auction on tuesday

[David White]

we have done a lot of research and kinda leary on which property to bid for..the question i have is...if the property in question has a "clear" background and everything checks out, how would you determine from the unpaid loan amount, what you would profit on the property? for instance, if the unpaid loan amount is 64,000 on a deed of trust that is 84,000 how would you determine the max price to bid, just from having the market value from the tax accessor value? let me know if i am making any sense??

[George Roddy, Jr.]

David,

I'm a little confused...

(You) How to determine the unpaid loan balance..

(A) First, all you can really do is get a "estimate". We do this by amortizing the loan based on information provided by the recorded deed of trust. Getting personal information on loan status and balances is a private affair.

(You) What you would profit on the property....

(A) This is very subjective... I talk to some investors and they say " If I can't make 50k, it's not worth my time".. others say " 10k in 2 months is not a bad wage".... The answer lies betweeen your ears! My personal feeling is if you can make 15k in 3-4 months, its a good return.

(You) How would you determine the max price to bid, just from having the market value from the tax accessor value?

(A) First, do not base your "max price" on the tax assessor! You need to hire someone to run a comparative market analysis in that subdivsion. You need to know all the active property on the market, what is under contract (pendings) and what has sold in the past 6 months.

You need to have someone do this for you OR you need to get access to this information. CAUTION: you need to get trained on how to effectively research a comp service database. GOOD NEWS- I know someone who has this COMP database.

COMP SERVICE INFO: Property Analyzer PRO- provided by Foreclosure Listing Service, Inc. www.flsonline.com / phone: 972-250-0993 contact: George Roddy, Sr. Cost: $79-$99 per month.


Hope this helps.


George