Translate
Chinese (Simplified)EnglishFrenchGermanHebrewItalianJapaneseRussianSpanish
Client Testimonial
"Thank you for your patience and professionalism in representing us on the purchase of our new home. You and your team were highly effective in making this transaction as easy as possible.

Your knowledge of real estate and management together is why we have chosen B.I.F Realty and Investments above and beyond any other management companies. The combination of buying and finding the right tenant on top of managing everything makes it such a pleasure to purchase an investment property. As we have in the past we will continue to refer you to our friends."


- Steve R.

postheadericon The Process

The Foreclosure Auction Process

Here’s what you need to know about getting a great home or investment in the Las Vegas metropolitan area.

  • Before the Auction
    • Inspect in the Properties
    • Register for the Auction
    • Review Documents
  • During the Auction
    • Bidding
    • What to Expect at the Auction?
  • After the Auction
    • Upgrades to the Property
    • Management of the Property
    • Refinancing the Property
    • Sale of the Property
    • Profit Upon Sale
    • Tax Implications

Before the Auction

Once you have reviewed the website, talked with one of our Associates, and understand the excellent opportunities that are available by purchasing a home at the foreclosure auction, we will collect an up front retainer fee of $2500.  This is for our consulting services.

We will then go into an in-depth analysis of the types of home, or homes, you are looking for.  What is the price range?  What is the style of home you want (are you looking for a single family residence, a 4-plex, apartments, etc.).  We will then put together your Purchase Profile.

If you are going to come to town for the auction, we will have you fly into town the day before the auction.  At 6 pm that night we will have a list of properties that are going up for sale the next day.   We will analyze those properties and get with you that night to present a targeted list of properties that we should bid on the next day.

Inspect the Properties

When buying properties on the courthouse steps, it is important to understand that these properties are sold ‘as is’.  One of the most critical parts of our process, and one of the aspects that makes us such a valued partners, is that after analyzing the properties the night prior, at 5AM we will pick you up at the hotel and we will physically visit the properties that you plan to bid on.  We will take photos of the properties and do any and all inspections possible that morning so that we have a really solid idea of what the property is all about prior to any bids taking place.  The auction morning process will be:

  • Visit the homes with us on site starting at 5AM in the morning
  • Complete an inspection of the home.
  • You should do your homework and prepare a list of what you want to look at
  • Inspect the home as thoroughly as possible.
  • See helpful tips on inspecting the home prior to auction (click above video)

Some suggestions:

  • Talk to homeowners in the neighborhood and local businesses, schools and any other regular destinations
  • get as good a feel as you can for what your life would be like in the new neighborhood (if buying for yourself)

Simple inspection resources can be found at;

  • Sample inspection checklist

All high bids are subject to:

  • A minimum price set by the property seller
  • The high bid is a final sale (a bidding contract) on the purchase of the property
  • All property sales are final at auction

All sales at the auction are “as-is and where is”:

  • Homes are sold “as-is” with no opportunities for further inspection
  • The purchase provides no contingencies
  • You can review all available documents on the individual property that we get before the auction

Register

When you are ready to begin bidding, the next step is to register for the auction. Registration is free and there is no obligation to buy or bid.  You must agree to auction terms and conditions and property disclosures for each property you plan to bid.  You must send us a $2500 check made payable to B.I.F Realty and Investments (this will insure your registration).

Review Documents

If you plan on bidding on a property at auction. We recommend that you read the Auction Terms and Conditions thoroughly before coming to the auction.  If you are the highest bidder on a home, you will be required to endorse the cashier’s check to the auction house and get a receipt. We get Title Insurance for your protection.  Remember:  all properties are sold on a “as is” basis.

Return to Top

During the Auction

Bidding

Most properties have a silent reserve price which means the seller has set an unpublished minimum selling price.  However, the seller has the right to accept or reject all bids at the seller’s sole discretion. The starting bid is not the reserve price.

In person, at the Auction

Once you are registered with us, on auction day simply show up at the event at 10AM. There is no order that the homes will be auctioned. You will be requested to show;

  • A cashier’s check in the amount of the purchase price
  • A valid photo ID

A 6% buyer’s premium will be added to any final High Bid to determine the total purchase price.  A minimum buyer’s premium of $2,500 will be added or properties with a High Bid of less than $50,000.  For example, if you are the high bid at $300,000, your actual purchase price will be $315,000 ($300,000 bid plus $15,000 payer’s premium).

Please take into account this buyer’s premium as you decide how much to bid on a home at auction.  The buyer’s premium is not a real estate commission; it is the fee that we charge bidders for bringing them to auction.

On-site Assistance

Our team has assistants working in the auction to help you on your behalf. The assistants are available to answer questions about the auction and bidding process.  If you are a high bidder you will be ushered to the closing area to execute the required purchase contract, sign over your cashier’s check and write a personal check for the balance of the required Money, which is 6% of the total purchase price.

Online Bidding

For those who cannot attend the auction in person (although we strongly encourage you to attend if possible), we offer a connection using your computer and telephone to place bids.

  • We will email to your computer a list that allows you to see properties that come up for bid.
  • Dial into a teleconference number to place bids using your telephone keypad

If you are going to participate in the auction via our international telephone, you have to wire transfer funds to the Title Company.  We will walk you through this process.

Once registered, you will be sent an e-mail that will contain a list of all properties to be sold on auction day, and a teleconference number to dial unto during the auction. The list should be forwarded at least one 3 or 4 hours prior to the auction, and allows you to view the properties on your computer as they come up for bid. However, sellers have the right to remove properties from the auction at anytime.

Absentee Bids

If you cannot attend the auction in person or participate via the live telephone conference, Proxy Offers are accepted on auction properties at any time. A Proxy Offer is an offer made in writing, submitted to us prior to auction day. All Proxy Offers are held until auction day and compete with bids received on-site and online on the day of the auction. To submit a Proxy Offer prior to the auction please print out the Purchase Agreement found on the property details page and use this as a guide. The amount of your Proxy Offer will be deemed to include the 6% buyer’s premium; the actual bid entered on behalf of a Proxy Bidder on the day of the auction will equal the total amount of the Proxy Offer less the portion of the Proxy Offer constituting the 6% buyer’s premium. A minimum buyer’s premium of $2,500 will be added to all properties less than $50,000. All offers must reflect no contingencies of any kind. All sales are “as is” without warranties or contingencies. All Proxy Offers must include all funds, cashier’s check or wire and a check in the amount of the Earnest Deposit. Proxy Offers are submitted to our agents by sending an e-mail to Info@BuyingInForeclosureAuction.com. If a Proxy Offer is the high bid on auction day, you will be notified by our agents within 24 hours.

What to Expect at the Auction

Generally, homes or investment properties sell out at auction. Between 30 to 40 properties per hour, so the event will move rapidly. The length of each auction depends on how many properties are in the auction on an auction day.

Because the auction moves quickly, it is a bidder’s responsibility to know the auction bidding order. You should expect that other people may bid on the same property as you, so be an informed bidder and know how much you want to spend. You should also thoroughly review all property disclosure documents. If you are the high bidder on a property, you will be ushered to the closing area to sign the Purchase Contract.

What to Bring to the Auction

In order to have a smooth property buying process, you will need to bring the following documents to the auction:

  • Cashiers Check in the amount of your bid, made payable to yourself (this will be endorsed over to the title company upon successful bidding)
  • Valid ID (Drivers License or Passport)
  • Any necessary corporate/partnership or trust documents
  • No cash or credit cards are accepted to bid

 

Return to Top

After the Auction

You will sign all final documentation for our management and profit participation.  We will inspect the property you have purchased the day before to see its condition and will take pictures so we have some evidence of the condition of the property.

Upgrades to the Property

Many of the properties need a partial or a complete paint job, some of them have some other deferred maintenance which we will provide to you 3 estimates of which we will accept the lowest estimate.  You will have to pay all deferred maintenance or improvements in addition to the purchase price.  We will supervise on your behalf and will not release the second half of the payment until we received release of lien and verified that all work has been completed. We charge 10% of the actual bid for our supervision and responsibility. This is half of what a regular contractor would charge.

Management of the Property

We take our stewardship of your property seriously, safeguarding your investment with an extraordinary level of care and expertise.  We will advertise your property for rent and show the property to potential tenants. We will make sure that a potential tenant will have an average credit history. If we found a tenant with less than average credit history we will disclose to you his/hers credit history and will request from you approval in writing to rent to any sub standard tenant. You do not have to accept any tenant which is a sub standard. We will charge one month rent as a finder fee for locating this tenant.

B.I.F provides a comprehensive range of services in buyers and sellers representation and property management services that include:

  • Representing both buyers and sellers in the purchase and sale of real estate
  • Custom fitting income properties with investors needs and finances
  • Planning and construction of property improvements
  • Tenant placement and tenant/landlord relations
  • Markets analysis, lease administration and negotiations
  • Income and expense accounting and monitoring
  • Supervision of property maintenance
  • Property inspections
  • Evictions and collection accounts setup, reports and payment detail

Refinancing of the Property

We will help you refinance this property in your name with a new mortgage which will return to you a minimum of 70% of your investment and probably 100% or more. We will charge you 2% of the refinancing amount for this service and we will deliver to you the most competitive interest rate the lender offers.

Sale of the Property

We will not decide for you when to sell the property, it is always you decision and you’re welcome to keep your property for many years to come. Our profit participation will be secured by a second trust deed on the property which you will sign upon the purchase of the property. We recommend keeping all properties for a minimum of 3 years. We will list your property for the customary rate (currently at 6%) and sell it to the highest bidder when you are ready to sell.

Profit Upon a Sale

We will participate in the profit upon a sale of the property and will take 25% of the profit after you receive all of your money back plus 3% annual interest on your investment. Profit will be calculated taking the purchase price at the auction including all fees and expenses including any expenses of improving the property and all expenses of selling the property. All fees and expenses will be deducted from the sale price to determine the profit. We recommend selling the house only after 3 years of ownership, not before.

Tax Implications

Our CPA will prepare your tax return (if you are a foreigner in the United States) and will send you all your tax information in order to maximize your tax deductions for the year.

 

Return to Top

Search MLS Listings
Request Information

Your Name (required)

Your Email (required)

How Can We Help?