Today I attended my county foreclosure auction. Glad I went. I can see why the REOs on the MLS are of poor quality and are also few in numbers. This small group of investors bought many of the properties that came up. They had previewed almost all of them, and were clear why they let go of the properties they let go of. The investors were friendly and helpful in showing me what they were doing and how.
Two of the investors owned brokerage companies that buy foreclosures from the auction for other investors. They also provide both hard money loans and private financing. The terms are very short @ 9 months and rates 10%+. With the stipulation that you later sell your property with them when you flip it (it was assumed you were going to flip, which I’m not ready for that - and this wasn’t a deal breaker).
Can anyone shed any light on the RE Investment brokers? This seemed reasonable to me. They both charged a 3% commission for buying the property which included a pre-viewing the site, title search, doc search, etc. They purchase the properties with hard money and then I need to convert within 9 months which means I would need to wholesale these or find a different bank to work with b/c my current bank does not cash out investment properties.