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Auctions can be a fruitful money-printing machine in your real estate investing business. But they can create more headaches than moolah — especially if you don’t know what you’re doing.

Most investors don’t do their due diligence — both before the auction and after they purchase the property — and that can cripple your profits (or even result in a loss).

But it doesn’t have to be that way. Once you learn a few tricks of the trade, you can turn a profit from most auctioned houses you buy.

In this episode, Kris Haskins, a multi-millionaire real estate investor who built his empire after losing everything, reveals the misconceptions about auctions, common pitfalls for investors, and how to buy profit-generating houses at auctions.

Here Are The Show Highlights:

  • The biggest misconception about auctions that can wreak financial chaos on your business (10:46)
  • The exact best time to place a bid at an auction to get the best price (13:43)
  • The #1 biggest mistake rookies make after buying a house at an auction that can wipe out all your profits (17:07)
  • How to deal with a tenant trying to rip off the doors of your newly purchased home (18:47)
  • The “Cash for Keys” Method for getting rid of pestering tenants who won’t leave (20:48)
  • Why every bad deal is your fault (24:12)
  • How spending a couple hundred bucks will prevent you from blowing a couple thousand (26:47)

If you have any questions for Mike or want to learn more real estate investing insights, you can send him an email at info@mikewolfmastery.com or visit his website https://MikeWolfMastery.com.

Wish you had sellers coming to you instead of having to chase them down? We put together a free training for you over at http://socialmediablueprint.com/podcast to help you do this. Or if you want to schedule a marketing strategy session with me and my team, book your free session at http://socialmediablueprintpodcast.com/.


Read Full Transcript

The big challenge is this: How are investors like us who are not backed by a billion hedge fund who are investing money from our own pockets? How do we buy, sell, and invest in the properties we believe in, yet still make a profit without risking all of our own money? That is the challenge. In this podcast, we'll give you the answers. My name is Nate Armstrong and welcome to the social media blueprint.

(00:33): Hey guys, Welcome back to the social media blueprint podcast. I've got a really special episode for you this time. I got a chance to interview a good friend and mentor of mine named Chris Haskins. If you haven't met Chris yet, he's an incredible guy. He's a man of God, family, man, and just a downright good person. Good real estate investor. He's actually lost everything he had back about 12 or 13 years ago, and he had to rebuild it from the ground up. And so now his mission in life, and he's been sharing that journey by the way, literally his last 12 years, he shared it step by step on YouTube. And his mission in life is to create financial literacy for people. And he's created a multimillion dollar empire from the ground up just in this just a little over 12 or 13 years. So you can see the whole journey on YouTube, but I just want to give you a chance to get inside of his world and hear some of the things.

(01:23): And I had a few of my private members on from social media blueprint, folks that are part of the family asking him questions as we went through. So you can kind of hear the process of the auction. So we're going to get into the actual auction process cause he buys a lot of properties at auction. We'll get into some of the social media blueprint stuff too, because he's also using social media blueprint to get a bunch of leads coming to him. And then you can just get behind the scenes on how this man thinks and operates as a real estate investor. It's quite incredible. So looking forward to having you on this one. All right, let's cut to it. Hey guys. Welcome. Welcome for anyone just getting signed on. We're going to be streaming live with an excellent man and mentor mr. Chris Haskins in just a moment.

(02:06): We're just getting everything set up and getting everything live streams. Now the cool thing about today is that number one, you got a celebrity on Chris. Number two, that we can actually talk. We can talk back and forth. We can ask live questions. So there's a few different ways that you can do it. Number one way is since for streaming live on Facebook is you can ask us questions in the comments below the Facebook posts or right below this video. I'm going to be refreshing every now and then looking for questions. And then additionally, if you caught us on zoom, which I know that our folks that are part of our community, you probably are with us on zoom. You can actually type questions in there and then I'm going to go through them with mr. Chris Haskins as well. And we're going to get to pick his brain and have a little fun today. So Chris, can you hear us? Okay, man? Hey, there he is the man, the myth, the legends live in person. Good to see you, bro. You too. You too. Hey, thanks for coming on too. I know that this is kind of impromptu and not plan months in advance or anything like that. But I just want to say, I appreciate your time and appreciate you being willing to come on and share with everybody today.

(03:14): You're amazing brother, you doing some amazing things. Thank you.

(03:17): And for anyone that hasn't met you yet, Chris, I'll give a little bit of an intro, but I'd love to hear more from you so that everyone can get to know you a little bit more too. But Chris is a very unique guy. Chris is like the most humble chill guy that I've met in real estate that has built a lot of success, but he didn't do it like wasn't gifted this stuff. Nobody gave him a multimillion dollar real estate empire. Chris went through a similar journey that I went through. Like at one point he had lost it, lost it all and had to build in this guy from the humble ashes has rebuilt everything. And he shared his journey publicly with a lot of people. And now thousands of people across the country call this man mentor. And I call this man mentor too, especially on the top of where I talk a little bit about today. Some of this auction stuff like gifted, man, Chris. Thanks man. Is there anything else that you want to share?

(04:10): I want to, I can't wait. I want to hear more about the ups and downs. I think most people think that real estate is just your buy low, sell high and make all this money. But there's some big losses too, that you can take. So when they will do it, but we'll do a venture to talk about that. And will you do that with me?

(04:26): If you're gonna make me blush on that one,

(04:29): That would be so cool. Thanks for having me. Yeah, that's it brother. You do it one way. Then you learn how to do it the right way, right?

(04:34): That is exactly how it goes, Chris man, the world's opening back up again. We got a little craziness. So I got a few topics that I want to hit with you today and anything that you want to hit too, but the world's opening back up again. We went from this whole like virus lockdown thing to now. There's people, unfortunately Habak is breaking loose in some cities and there's craziness going on. But in between there's still this constant of we can do some real estate deals. We can make you make places better. What are you doing today? What's working for you to make real estate work,

(05:09): Man. I'm big still subject to taking over payments. It's just, I feel like the handle has been really cranked up on that night. Nice. I guess in your world is called owner. I guess you call it owner financing, right? You don't necessarily call it subject to anymore. I don't know.

(05:24): I think everybody knows that language better. It's better on the like common street knowledge so to speak. I don't do the subject to contract myself mostly because of Ron, Ron's mutual mentor. Ron said, well, Hey, you know, in some States they kind of cracked down on this. But I, I still love them. In fact our acquisitionist Kate on our team, she signed one of them two days ago. Wow. Subject to deal. We structured it different than subject two, but it's essentially a subject to

(05:56): Yeah, man. People really helped now, you know, you can call it whatever you want to call it. I guess, I guess the move and strategies to have to, somebody has to make the payment on the underlining loan.

(06:05): Yeah. Yup. How are you acquiring? Like what's the secret like everyone right now that maybe they're working on their first or fifth deal, but they don't know how to gain back the momentum again, because everything got shut down for a while. What would you say to them? What are you doing actively to get that ball rolling again?

(06:24): I'm telling you, well, you got for us, you're going to have to spend a few dollars for advertising. Nina. I want to thank you for that. With this Facebook thing is really unbelievable, but you will have to spend, I know some of us don't want to necessarily invest the time. I always look at it like this. You can either invest time or your money, right? Either you're going to go out there and shake the trees, driving for dollars worth your time. Or are you going to put some money into your advertising? Right. So for me, as I'm getting older, it's always easier to write a check than it is to go out there and spend a lot of my time. So yeah, we're cranking up the will on the online media advertising things to you. And this is really cranking in the leads coming in. It's unreal. It's really, it's really a cool system that you put together. Nate. I appreciate it for that too. Yeah,

(07:04): Yeah. Yeah. Sweet. So a couple of days ago, I don't know, a week ago you had mentioned that you had one lady on the phone from it, did anything like what, what kind of conversations are you having? What's what's real life. No leads are perfect. So I want to know the real life what's happening.

(07:18): Well, just like, I guess in any lead generating business or scenario one would say the majority of the leads are not going to be great. You know? I mean, matter of fact, some of the leads people calling in, they don't know what I'm like, why the hell are we even talking? You don't even, you don't even own it, but it's cool. It's just a business. Right? So yeah, the second lead that came in, I guess last week, the lady and I went to see the house, you'd love me. I sent her my little credibility kid with my family and everybody's warm and fuzzy. And she goes, well, you know, I don't, I just don't know about leaving that payment in my name. She had zero equity. So I talked to her this morning. She didn't didn't sit well on her stomach. So I think she needs to sizzle a little while.

(07:59): And like a lot of homeowners, they're not feeling the pain due to that deferment thing. I think the pain is going to come in and I want to, I think it's our obligation to paint a clear picture for our homeowners, that these payments aren't going away, you know, they're just kind of, I don't know. I don't even know how to describe. I don't want to tell them that they don't have to make it. I mean, I'm trying to figure out, cause this is the first time that I've had so many people that are don't have the payments. They don't necessarily have to make the payments, but they are still cranking.

(08:28): Still adding up. Yeah. Yeah. They are.

(08:31): We're going up against pharma grant, by the way, Nick, you know that Windsor on the grid, what what's happening. He's the one all day to day. Oh, is he really? Yeah.

(08:42): So you're telling us what you're doing now to bring in these deals. So you're paying some media. Are you back in the auction game yet? Are auctions opened again?

(08:52): They are here. Matter of fact, I've got a list of 20 of them here. We just have a virtual assistant. She pulls them every week. We get people to do the skip tracing. And there were either we might even go out to the house while we were going to the house before, but I'm not doing that anymore.

(09:05): No, just the Colby thing. So

(09:07): We get them there. Then we just go to the auction. I'm like, we're going right there. You gotta have your money. You gotta be knowing what you better know what you're doing. I would not say that it's for newbies.

(09:15): Yeah. Yeah. What's that the last one that you bought at the auction? Cause there's a lot of people that are asking about auctions right now. As most of us know, there was a freeze in most cities and States. So like auctions kind of got backlogged in. Now that freezes lifting, it sounds like it lifted in your area. And so now the backlog, you might have a little bit of a search here coming through the last one that you bought at the auction. What's that like, man, like you gotta have cash. You gotta move fast. Like you're bidding against other people. Can you tell us that journey?

(09:47): You do brother? Well, the thing is every state's different. I know I have a business. One of my lenders is in New Mexico. They have to close in two to three days. I can't remember if it's two or three days, but in Virginia, all we have to have is 10% of the purchase price. So if we're buying a 400,000, you got to have 10,000 right then on the side,

(10:08): But 10 GS. Okay.

(10:11): All right. Tell me now that sounds like a lot now, but mean, you know, when I'll start out, I'm like 10,000 Michelle who, I mean, I would never be able to come up with that type of money years ago, you know?

(10:21): Yeah. And so, so you're there, like literally you got your cashier's check of whatever amount you plan on bidding that day, 10% in the last one that you bought. We can talk about that one specifically. What does it work auctioneer? Is it like we see on TV co dollar here, $2 here, like what's going on? How do we do this? Break this down for us.

(10:44): Yeah. So in our area it's so people have the misconception, right? They think they've got this auctioneer. That's opening bid starts at they have a little bit and then it's bid up. People think that that's how it goes. Doesn't work like that.

(10:58): I thought it worked like that. Cause I went to, do you remember when auction.com was doing a lot of stuff, like 2010, 2011. And they would actually like promote bringing a hoard, a ballroom full of people. That was my auction experience. I bought a couple of properties at auction, so there's like 500 people in the room. And like, it was like a catalog action, but what's, what's the real auctions. Like let's talk about these auctions. You're buying properties from.

(11:30): Yeah. Well we're talking about foreclosure auctions and I want to make sure we're clear because I think that word foreclosure gets thrown around. So loosely Nate, when people say, well, I bought a foreclosure when they really bought REO, they don't quite necessarily, you know, it's just, it's used very loosely, but I'm talking about going through the steps bidding right there, there is no opening bid. That's going to get a bed and they're waiting for the bidders to bid it up. The bank has submitted their number to the foreclosing trustee. And that's it. They're going to say, listen, the opening bid is 80,000. Does anybody want a bid? And then they're going to shut up. And then everybody looks around and said he was going to be at first. And then we start bitten and it only goes up. They never lower the bid in Virginia. Now I can't speak for every state, but it just doesn't go down. And you only know what the bed is when the trustee arrives. You can't, there is no knowing what you don't know what the opening bid is until you get there.

(12:26): And in this mystery opening bid and you got, you got Eric Jones asking about this actually too. He said tax deeds for closures, trustee auctions question Mark. But this opening bid kind of seems mysterious. Like who sets that number? Governments, the County, the tax law who sets that bid?

(12:46): That's a good question. You know, it's crazy foreclosures in Virginia. They're just, they're not even regulated. Like there's no one, no government system that's going down and saying, did you do this? You can't ask so much over this. The bank just sends over the trustee, the, the number. And then they go out down and I've seen Nate. I've seen loans, original principal, 80,000. I've seen them as 470,000. I've seen original principal loans at 200,000 open up at 40,000. Who knows where this stuff comes from? That I have no, I haven't figured that one out yet. Okay.

(13:18): So they set this bid on your last property that you bought in. Did you jump in right away? What'd you?

(13:24): No, never. Yeah. Never do that. Always wait till the people start bidding. And then I think about this one, the guy owed about something. Fuck. It was 40 something thousand. I can't quite remember. And then we bought it for 30 something, but yeah. So the opening bid, you don't know till they get there. So they opened a bit up and they say, this is a bit any, do we have any, any, any bitters? You got a start bitten. I usually wait until they say going once going twice then I bet. Yeah.

(13:48): You're the shark that takes at the end, like, Oh, okay. So this one, this particular deal you got other people were bidding on it and it got literally down to the wire and then you throw your hat in.

(14:00): Yeah, well, shit. I met so many of them, I guess the guy did. And then we're going back and forth. And my favorite bit is a dollar over. I know it pisses people off.

(14:14): What was going, what emotions were going through you? Like what were you thinking when you did that?

(14:20): Well, the thing about it is I'm emotionless really? I mean, you know how this thing is nice. I mean, we've been seeing so many of them, their emotions are gone. They down in my big toe.

(14:28): What about when the guy that just got beat by a dollar? What about when he gave you the look?

(14:33): Yeah, he was pissed. Matter of fact, I got an old video tape. You know, I take my camera, people to the steps with me. But yeah, they're a little upset when you win, but shit, man. So they bid, they bid, I bet a dollar over and then they say only bid, we're going to take us a hundred dollars and then they'll say highest increments. We want 500 because they want to speed it up because we'll stay out there, man. You know, 10, 20 minutes bidding up $100 at a time.

(14:56): Did you secure the deal with that one position or did you have to go back and forth a little more?

(15:01): Yeah. We went back and forth for about 15 minutes. I think I got a hundred. He, they changed the increments to a hundred dollars and then we wanted on that. Okay.

(15:09): Okay. So eventually they say, okay, sold you, you get the victory. Yep. And then what happened?

(15:16): Well, don't forget. You can't even bid until you show them that you have your proof of funds, you know? So they don't even, unless you have a cashier's check, you can, they were like they have a sign in form. Yeah. And they're like, well, we need to see your cashier's check before you can sign in and actually bid. So just, I want to make sure your listeners,

(15:33): How do they regulate you? Let's say you brought in a $5,000. Cashier's check. So you can, 10% would be 50,000. How do they regulate you from bitten 60 grand on a property?

(15:43): Well, I've seen that too. So you got somebody that when we bought 50 and then the current bids, 59, some, if they win the bid, they'll go. If the person doesn't have the 10%, they'll go to the next person. They'll redo it. I've seen arguments. Hey man, you didn't that you only got 5,000. What are you doing? Bidding. It can get real crazy up there. Nate, how you doing bitten? You know,

(16:06): You had the 10%, so you want it now what you give the check to somebody like what happened?

(16:12): Yeah. So they trust you that it's typically an attorney. So he's like, ah, let me see. Well, here's the purchase, whatever we agree on the price, give him the $5,000 and you make it out to yourself and then you sign it over to them. And then they give you something called a memorandum of sale, which shows that you did buy it. And you can record that if you want, but you're the new owner, but you're not, you don't have what we call, you know, real estate. You have ownership and you have possession, you know?

(16:39): Yeah.

(16:42): I laugh now, but it's serious. You don't have possession. So you own it, but you can't go over there and go in. Yeah. So tell us about that.

(16:49): This is the good stuff now. Okay. So you won the bid, but you don't get to start like renovation the next day. Like what happens in real life?

(16:56): Heck no. Well, hopefully you don't have a crackhead in the house, like one of mine. I mean, but you got to deal with the tenants. I'm going to have that. I've had several words, the tenant doesn't want to move. So let's say you do have a tenant, right? You got to go introduce yourself. Cause you better get some insurance on it. Cause if it burns down, then you lost your 5,000. You don't have insurance to get insurance on it. That, that day I remember taking one of my coaching clients after we want to be at one time, he goes, well now where do we get the key? I thought there were flooding. Yeah.

(17:28): Well you put down cash. You'd think you'd get the key, but you don't. Okay. And you don't have the deed yet. You have a memorandum of sale. So now you're in this kind of window. This window. How long has that window

(17:42): In Virginia? It's two weeks. 14 days.

(17:44): 14 days at the end of 14. Do you got to bring the rest of the money? Yeah. You got to go the money. Well you

(17:50): Better. We should have it already secured before you bid. But yeah, you've got to bring that remaining money in the foreclosing attorney is going to talk to your attorney or your title company. They're going to interface, do a hut, send it over and make sure it's sweet. And not once do they ask about the house? They don't, the house is irrelevant to them. They don't care what condition it's in.

(18:07): So let's just say from the day you gave 10% to the day of closing. Now, 14 days later, the house does burn or windows are kicked out or whatever. Is that too bad? So sad,

(18:18): Too bad. I had mentioned when I had one, the guy stole the, you know, the aluminum siding. I went to the house when I bought it, it was white. The next day we went to it. It was black.

(18:31): You took the siding with them

(18:33): Starting off bro. Cause you know that aluminum siding they can get, I don't know. Penny's I don't know what they can recycle it for something. Yeah, that was a good one. That was something

(18:42): I was buying a property once. It wasn't auction or foreclosure, but I was buying a property once and I always have a guy, either me or somebody on the team walks the property the day of closing just to make sure it didn't like burn down. And he calls me, Adam was his name, young guy. Adam's like Nate, Nate, I don't want it to do the there's this guy here. And he's ripping out all the doors and I'm like, well, did you talk to him? And he's like, no, man, he's got a big crowbar and he's ripping out the doors and I'm like, well, you know, if he's not violent, could you just ask him what he's doing? So he walks over to me. He's like, Hey, you know, we're buying this house. What are you doing? And then the guy says, I'm the seller and these doors weren't here when I bought it. So I'm taking the doors with me. So I'm like, Adam, let me talk to him. So you put that, put some on the phone. And then I explained to him like, Hey, I'm the buyer like, Hey, you know, if you really want the doors, I can get doors installed for about 200 bucks a pop. So we'll just deduct that from the purchase price and you can keep the doors and, and then Adam calls me about a half hour later. He's like Nate, the guys reinstalling all the doors right now. I'm like, all right, cool, cool. No problem.

(19:49): The money, that one. Right? Money solves a lot of that stuff.

(19:51): Yeah. Yep. But so you, you got your house, the siding ripped off on it. All right.

(19:57): Yeah. So still deciding

(20:00): So that, so then 14 days comes up. You bring the rest of the money there. You now get the deed. Now you're the owner now, how do you get possession? If someone's in the house, how do you get possession? Wow.

(20:13): I already started my eviction process the next day. I think I, it, it started sometimes we try to start on the same day. Cause you were already at the courthouse. You won the bid. You can go right in and do an eviction of all occupants. Now whether the judge will say, if I was the owner at that time, I'll take my chances. He doesn't know he's not going to, I don't know what it's going to do. But nine times out of 10, I don't think the judge is going to say, well, did you own this house? When you filed the paperwork? Hopefully they won't right. Bidding at the courthouse. You can go right in and file your unlawful detainer or your eviction. So you gotta file that as soon as well. If you're squeamish with that, got to file for an eviction or do I just call it the deal with the devil? You got to go talk to the tenant and see if you can get them out of there. Give them a few dollars to move on down the street.

(20:56): Like cash for keys.

(20:58): Same thing. Yeah. Just like you did with those doors man money. I'm like, I go over there. How much money? What do you need? How much do you need to get? You?

(21:06): Got it. Got it. And so on this one that you most recently bought, did you have to do that with the occupants? There was a vacant. Yeah.

(21:12): I had to do that. Kind of meet the deal with the devil,

(21:14): The deal. How much did it cost? Can you share?

(21:18): Yeah, I think it would cost me 900 bucks, either five or I can't remember now either five or 900, whatever it was. I'm happy to pay it. I want my house, you know, the dollar is as long as it's not crazy. If we can help them get them down the street and we have them sign an affidavit saying, yeah,

(21:34): Listen, I blank am accepting.

(21:36): I will be vacating the premises. Not to return it. I do return our agree that it's trespassing, all that stuff.

(21:43): Ah, the legal leaves, the necessary rule in this particular family. Any challenges or was it pretty clean deal? No,

(21:53): It was crackhead. So it was challenged. He took some, you know, took a lot of stuff. He was pooping in the no water. He was pooping in the bucket and throwing it in the backyard. Just nasty thing.

(22:03): No, no terrible night. Oh man.

(22:09): Drugs are terrible, man. Really? I feel bad for people that are going through this tough.

(22:13): Yeah. Yeah. Drugs and alcohol. I have nothing against people that do decide to drink, but it's why I don't drink. It's I watched an uncle basically die in his fifties because of it. And it's had so much potential and, but you get trapped into a cycle and you're not coming out of it.

(22:33): So waste rather sad, man. So yeah, we got him. He was gone and they were going in and that house was a tear. It was so bad. We had to tear it.

(22:40): You had to tear down the house.

(22:42): Oh yeah. It was all to deal with it

(22:45): That bad. Oh wow. I didn't know. You got any projects like that to literally knock this thing down.

(22:52): He was living in there. It was Terry. No. I mean the plumbing didn't even work. I mean the sewer line that not only did it, did it add any water? The sewer lines were broken in. It was just nasty, man.

(23:06): Wow. Okay. So what's going on with that property today? Right?

(23:10): We build new construction. There were building the new house.

(23:14): Wow. Yeah, no, no biggie. Just Nope. For the guy with the big S on his chest to no big deal.

(23:21): They do do the stuff we buy. We pay 7,000 houses gone and put a new window in there and I forgot about it.

(23:28): Sweet. And so now you got a builder, that's building a new house on the slot. Okay. Well, that's going to have to be another day that we interview you again, man, because we want to know how you structure that. Yeah,

(23:39): That's cool. That's some fun stuff, man. I turn them down and put the drawings on and all that stuff, dealing with the, I mean utility companies and pouring footers and all that stuff. You do new construction Nate?

(23:50): I did. I did. I did four brand new houses and everything. The actually I've done six. Two of them went so good with the builder. And then I signed up for four with the same builder and it didn't go as smooth as the first two. We had a lot of complications

(24:08): With him or with the deal. Okay.

(24:10): You know, I don't blame him. In fact, even on the other deals in my life that I've lost money, like yeah. I've made some bad decisions, but ultimately it comes back on me.

(24:19): That's a real winner. We're winners take responsibility for everything

(24:23): You have to, you have to, I lost my, my shirt. My like literally like had to sell the majority of all of our rentals and liquidate everything over really big redevelopments. Yeah. So we didn't tear these things down, but they were Chicago downtown, beautiful, like not beautiful area, but not beautiful properties. They're old rundown duplexes. And we couldn't knock them down because if you knock them down, then you'd have to basically adhere to modern day code with new tools. But as long as we left three walls up, what we were doing is we'd knock out the back wall, dig down in the basement, go up with the thing. And then so redevelopment. So it's almost new construction, but anyways, that's where I got my, my bucket. My boat was kicked inside and out on those. And that's why I'm more squeamish now on getting into big renovation projects. There are people that do them though. Like they do them. They do them really well. I'm just, I just have my butt kicked there. So I prefer the simple deals. Nice and simple. The higher the house, the better.

(25:24): But it's hurting a little bit from sitting on all our problems. Problems.

(25:27): Thank you for calling me out. Yes.

(25:29): I've been there bro. I need that.

(25:32): Hey, you got a couple of questions you might. If I insert them as we kind of go here too. Okay. So Eric is asking, do you check Eric Jones the same? Do you check for tax and utility liens before completion of purchase?

(25:46): Eric? Good question brother. Here's the thing you can do this one of two ways. You can consider yourself a title expert, which I know some people do. Some people would say, listen, I'll do my own title search. And I'll depend on myself to go look up and see what position that alone that's foreclosing in. I just don't think I'm that good. So I paid to have a title search guys. So the title search will tell you hopefully all the problems that you're going to be taking on. And yes, taxes could be one, some things that are unseen could be water, a utility bill that's attached to the property. I've seen that a sore bill could be a few thousand, but the main thing is those taxes. Yes, that could be a problem. So you better get your title work done before you bid, before you bid Eric, don't be buying this house and we don't operate by the hope.

(26:34): I hope there's no taxes. I try to take that word help out of any acquisitions that I do. No hope. I would hope that it's done pay to just pay the, you can. Now the problem is once again, you're going to pay to have a title search for me. I don't know about Nate, but we do every before going to spend 10 grand. Yes, I could lose it, but I don't want to lose it. So I'd rather spend a hundred bucks or 200 to verify that this 10 is going to be good. We may lose the bid, but that just the cost of doing business. Yeah. Do you do a search or you just depend on the previous? Linda did have done their research.

(27:09): No, I'm in your camp with research. I haven't gone to the County auctions and bought like that before, but when I did go to that big mass auction, I, I paid the title company. They pull a title search for like 40 or 50 bucks. You only get it. Yeah. Yup. And then the same thing with the, the cell, like we talked to a lot of sellers because of these Facebook ads in, before we get too far down the rabbit hole, like if I know I'm going to wholesale it as an example, I don't want to like totally engage a buyer unless I know that the deal's going to work. So we'll send the file over to the title company. And they'll just do a quick title search and they'll tell us if there's any extra liens that pop up on it. Nice. Then we know it's safe to show it to our buyers and all that kind of stuff.

(27:56): Well, Eric, I think he's worried about buying something and then something popping up. I think that there was a spirit of his question. Yeah,

(28:02): I agree. He says that when he's done it before he pulls the lists of the sales the day before the auction, and then he runs around town the night before the auction to look at them all

(28:17): Eric, you're a bad man.

(28:20): Chris. You're not, you're not peeking through windows at night. The night before

(28:25): I will go. We definitely, we definitely drive by before we put some money out. We do a drive by, or I have somebody on the phone, but you better, you gotta do that. Three, four days. You got to do your title, search Eric several days before. And it might be four or five.

(28:37): We got mr. O'neill here. Mr. O'neill's asking, can you explain how you do the seller financing process? Okay.

(28:45): Oh yeah, sure. That's that has nothing to do with the foreclosure. But yeah, we, we don't necessarily do owner financing. I don't know about Nate, but I don't want to give up the deed, which you can, I don't want to get the deed up. So we're going to either do a land contract. I'm sorry. Yeah. A land contract or at least option. Mr. O'Neill. So I don't, I don't know if I want to recommend you giving up the deed because unless you're in Texas, because then you have to foreclose. They say in Texas now,

(29:09): Mr. O'neil let us know. He'll smile. Let us know where you're at, man. Then we can go a little deeper on that one in, I totally agree with Chris. Like if we're going to do any kind of terms, so to speak with a rent to own buyer, we try to keep it as just a paper contract, not a D transfer. I did one. I shared this story with Chris week or so ago that I've had two notes that could have been called due. I had one actually called do and then another one potentially, because I sold it by giving away the deed on the seller finance contract. And my banker

(29:42): Reached out to me saying, Hey, we don't like that. So fortunately, a few months later that guy ended up leaving and I legally got the deed back, but I wouldn't do that again. Not a him. And mr. O'neil says he's in Massachusetts. Thank you. I don't know Massachusetts. I don't know when they might know better. I don't think they have a lease option thing. The Texas is the only state that I know of. Yeah, Texas, for whatever reason. I don't know the history, but they didn't like that red zone deal. And they went after it. So Minto Neal don't do. And I said, no, I don't wanna say don't do it. But I guess if Nate, Nate is the expert, you know, so if he's holding onto the dude I'm holding onto the dude, you know, I guess, think about doing it. Think about that.

(30:22): At least you got one here from Eric. Eric says, how do you convert a quick claim deed received from the auction to a warranty deed prior to selling it to a new buyer. Wow, that's a good one. So they quit claim the deed to you. That's nasty Danny saying from an auction, how do you convert a quick claim deed receive from an auction to a warranty deed and then sell it to a new buyer. You're going to have to, yeah, you're going to have to do a whole new closing and you're going to have to beat it into that brother. You're going to have to do a full search. 62 years search. You can do it though to sell it from yourself to yourself. No would sell it to another entity you own or something like that. But you're going to pay recording fees. You're going to have to pay.

(31:05): I don't know where the fees are in Nate's town. Blake's shit. You're going to pay a percent here. If it's a hundred thousand dollars, you want to pay 800 bucks to record all that crap. There you go. And you have your D though, Eric, let us know if that helps you, man. If that makes sense, sell it to yourself, or you're going to have to do that. So from yourself to the entity or create a new entity that will detect your deep beautiful, you got Paul Cusack saying, thank you for doing this. This has been very informative. And I know very little about foreclosure. And he says, can you talk a little bit about the relationship between what the seller owes and the purchase price are they related? Who was that? This is Patrick Patrick Cusick. Hey Patrick, what's up? Excellent question. I wish there was some relationship.

(31:47): You know, I, I try to figure this stuff out when I'm looking at what we call it as the original principle, that's who what's going to foreclosure. Right? So the original principle. So the original principle, let's say it's 150,000. You can share screen. If you want, feel free. You, you got should have full control. If not tell me and I'll make sure that you get it. So I'm gonna pull up my little list that week. I'll pull up my current lift. So you got to see what it looks like. What we'd go through. This is cool stuff. You guys are getting the price of admission today. Yeah. Yeah. We got another one coming up after this. Wayne is going to ask us about reverse mortgages.

(32:20): Okay. Hey guys. Hope you enjoyed part one of this episode is just too good to limit to one show. Join us next week to hear the rest.

(32:37): This is thepodcastfactory.com.

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