I am a preapproved buyer upto 400000 USD and looking to buy our family a home in bay area [San Jose, Sunnyvale, Santa Clara, Cupertino, Fremont, Milpitas]?via auction on the courthouse steps. I have 10% downpayment as cash which is 40k. Just wondering how to go about partnering with someone who is regular at these auctions in buying the properties.
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Start by just hanging out at the steps and see who actually buys stuff. There are usually just a couple of buyers that buy the majority of properties. You may also try asking the auctioneer as he’ll know who the regulars are. Then approach those buyers and discuss terms.
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One note of caution: be really careful about the terms you agree to - and understand it has to be a fair balance of risk/reward. And if you agree to take on some risk for more reward, don’t expect these guys to cut you any slack if you make a mistake. Imagine the following:
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- they buy a house for which you agree to put up $40k (limiting their risk if you fail to perform)
- you can’t get financing because the home needs repairs you didn’t know about or there is a title problem no one saw
- they keep your $40k
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If you’re not prepared to take that risk they may still be willing to sell you a property at a discount, but not likely at as big of a discount as they will be taking the bulk of the risk. Plus this market is still strong enough that they could sell the property at current market value so why bother?