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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Just a sign of an overwrought seller's market.. Posted by Ward-CA- on May 03, 2003 at 9:44 AM In Reply to: Why am I outbid everytime? posted by 2nd Fred on May 02, 2003 at 11:09 PM : Hi Ward, : One of the things I've been doing is keeping track of the properties that go to sale. I check the sold price with what I've been calculating I would have bid and in almost every case the price that was paid was far more. What am I doing wrong? I assume that I should be in the same ball park. : Here's what I'm doing: : Get my comps and try to come up with a FMV that I would sell the house for. Subtract 20% profit for my investment. Subtract other costs such as tax payments for the next 6 months, commissions, repairs, etc. After all the calculations, this is the number I would use for my maximum bid. Does this sound about right? : Thanks, : Fred =•=•=•=•=•=•=•=•=•=•= Fred, On just about every phone call I have with my foreclosure trainees we talk about the insane overbidding going on at the local foreclosure auctions. At first I thought it just affected San Diego and Orange counties. Now I’ve come to the conclusion it goes on anywhere where there’s a very active seller’s market—regardless of even the state you’re in. I’ve had exactly the same conversation with trainees as far away as Florida and Massachusetts! So you have to understand that you’re doing nothing wrong! I figure my profit differently than you. Instead of figuring it as 20% of the FMV (fair market value) of the property I figure my profit as a 20% return on our cash investment (ROI). We then expense out all other items and what’s left over is the maximum amount we can bid up to. To handle the changed circumstances with yuppie overbidding at the foreclosure auctions we have turned to doing JBB’s (junior bene buyouts) and pre-sale equity buyouts. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : One of the things I've been doing is keeping track of the properties that go to sale. I check the sold price with what I've been calculating I would have bid and in almost every case the price that was paid was far more. What am I doing wrong? I assume that I should be in the same ball park. : : Here's what I'm doing: : : Get my comps and try to come up with a FMV that I would sell the house for. Subtract 20% profit for my investment. Subtract other costs such as tax payments for the next 6 months, commissions, repairs, etc. After all the calculations, this is the number I would use for my maximum bid. Does this sound about right? : : Thanks, : : Fred : =•=•=•=•=•=•=•=•=•=•= : Fred, : On just about every phone call I have with my foreclosure trainees we talk about the insane overbidding going on at the local foreclosure auctions. At first I thought it just affected San Diego and Orange counties. Now I’ve come to the conclusion it goes on anywhere where there’s a very active seller’s market—regardless of even the state you’re in. I’ve had exactly the same conversation with trainees as far away as Florida and Massachusetts! : So you have to understand that you’re doing nothing wrong! : I figure my profit differently than you. Instead of figuring it as 20% of the FMV (fair market value) of the property I figure my profit as a 20% return on our cash investment (ROI). We then expense out all other items and what’s left over is the maximum amount we can bid up to. : To handle the changed circumstances with yuppie overbidding at the foreclosure auctions we have turned to doing JBB’s (junior bene buyouts) and pre-sale equity buyouts. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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