an appraisal from my staff appraiser. So I used stodges, oops sorry, Office staff, girls and boys. What games.
What you are experiencing nowdays is in view of the great many sales at scattered locations you have an employee bidder he calls in for any date downs on title or current information. A single operator at sales who is properly prepared can run circles around the employee bidder.
Of course you can plant a sale. Buy a note at big discount and let the sale run secure in your position. I am sure you can see the variations on that.
Many sales today are to clean title. The title has been played to death and has about seven types of notes. Soo now your friendly mechanic must clear all of those items. He forecloses from a Senior position and wipes them from the record. Gives dear old IRS 120 days to respond to notice of completed sale. Of course they never do so there you are a clean title. Nodays in California we also notify Franchise (Copy Cat) Tax Board and treat them the same as IRS. If they dare to continue their lien we start a legal action to clear title and they for some reason only known in Sacramento slide away. Sometimes we will make them look good and token payment. But for serious bucks we will joust away with an action.
California is a fun place for real estate. I have always enjoyed it win lose or break even. Of the three choices I have done them all. I will try not to cry.
Cheers Lucius 8-) 8-)
Lucius,
You are always the story teller and we appreciate your style.
Quote:Of course you can plant a sale. Buy a note at big discount and let the sale run secure in your position. I am sure you can see the variations on that.
I hate to be dumb here, but I have to say, "I really don't understand what you said above". Can you please clarify for me what you mean?
Thanks Lucias. I think I'm going to have to drive down to LA to meet you some time.
Robert
[addsig]
So why would the opening bid amount change? Were mulitple notes consolidated?
Robert
Quote:
On 2004-07-03 00:17, j_owley wrote:
i want to thank you for the idea.
go to make contacts for future sales
thank you!!!!!
You're welcome. But I have to give credit to Robert Shemin for this idea