Below is a communication from Bruce Norris and his updated thoughts on the auction market. I have had a similar experience with the auction companies also - we won two bids at two different auction companies just to be strung along for several weeks and finally have the offers rejected. It is also a challange to get your deposit check back from them at the appropriate time. They seem to be arrogant and less than communicative which is frustrating. This communication from Bruce is heartening - the deals are coming down the pike here, patience is the best strategy right now.
It is interesting because the banks are also getting more flexible and the wave of opportunities is moving toward the Bay Area, something that was confirmed by Sean O"Toole founder of Foreclosure Radar.com when he addressed our group recently. One of the things that we do well at the SJREI is provide the relevant facts and information so people can make educated decsions with regard to their investing.
There are a lot of investors hurting out there at the moment, and paying the price for purchasing properties for the wrong reasons or jumping on the real estate band wagon. I have heard all of the stories and some of them are heartrending - people who are retired going back to work because they blew their retirement funds on real estate at the top of the market and now have to let the property go back to the bank. If we can prevent any of these irrational purchases we are accomplishing our mission at the SJREI. Right now is a good time to become educated on the market so that you are poised for action when the right opportunity presents itself...
Bruce Norris Comments
"I just wanted to let you know of an important development. This is extremely important if you have won bids at a Hudson and Marshall auction this week or are planning on bidding at the auction this weekend.
We were the winning bidder at the Hudson and Marshall auction on seven houses. The auction company had countered our offer on five and rejected the other two. We refused their counter offer in each case and stuck with our original winning bid.
On one particular property in Riverside, Hudson and Marshall countered our winning bid of $112,000 at $139,500. We held firm at $112,000. Hudson and Marshall got back to us today and accepted our original winning bid! We also know this has happened to a few other investors that we spoke with today.
This makes me very happy, not just because of the profitable deal but it signals the capitulation of the lenders. The auction produced multiple 60% deals. I think that trend will continue. The fact that the lenders are learning they better take the final bid is very exciting. FINALLY!!!
I wanted to let you know this information in case you are attending the auction this weekend. From what we've heard of the many days of the auction so far, the audiences have shrunk and the majority of the bids are lower then they have been in the past.
If you win, expect to get countered. If you get a counter, don't take the bait!" Bruce Norris
Saturday, June 14, 2008
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