Mortgage Refinance As we enter a new year a lot of people are still wondering what is going to happen in the real estate realm. How soon will we recover? A year or longer? Because of these issues and shear volume of distressed properties, a lot of people are claiming that this year 2010 is the year of the real estate auction. We tend to agree.
That said there are some things you want to know before flinging yourself out there and possibly getting yourself in trouble at an online auction.
So we’ve devised a list of 8 things you want to do to prepare yourself for an online real estate auction.
#1 Contact the Auctioneer
Ask the auction company to supply you with information, over the telephone or email concerning specific properties as well as the online auction process itself.
One of the things you want to do right away is to get in contact with the people that you’ll be dealing with for this online auction. Who is that going to be mostly? The auction company! Visit their site and I highly recommend going ahead and calling them them. Do some research about the auction company.
* Do they have a good reputation?
* Do they close the properties they ‘sell’?
Twitter, Facebook and other social media outlets are great for this type of stuff. Ask around – odds are you’ll find someone who has done business with them in the past. One thing to keep in mind though. With competitive bidding there ARE sore losers out there. So if you get feedback make sure it is from someone you think is reputable themselves!
#2 Do Your “Homework”
Find out as much as you can about the property. Check first online. This is an online auction the auction company will try and put as much information online as possible. Call if you still have questions or can’t find something.
This one is really a no brainer. You’re going to be spending thousands if not hundreds of thosands of dollars on this property or properties. Check up on it. Go down to the courthouse. A lot of information can now be found online, but you need to be motivated to research the property or you probably shouldn’t be bidding on it.
juegos Services to Offer to Landlords
Your real estate cleanup services for landlords should, at minimum, include move-in and move-out cleaning, debris removal, and yard maintenance. You can also include lock changes, carpet cleaning and changing, painting and minor repairs if you are set up to handle those services.
Remember, your foreclosure cleanup business should already be structured to handle “real estate cleanup,” too; not just foreclosure cleanup. Why? Because when the foreclosure crisis quiets down (and it will be some years), you still want to be able to capitalize off contacts you’ve made during the foreclosure crisis.
Your real estate cleanup division can offer the same services as your foreclosure cleanup division. You will simply market them slightly differently. Remember, as long as real estate is in existence, you will have an evergreen business in handling lawn care, repairs, painting, trash-outs, cleaning, etc., no matter if you’re servicing an apartment building, a foreclosure client, a buyer’s new home, etc.
homes for sale #4 Prequalify Yourself
This increases your comfort level by knowing your mortgage qualifications. This is especially important in today’s economic environment. Even before you decide on a property to buy, you should prequalify yourself through your banker. There is generally never a mortgage contingency in a real estate auction. It is best to know you can pay for the property before you bid.
In our current economic climate this one is important. Don’t make the mistake of winning something at auction only to find that the bank doesn’t want to work with you. At best this might only delay the closing if you have to ask for an extension. At worst the whole deal can fall apart and you have to give up your earnest money. Ouch!
Property Management Companies
Many landlords, especially those with more than a few properties, use property management companies as their right arm to handle their rental properties. These companies do everything from screening tenants, to collecting rent, to handling evictions, property cleanup, maintenance, repairs and inspections. Contact property management companies in your area to offer your foreclosure and real estate cleanup services.
Working with Landlords in Eviction Scenarios
You can position your company to work with landlords in eviction scenarios in two ways: 1) you can choose to work with the sheriff’s office to remove items from a home after a landlord has gone through a formal eviction process; or, 2) you can decide to instead focus on post-eviction cleanup, which means you will work with the landlord in getting the property in rental shape after the legalities of the eviction are over.
When working with landlords in post-eviction scenarios, make sure the eviction process is over, over, over before you enter a rental property. If you feel like the landlord is still in the process of evicting someone, do not move a thing out of the home or unit. You need to be sure the legal process has run its course so you’re not caught up in litigation (or worse!) by an angry tenant.
If you’re not sure about an eviction scenario, or your gut is telling you something stinks about the eviction, ask the landlord for proof of the eviction. Tell the landlord it’s simply part of your company policy when working in recent eviction scenarios. Really, this little tactic will protect you, your workers, and your real estate and foreclosure cleanup business.
The Landlord’s “Tenant” May Be Your Next Foreclosure Cleanup Client
Ironically, your business’ foreclosure cleanup arm may very well find its next client in the landlord’s apartment or rental home. How? Many tenants are renting again because they have just come out of default or foreclosure.
According to a recent article in the Wall Street Journal, many owners of apartment complexes actually seek out potential tenants who are in default and nearing foreclosure. For example, the article cited Camden Property Trust, a leasing company that owns 62,903 rental units in the Las Vegas area, as buying mailing lists and marketing to owners who are about to lose their home in foreclosure.
This is proving to be a successful marketing tactic for many landlords and management companies. So don’t be surprised if you are hired for cleanup jobs from the landlord’s new tenant. Some of these tenants ultimately avoid foreclosure by getting paid incentives from their mortgage companies to move out early and leave the home in decent shape; which means they’ll have cash on hand to hire a company like yours.
#7 Register To Bid
Most online auction companies require some sort of registration process before you’re allowed to bid. Some require identity verification by some method. Find out what this is. Call and make sure you’re comfortable with the amount of information you’re providing and what the auction company will be using this information for. Remember: Due to the anonymous nature of the internet they are just as wary of you as you are of them. Seek advice and ask questions from other people or brokers who have participated in an online auction and get information about this Auction company.
Upon completion of registration you will generally receive a bid number, terms of the sale, and other important auction day information (again check the auction company for exact details).
Not much to say here other than get signed up ahead of time. No one wants to miss out of a real estate opportunity because they tried to register too late. If you rush this you’ll feel rushed for the whole process and you’re putting yourself at a disadvantage from the start. Just take the time and get registered early on so it is one less thing you have to worry about.
#8 Check for Required Deposits
If you are the successful high bidder at an online auction, you will be normally be required to affirm your bid with a digital signature or email reply and some sort of deposit. Check with the auction company for exact details on what type of money deposits are allowed and accepted (Generally a certified or bank check are required) and how to get that money to the company since it was an online auction.
This one is all about being able to perform after you’ve won a property. This step will set the tone of the entire closing process. The auction company wants you to purchase the property but they don’t know your financial situation. The auction company is trying to determine if you’re going to follow through with your bid. You have to make sure that you follow directions after the auction to show them that you’re a serious buyer. If it seems like you’re not going to meet the post-auction requirements they will sell the property to someone else. Don’t lose your opportunity to buy your dream house because you didn’t follow the post-auction instructions. You can be published without charge. You can to republish this article in your website or blog. Please provide links Active.
