OfflineHello Dean Graziosi Family
I've been a RE investor for the last 3 years , and a student of DG , but very inexperienced in auctions , however , the last couple of days I spend some time searching the list of the properties auctioned in NC , by REDC. I used Dean's Total View page and I did check it on other sites as well .
Finally , I decided to go for two properties , and in the end I won both
bids . I haven't personally inspected the homes , and I have like 48 hours to do so before I sign my contract with REDC . The contract itself ( 32 pages ) is not easy to read , I would run it tomorrow to the attorney , before I sign it and send it to REDC ( the company that auction the properties ) as well as the amount needed in the escrow .
Then the seller ( Fannie Mae ) takes 15 days to decide if to accept my offer or not .
My Q :
1) did anyone of you deal with this kind of auctioned properties ?
2) Are there any hidden fees ?
3 )anything in particular I should pay attention to ?
4) do I choose the escrow account or the seller ?
5) do I need to be at the closing ?
6) how do I know the REDC is a legit company ?
7) should I have the properties inspected officially ?
and what are my back-out options ?
meisela
Thank you sincerely ,
Meisela
"If you think you can or if you think you can't, you're right! "
I went to one REDC auction here. I mostly went for the experience and to see if I could expand my buyers list. They passed out information about how much money down and fees expected and I though they were pretty upfront about the costs if you read through their whole packet. Mostly I heard from a lot of people that the prices aren't really that low. People just get excited and bid upward, but if you're experienced and ran the numbers, then you should be good to go.
Here, they offer open house the week-end before the auction and that is the only time you can inspect the property. I actually made a list of home that I would buy if I had the funds, then looked at them and followed during the auction. I have heard stories of people with the highest bid, then the seller turning around and saying they want more later on. I don't know if that's true or just stories. I'd like to hear after you close on the house how it went.
Thank you for your comment , mbjoseph . Your experience sounds pretty similar with mine .
Additionally , after winning the bid : They've sent me a bunch of papers to sign electronically ( 43 pages !!! ) , and they were lots of gaps in their infos , for example , Exhibit 1 , the physical address , the binding title , etc . I took it to my attorney , and he thinks it's covering the seller's interest , and the seller probably can have million excuses to refuse the bid . It's not very easy to read the contract . I've been told to get my own closing attorney in the city the property is. They are asking for my broker's name , and I am not even sure they will pay him .
Now I am in waiting . In the contract they want to close on the 25th of May , so I would let you know .
Thank you sincerely ,
Meisela
"If you think you can or if you think you can't, you're right! "
Meisela
Keep me posted on how this goes, I'm curious. (43 pages???) I have pending sale on my first flip and mine will close end of May, too. All I can think of is what possibilities I have next.
Margaret
Margaret
I called the auctioneers and they we have to wait for the bank decision , and although the reserve wasn't met , we still have chances .
Good luck with your deal , keep me posted .
meisela
Thank you sincerely ,
Meisela
"If you think you can or if you think you can't, you're right! "
In Ca. the bank has 14 days to accept your offer. During this time they are trying to sell the property for more. They might come back to you and ask for more time. Don't give it to them. All they are doing is using your bid as a starting point. If they think they might loose you it lights a fire under their decision. I have been involved with 7 properties with REDC.
OK , Curran6 , but in the end did you get them ? and what was the proportion you got them ( like 50% market value ? )
but what can I do to pressure them a little ? I am sure that they are looking out for ways to sell it for more > they told me also 14 business days but they reserve the rights to postpone the decision as long as they want . Not that I am wasting my time waiting by the phone , cause I would like to keep always 4-6 deals in the works , but I am dying to know where we stand , wouldn't you ?
I also decided I am not letting them get to me and offer them more then they want , no way .
But let's wait and see , their inventories become larger and larger and they would eventually need to take some decisions sooner or later .
However , thank you for your comment , and advice .
meisela
Thank you sincerely ,
Meisela
"If you think you can or if you think you can't, you're right! "