Tom: I was headed home to Greenbriar and cut through the Fairfax County courthouse complex just for grins, and saw folks gathering in a huddle on the landing at the top of the courthouse steps.
Is that where they have the foreclosure auctions?
Steve: Yes Tom, believe it or not, no matter what the weather the sales will happen.... and it was nasty cold today. The attorney was dressed like a gold miner headed for the Klondike.
In Virginia which is a deed of trust state, the attorney for the trustee shows up at the advertised time and says something to the affect of "This is the trustees sale being held on behalf of trustee John Jones by the firm of Black and Decker.
I have 5 properties on the list for today and they are as follows...and he reads them off.
There was nothing for sale near Greenbriar today, by the way.
Tom: Can I go there and bid myself?
Steve: Yes Tom but this is a serious business and there is much risk. You really better know home values accurately or you will get toasted....Zillow estimates ain't gonna fly....There are almost no regular folks seeking a bargain on a personal residence there.
Unless you have a lot of real estate experience and money that you can afford to lose, my advice is that you go and watch and possibly try to apprentice yourself or be a helper to some of the people that go there regularly.
In our area, you need to show up with around $20,000 in cashiers checks or 10% of what you plan to bid.
If you win, you give the money to the attorney right there and have the ability to close the transaction with the rest of the money in 15 days.
There is generally no opportunity to inspect the interior of the properties, since they are occupied by unhappy homeowners who are losing their residences to foreclosure and there are no lock boxes with access to Realtors (at least here there aren't)
Tom: If I can't see the home, how do I know what I should pay for it?
Steve: Well Tom, that is the tough part. If you are going to attempt to buy the home, fix it up and sell it quickly (this is called flipping)
You have to evict the people living there, carry the home with utilities, insurance and taxes until you can get it sold and repair whatever happens to be wrong with it.
Then sell it and still make a profit. Even people who are experienced can take a bad hit.
That is why you need to study the process and ally yourself with someone who can teach you ....but you should be prepared to bring some effort to the table to assist whoever is going to be your mentor...provide either money, research or labor. The folks who do this regularly have earned their battle scars and you will have to pay your dues as well, unless you have money to burn and plenty of time to invest.
There is so much more to say about this that cannot be said here. There are courses you can buy that give you guidance, or you can do as I suggested and go hang out and watch and build a relationship with someone who can help you learn the process.
You should probably do both ....read all you can and be an apprentice.
It is a tough business but obviously there is opportunity, or no one would do it.
Have fun.
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New to Northern Virginia?
Here is a photo ensemble of homestyles and countryside:
http://video214.com/play/ngb0RJKin5pR3jr2CUotnw/s/dark
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