A few basic questions.

[Will Crozier]

I just took the online course for doing your own title search. Good stuff! I like the widespread use of technology with Roddy.com and it's affiliate sites. There seems to be some very good knowledge around these parts!

I have a few unrelated questions that I haven't been able to find answered by another postings on this forum. Please forgive me if I've missed the answer somewhere.

Is there any issue with buying residential properties "on the steps" using an existing Texas LLC? Are there any potential pitfalls in doing this vs using your own personal name?

I have read that in some hard hit areas, banks are instructing their reps/trustees to start the bids somewhere between 15%-20% below what is owed to unload more properties. (sort of functioning like an immediate short sale on the steps) Is this occuring anywhere in DFW or Texas?

If a superior or irs lien is in the process of being filed but has not been recorded before it is auctioned, is the lien enforce by being passed on to the winning third party bidder or is it void / dropped?

Are oil/gas leases that are attached to a property a major deterant to either the auction investor or a future potential buyer in a fix/flip?

At the auction, do the cashiers checks need to all be from the same source or person are can they be a combination of people/llc's?

I know that I've asked a lot of questions! I even posted two more questions under other threads because they were follow ups for previously asked questions. (escrowed property tax thread, and title insurance thread)

Thank you in advance for any/all help that you can give! It is greatly appreciated!

[George Roddy, Jr.]

Will,

Thanks for the praise! Answers below:

1. Buying at the auction using a LLC ok? We believe that owning investment property in a LLC or Trust is much better than personally. We would recommend that you buy real estate in a Trust (easy & inexpensive to create yourself) and have your LLC as the beneficiary.

2. Are banks discounting their balance at the auction in DFW? YES. To find out which ones, you need to get the "Auction Results" report from www.flsonline.com (a Roddy Co.). This report will show you the price that banks are offering at the auction and which ones are discounting.

3. IRS lien is not filed? If the IRS lien was not filed prior to the auction, then it does not follow the new buyer (the investor). It follows the prior owner.

4. Oil/Gas Lease? We believe it's an ASSET! If there is a current lease or mineral interest on the property that you buy on the steps, then this lease/interest conveys to you. Not only do you get the property, but you have the right to collect on the remaining lease or sell the mineral interest. Thats a BONUS!

5. Auction Payment? We suggest that you have the cashier checks from the same party. It's doesn't state anything specific in the Texas Property Code, but most trustees will balk if the checks are from different parties. You can try, but it might backfire on you.

Good Questions....and as always, thanks for your business.


George

[Will Crozier]

Thank you very much for the responses! What a fantastic resource. I will definitely be spreading the word!

[George Roddy, Jr.]

Here at Roddy.com, we aim to please our customers!