Tag Archives: homes

Using AZ Bidder to Buy Homes at Trustee’s Sales: Videos 5-7

“The one thing I learned in jail is that money is not the prime asset in our lives.  Time is.”

–       Gordon Gekko, Wall Street:  Money Never Sleeps, 2010

A sequel is rarely as good as the original film.  Wall Street:  Money Never Sleeps probably won’t have the shelf life the original movie had.  Shia LaBeouf?  Please.  He’s no Charlie Sheen.

I hope you will find my sequel, Using AZ Bidder to Buy Homes at Trustee’s Sales:  Videos 5-7 as good as the original post, Using AZ Bidder to Buy Homes at Trustee’s Sales:  Videos 1-4 .  I guess my collection of videos are less like a sequel and more like a full season of Sopranos episodes – by themselves they don’t make much sense but when viewed together the message is clear.

One disclaimer before you watch this next set – I’m not paid by AZ Bidder to endorse their company.  I put these videos together on my own as a service to my readers.  Buying homes at trustee’s sales (courthouse steps) is very risky.  But armed with the right information you can minimize this risk, save time and capitalize on some incredible opportunities in the market.

*For the best resolution I recommend you view these videos in full screen mode with the 720p HD option selected at the bottom right corner of the video box.

Video 5 – Placing a Bid

Video 6 – Watching the Bid Cast

Video 7 – Final Results

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Using AZ Bidder to Buy Homes at Trustee’s Sales: Videos 1-4

“The most valuable commodity I know of is information.”

–       Gordon Gekko in Wall Street, 1987

I was 15 years old when the film Wall Street was released.  I had no interest in business back then.  I was too busy popping pimples and chasing girls – on my bike.  By the time I got around to caring about business, about 15 years later, the movie was off my radar.  That is, until Wall Street:  Money Never Sleeps came out in 2010.  I finally watched Wall Street and I wasn’t disappointed.

Last December, I was introduced to AZ Bidder by Tom Ruff of the Information Market.  This powerful web-based program allows me to bid on homes sold at trustee’s sales (auction) here in Maricopa County, Arizona, online.  With this service I can search for homes in foreclosure by city, zip code or file number.  It allows me to build in my own assumptions for holding costs and repairs.  I can order and view title and drive reports.  The market analysis information comes directly from the Arizona Regional Multiple Listing Service.  Once I finish my due diligence I can place my bid and watch the auction unfold live on my computer screen.

That’s a lot of stuff and I’m sure I left a few things out.  Whenever I log into the system I think of Gordon Gekko.  With all of this information at my fingertips I can make better buying decisions.  It makes we want to go around quoting him.  This line is one of my favorites –  “I don’t throw darts at a board. I bet on sure things.  Read Sun-tzu, The Art of War. Every battle is won before it is ever fought.”

I posted 4 videos here today.  On Monday I will post the other three.  Here’s the order:

  1. Property search
  2. Identification and research
  3. Market analysis
  4. Marking for bid (title and drive report)
  5. Placing the bid
  6. Watching the bidcast
  7. Final Results

*For the best resolution I recommend you view these videos in full screen mode with the 720p HD option selected at the bottom right corner of the video box.

Video 1 – Property Search

Video 2 – Identification and Research

Video 3 – Market Analysis

Video 4 – Marking for Bid


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Riding the REO Roller Coaster

Earlier this month Swedish scientists published a design for what could be the world’s smoothest roller coaster.  Evidently roller coaster technology has really evolved since the first kind with a loop was designed in 1846.  This 13 foot coaster entered the loop with so much force that it would break the riders’ collarbones.

So ponder this question for a moment…if the Swedes can design such an elegant and comfortable roller coaster ride (a highly scientific, but admittedly fun task) then why can’t banks and asset managers come up with a more efficient system to liquidate their growing inventory of homes?  Yes, there have been some minor improvements.  But, we are three years into this slide and they still haven’t completely mastered what should be a very simple process.

On June 26th I attended an REDC auction.  REDC auctions off excess REO properties that aren’t selling on the MLS.  Many of them aren’t even on the MLS because they have an issue (i.e. they’re occupied or are uninhabitable.) I won the bid on a home in Goodyear, Arizona.  It was an all cash sale so presumably the closing would occur very quickly.  Well, here we are 33 days later and I just got the executed purchase contract from the asset manager at American Home Mortgage Servicing.  What is amusing is that the transaction coordinator at REDC asked if I wanted a “quick closing.”  Can you imagine how long it would take to get this deal done if I said no?

About this same time I wrote an offer on a Fannie Mae owned home in Chandler, AZ.  It had been on the market for more than 60 days and needed a major rehab.  We ultimately had our offer accepted after some back and forth negotiating and were on our way to opening escrow when I got the addendum with this language:

GRANTEE HEREIN SHALL BE PROHIBITED FROM CONVEYING CAPTIONED PROPERTY FOR A SALES PRICE OF GREATER THAN $264,000.00 FOR A PERIOD OF 3 MONTHS FROM THE DATE OF THIS DEED.

Oh no.  The dreaded deed restriction!  Fannie Mae apparently doesn’t like it when investors like me fix up their houses and sell them for more than they can (in good condition this home would retail for $285,000.)  The problem here is that this home will not sell to anyone BUT a real estate investor because it’s a clunker.  I just checked today and the house is still on the market…93 days and counting.

I’m by no means suggesting that you should give up buying REOs.  There are some great values to be had.  Just be prepared for a wild ride that won’t break your collarbone but may make you sick.

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