Strategies for auction


#1

Hi Sean,
I have been going to auctions and bringing with me the bank cashier’s checks in preparation for getting a particular targeted $1M+ home in auction that I have been tracking. But each time I have showed up at the courthouse steps, I find out that my targeted property auction has been postponed. I know this happens a lot. What my concern is though, is that it definitely costs me money to have to liquify my accounts and bring cashiers checks in that amount, only to have to go back to my bank that afternoon (after the auction postponement), and redeposit the funds back. Having the funds out for even 1-day costs me interest loss and hassle, each and every time. Wondering if there’s any strategy you have encountered for NOT having to carry that much in cashier’s checks to an auction and/or finding out early whether or not a particular property I am after will have it’s auction postponed (yet again)?? I have no problem bringing the funds, it’s the constant postponements on this property that are slowly eating at me. Also, I tried calling the Trustee to see if I could get “bank pre-qualified”, and verify that I have the funds so I didn’t have to bring all the checks to the auction, but they said no. Any other ideas? Thanks. ps-By the way, your postings on this site are amazing and a great resource!


#2

Ask your bank if they will give you secured line of credit against the assets. Then, instead of liquifying your assets at eash sale, just draw a check on the line. Then if the sale postpones return the check and have them mark it “Not used for purpose intended”. If you take the check and return it on the same day there should be no interest charge for taking the check. The bank may want a transaction fee for writing the check, but you may get them to waive this if you have substantial business with them. Hope that helps.