I am an agent for some investors who want to buy houses at the auctions. How do the investors protect themselves with all the cashiers checks that are needed?I will usually be the one at the auctions?
The most common solution is to make the check out to the trustee for the particular property being bid on. This works well for a single property, but quickly becomes burdensome if there are multiple properties to be bid on.
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I have used an employee dishonesty insurance policy in the past to cover folks bidding for me. As I recall the person does not necessarily have to be a W2 “employee”, rather just someone you’ve hired even on a contract basis. I remember the cost being reasonable for a couple million of coverage, but the deductible was fairly high, perhaps $50k. Still a $50k loss is a lot more manageable than a million or two.