Ron LeGrand’s MAO on this is $81k. You may have trouble finding an investor at $87k but it is worth a try.
I like the idea of a prehab and going for a handy man owner occupant, but will the current condition of the house make it difficult to get a new first mortgage?
Another exit strategy may be to sell the house with owner financing and simultaneously sell a note to generate the cash to repay yourself. You might want to avoid the expense of a hard money loan if you take this strategy.
I am going to bid on a DeKalb county foreclosure offered by McCalla & Raymer. Do I have to stand around (in the rain) all day, or can I figure out when they will be there and show up then? I called the attorney, and they were not very helpful. Anyone got a contact over there?
Also, any other tips or suggestions would be welcome as I have never bought at auction.
Here are some details, for those interested…
ARV: $130k
Opening bid: $68k
Repairs: $10k
I am the only one who has been in the house, and it looks like a dump, so I don’t expect any other bidders. Most of the houses around there are smaller and lower-priced, so most investers would assume the $68k price is too high (I hope). I have been working with the owner, but she has a huge second and I couldn’t arrange a short-sale in time.
I have already run title and have my insurance lined up.
After the sale fell through, I managed to raise the money for auction and will immediately get a hard-money loan to get my money back.
I intend to prehab it ($1k max) and try to sell retail for $105K as a “sweat equity” house. If no takers, I will flip to another investor for $87k cash.
Re: ? for Atlanta-area investors - Posted by Warner(ATL)
Posted by Warner(ATL) on June 05, 2000 at 14:07:29:
Mark,
After having observed McCalla, Raymer at the Dekalb courthouse here is what I’ve noticed.
They are the main foreclosure attorney’s in the Atlanta area thus they have to send 4-5 people to each courthouse in the metro area every first tuesday to go through their stack.
The people they send are not attorney’s but are usually there title people (no suits, just gym shoes and jeans :)) who work for them, and are usually at the courthouse everyday.
Get there early and ask some of the investors there which ones work for McCalla, Raymer, and go to each one and see which one has your foreclosure file. Let them know you are interested, and they will usually let you know when they are going to auction it.
The people in the McCalla office are very uncooperative but you will find a difference in the people at the courthouse, they are everyday people and they are typically cooperative.
Make sure the person you are foreclosing on does not plan to file bankruptcy today. Once, this happens games over for a while. I have noticed some high-equity foreclosures which were dragged through bankruptcy for a year and poof! no more equity due to back fees, foreclosure fees, late fees, etc…