(2020) How to Buy A House at the Auction! - FROM AN AUCTIONEER!!

I get so many questions when it comes to how to purchase a house at the auction I am an actual auctioneer I do conduct auctions here in downtown Memphis so I am going to answer all of the questions that I get when it comes to purchasing a house at the auction so if you are interested in learning more please keep watching thank you so much for watching and don't forget to subscribe okay guys so let's jump right in I got my clipboard so I don't forget anything so first things first a little bit about me I am my name is Ashley Pickens I live here in Memphis Tennessee I've been a real estate agent for about fourteen years I became a broker in 2018 and then I became an auctioneer in 2019 so I have navigated a lot of the different channels in the real estate industry but this video is all about auctions okay I'm answering all the questions that I get when it comes to the auction okay so the most common question that I get is where do you find properties that are going up for auction so most of the time the best place to look would be the newspaper or online here in Memphis you can check the Daily News you can check wherever you live check your local paper because it is required that the mortgage company the person whoever the bank that has the house has to formally announce it to the public they have to announce it to the public that a house is going up for auction and they usually do that by putting it in the newspaper so check your newspapers you can also Google if I were you I would Google trustee sell auctions in whatever city you live in and you will get a list of people there are a lot of third-party vendors that post auctions on their website so put in trustee sale auctions in Memphis in Miami in Texas in Dallas wherever you live and it should pull up a list of houses that are going up for auction the bank is required to announce that the house is going to production so people who have an interest in the house can know that the house is going up for auction anybody who would have an interest in that property or if the home owners owed them money you know so a lot of times I will see when I'm reading the notice of sale which is what I have to read before the properties get auctioned off it'll say it'll list the interested parties and sometimes it'll say the IRS sometimes it'll say chase bank has a you know interest is interested in the property or if that means the owner of the house probably owes them money and they are interested in possibly getting some of the money when the house sells okay so but my point is they have to publicly announce that the house is going up for auction okay another commonly asked question I get is Ashley are you really at the courthouse steps option off real estate properties and the answer is yes I am literally here at the county courthouse steps auctioning off you can find me there in most counties most cities the auctions are conducted on your County Courthouse step ok another commonly asked question I get is what forms of payment do I accept at the auction and this is super easy super easy question to answer it's basically two forms of payment I take I only take certified funds what are certified funds basically cashier's checks that is the most common form of payment most people use cashier's checks or cash what I do not take at the auction are credit cards I don't take credit cards at the auction I don't have a credit card machine I don't tape pre-approval letter I do not accept those so for example when a bank or a mortgage company issues you a pre-approval letter its contingent on a home inspection and appraisal your taxes your employment your credit it is not a guarantee that you can buy the house and the options when the highest bid is confirmed I need your money then and there no credit cards no pre-approval letters and no personal checks no one I'm not taking a person to jail [Music] no personal service no credit cards no pre-approval letters certified funds only cashier's checks and cash that is what I would like I prefer cashier's checks because sometimes the opening bid is a hundred thousand dollars I don't want you to bring me a hundred thousand dollars in cash it's a court house steps bring me a cashier's check cashier's check that's just easier safer for everybody involved totally up to you what kind of catch the amount of the cashier's checks you get you can get 10 increments of tens increments of 50 s depending on what the opening bid is you can at least get the opening bid amount if the opening bid is 53,000 you can at least get a cashier's check for 50,000 and then maybe get increments of fives you know like three five thousand cashiers three $5,000 cashier's check you know so you'll have one big chicken in the other increments like I've had an instance where it's only one bidder when there's only one bidder at the auction they usually get it for $1 over so if the opening bid is $50,000 they will get it for 50,000 and $1 if it's only one bitter there that has happened to me several times but you just you just gotta figure that out that comes with the process if I were you I would like to come to an auction just to see how it goes see the flow may be in your safe the big jump up by 10,000 or 50,000 so you kind of know what kind of fun is you need the majority of the time these houses are purchased sight unseen but you should still do your due diligence that means definitely drive by the house once you get the address drive by I do not recommend you peeking through the windows or walking up to the house or maybe trying to open the door I do not recommend that at all because sometimes somebody might still be living in the house so as far as safety goes I would not recommend doing that but you can definitely drive-bys drive by the front of the house see if the roof has any damage see what repairs you can spot or what kind of condition the house is in from the outside if the paint chipped a lot these are some things that you can see from the outside of the house are there broken windows is the house boarded up the house might be boarded up so check and see drive-by drive at nighttime maybe look at the neighbors houses you know see what kind of neighborhood is in see if it'll be a good investment with all investments to be its stock real estate whatever it is it's always gonna be a certain amount of risk involved so if you can't see the inside of it you need to kind of set a cushion for how much repairs have been make sure there's enough room between what you pay at the opening bid and what you can sell it for and factor in those repairs it's got to make sense all investors know anybody in real estate we all know it's a numbers game so my advice here's my advice my little two cents you gotta take your feelings out of it a lot of times get out your feelings and look at the numbers it's all about the numbers if the numbers don't make sense do not bid on the house if the opening bid is too high there is no point in bidding on the house so this leads me into the next question are people still living in the house and the answer is it possibly could be somebody still living in the house squatters could be in the house the homeowners could still be in the house but if you do end up winning the house at auction and people live in it then that is you're gonna have to go through the eviction process to get the people out of the house so that is another thing you need to factor in when it comes to purchasing houses at the auction people could possibly still be living in the house do I have T's to the property I do not I don't have keys to the property depending on the week I have five or ten houses that are going up for options they don't send me any key so just plan on getting a house repeat if you have the highest bit okay so this also reminds me of a lot of people ask me so how do I get the deed or the title to the property so once you pay your money here in Memphis I work really closely with an attorney's office Dec has a lot of these properties so usually within 24 hours you can get they will mail out the deed to you there has been instances I will say this I have heard of an investor one of the investors to buy at the auction all the time since that he bought a house pays for it at the auction and they went out and reheated about a week later in the mail they got a refund back of all their money so what happened was the owners I guess got the house out of foreclosure or they paid for it and the homeowners got it back so they sent him a refund in the mail he had already repeated I don't know if he had started work on it but the paperwork I guess the homeowners got it back before they filed the paperwork saying they had gone to auction and Vince you know award it to someone else I have no idea how it works anywhere else in any other cities that's how it works here in Memphis Tennessee so we usually get the deed to you you don't have that problem with the homeowners coming back redeeming the property after you paid for it okay so let's say the winning bid is $7,100 all you have is a cashier's check for $10,000 now you won the house for $7,100 yes I still want your entire $10,000 cashier's check so I'm gonna write your receipt it'll have all your information I'll get all your information on it with your address and everything and then we will issue you a refund in the mail so yes if this you won the house for 7,000 and all you have is a $10,000 cashier's check I want your $10,000 cash your check so keep that in mind but a lot of people what they'll do is they'll get cashier's checks in each increment so they'll get some $1,000 crashers' checks or maybe $10,000 or $5,000 cashier's check okay so since I am an auctioneer I'm gonna kind of walk you through the process of the auction how it works so I'll put up the forms on the in the video so you can see exactly what I'm talking about but once you get to the auction you have to sign in okay so I'm going to give you a sign-in sheet and it's gonna ask you the best thing name a lot of people buy houses in their LLC if you have an LLC so your name might be Joe Brown lecture LLC name is brown investment company so on when you sign it it's going to say what is the vesting name and you're gonna put brown Investments LLC so when I write to your receipt when they send you the deed in the mail it'll have brown investment LLC and not your personal name but if you are buying it in your personal name that would be the best thing name - so I get you to sign in it's a bitter sign-in sheet I will put this on the screen so you can see it so I need you to say everybody signs in everybody who was there you sign in so I can get your information and so then I have to read the notice of sale so it could be one page it could be two pages I have to read this this is like the public announcement that this house is going up for option so I read the notice of sale and then I'll let you know if there are into any interested parties in that then I will announce what the opening bid is it could be seven thousand dollars it could be a hundred thousand dollars I'll announce the opening bid and then that's when everybody who wants to bid that's when it's starting so if the opening bid is seven thousand the first person will say plus a hundred right so seven thousand one hundred then the next person however many people are there and usually we go by hundreds plus inexorably 7100 7,200 so then sometimes people will be like okay let's move this along so then somebody else say eight thousand then I'll be eight thousand one hundred eight thousand two hundred then we'll get ten and then it goes on from there if this is your first auction I would say feel it out get the tempo see how it's going you know don't just get excited and get out there and just spend all the money so that's how it goes we everybody goes until people fall off and then whoever has the highest bid they are the winners they are the winner and so they come over to me I write them a receipt right then in there so I think I kind of went over everything with the property like I said if you are the bitter with the highest you have the highest bid when I give you a receipt I give I just thinking people the notice of sales so you can have that and within a couple of days the deed will come to you and that property is if I did not by chance answer a question that you have please feel free to leave it below and I will do my best to answer it again I'm in Memphis so I'm not sure how other cities you know handle options but I could try to find out I'll try to find out for you and last but not least I asked my followers on Instagram if you wanted me to do a weekly blog and everybody said yes so I'm going to start the weekly blog next week so you'll be kind of a behind-the-scenes look at how auctions work how to prepare for an auction how like the day in the life of real estate agents how I market Plus mom life so you will get all of that I will do a weekly vlog starting next week so make sure to subscribe if you aren't interested in seeing that so again thank you so much I hope this was helpful you learned more about the option thank you so much for watching don't forget to subscribe

Channel: Ashley Pickens

Views: 11,061

Rating: 4.9593496 out of 5

Keywords: how to buy property at auction, how to buy a house at auction, real estate, real estate investing, foreclosure auction, auctioneer, trustee sale auction, trustee sale, trustee sale vs foreclosure, ashley pickens, tips for getting bank owned properties cheap, investing in real estate, foreclosures, how to buy a foreclosure, how to buy bank owned homes, tax sales secrets, tax sales real estate, tax deed auction, real estate auctioneer, buying at auction, auction (industry)

Id: nlxtUf9PjcU

Length: 16min 11sec (971 seconds)

Published: Tue Jan 07 2020