What qualifies me as a Foreclosure Specialist? I’m glad you asked!
My past experience…
During the 80’s and early 90’s, I was one of a handful of active “Trustee-Sale Investors” working in the San Bernardino/Riverside counties. Besides the 25 or so curious spectators that frequent some of these public auctions, for the most part, there were truly only 5 or 7 of us that were active auction bidders. We religiously showed up on a daily basis at the trustee sale auctions to compete against each other. Some interesting short and long term partnerships were formed along the way. During this time, I purchased over 60 properties at the county court-house steps in Los Angeles, Orange, and mostly San Bernardino and Riverside counties.A significant number of the properties located in L.A. and Orange country often times were bid close to or over market value by the uninformed and emotionally charged so-called “investor”. There is no point in paying all-cash while purchasing a property with only a small amount of “estimated” equity; a value that can be easily wiped out by a lien position error or some other not so silly potential mistake. Of all the properties I ever purchased, I never paid more than .50 cents on the dollar, and by 1990 I had accumulated over 20 properties in my own personal real estate portfolio. Over time, I was also involved in over 40 other transactions with my small group of real estate investors.
As a trustee-sale investor, you better learn to do it all, from “A to Z”…
I personally searched ALL the lot-books and chains on every single foreclosure notice I received from “County Records Research”, local newspapers, and several other sources. My research was conducted inside the plant services at First American Title and Fidelity Title, San Bernardino and Riverside. At the time, this was all mostly done by-hand, printing from microfiche, and using limited computerized records. I had to accurately figure out lien positions, never making a mistake (Errors in this area can literally wipe you out!). I ran GI searches insuring and minimizing the unknown.I handled all the financial ends of things, the cashier checks and personally bid at all the auctions. I estimated “as-is” values, associated rehab costs, future market value and finally the potential profit/equity after deducting all costs for each of the properties purchased. I handled evictions (contested or not) and making all the necessary court appearances when necessary. I negotiated cash-for-keys with occupants, handled lock-outs and the securing of the properties. I was also directly involved with property rehabilitation and repairs, as well as the subsequent property management and marketing when properties were sold.
Please be aware that the most technically challenging, time demanding, risky and lucrative way of purchasing real estate to me, has always been the “Public Trustee-Sale Auction”. This is by far my preferred method of property acquisitions, one that is available equally to the buying public with NO preferential treatment, or benefits of “who-you-may-know”. If you have the desire, knowledge, time, and the required funds, you too can become very successful at purchasing properties at the trustee sale. It’s not easy but it is possible and extremely exciting!
Fortunately for me, the experience I gained and what I learned of the trustee sales process, all came from actually doing it, and not by what I read in a book or tried to learn in a 2-hour foreclosure seminar. So how did I get started? The initial technical training I received, and the individual deserving all the recognition, was from none other than my long time idle and “foreclosure guru”, Attorney John Beck of Alameda County. I thank you again John! You have always inspired me!
Some last thoughts and comments… Back in the day when I was involved in purchasing properties at trustee-sale auctions, foreclosing Sr. liens actually had equity behind them most of the time, but they rarely do anymore. During the last decade, when the primary means of financing the real estate most of us could not afford, we had the irresistible but irresponsible funding of high LTV loan programs along with the use of irrational lending guidelines. Nothing made any sense! We now find ourselves in unprecedented times, unchartered territory and nothing like what I personally experienced in the early to mid 90’s during my first down-turn exposure in real estate.
The new group of foreclosure investors has a difficult challenge ahead, with an ever changing landscape of rules and regulations. It is not going to be an easy fix. It will take time but if you play your cards right, many of you will make and get to keep some great investments. Times have certainly changed, again…
Should you have any questions or if you feel that I can be of further assistance to you, be sure and drop me a note. I can be contacted at:
Best wishes!
Broker, Realtor®, GRI, e-Pro, Bilingual
Real Estate Appraiser
REO Certified Listing Agent
Short-Sale Certified Agent/Negotiator
Trustee Sale Auction and Foreclosure Specialist
- California Real Estate License 01105386
- California Real Estate Appraiser
(800) 456-9107 Office
(866) 503-0344 Fax