It was an interesting morning, and maybe there is some general market information to be gleaned from the experience. I spent a couple of hours at the Trustee’s Deed auction on the County Courthouse steps this morning. I really went to see how the big foreclosures on Renen & Bardis Foothills at Wingfield would play out – there were 3 scheduled, but all were postponed. In fact, of the 100 or so sales scheduled today, over 80% were withdrawn or postponed. Are the banks really looking seriously at restructuring these loans? Another one of the postponements today was 4045 Old Highway US 395. profiled in The $5,270,503.38 NOS back in October – pure coincidence.
I wrote about The Investors Club back in September, and they were out in force. It was pretty freaky to be lurking among these people that I only know through public records. It really IS a club. They all know each other, joke around when one of them makes a purchase, never bid on a property if someone else in the club is making a move (there is plenty of road kill for everyone), and they all seem to have inside information on what the actual first bid price is going to be (as opposed to the amount owning published in the NOS). Some of the properties that actually made it to auction today were for the full amount of the outstanding debt, and all of those went back to the bank. There were several where the starting price was reduced 30% or more – all back to the bank. But while I was there, the Club moved in on 2 properties:
3850 Brant – the outstanding debt was about $183,000, the bank’s initial bid was $51,100, and it was grabbed up at $51,101. The buyer had never seen the property, but knew the area well and had looked at aerial photos.
6300 Potomac – the outstanding debt was about $230,000, and it was snapped up for $130,000.01, one red cent over the bank’s initial offering. It was purchased 11/15/05 for $270,000, and there was a previous sale in June 03 for $153,000.
OK, both these properties are below the standards of the typical RRB reader. I think both were bought with rental in mind, not flipping. But here is some indication of where the market bottom may be, based on what the investors are willing to spend. And there are some deals here if you are cashed up and ready.
It was all a bit too depressing. These local yahoos with with the worst comb-overs, rugs and dye jobs I have in seen in one place were stealing Reno real estate. They are your future landlords or the sellers you will be dealing with. So I went over to the new Brickhouse Bakery at the West Street Market for a cuppa’ Joe and a brownie. RIGHTOUS! Give them a try.
November totals: 254 TDs, 365 NOSs. 514 NODs. It was a short month. December is picking up steam, though I wonder if the postponed Trustee’s Sales I saw will start skewing the data. Any thoughts?