Investors
Self Directed Individual Retirement Account (IRA)
According to the commonly accepted view in the investment industry, a “Self-Directed” account is one that allows the account holder to choose their own investments. In particular, a Self Directed IRA can accommodate real estate related investments (in addition to a long list of other asset types).
Why Invest in a Self Directed IRA?
ALL IRAs can be self directed. You just have to move your Traditional, Roth, or SEP IRA to a “Custodian” account that can handle alternative transactions.
An excellent reference (from the perspective of a financial adviser) for Self Directed IRA’s is Michael McNamara of BRENTWOOD Equity Advisors, LLC.
Real Estate Auctions
Past Auctions - Statistics on Sold Properties
Most auction houses work with a specific lender, and they usually offer an incentive to the public to use that lender to obtain a loan. However, you may also use your own lender, as long as you have a pre-qualification letter from them.
You may also be required to pay a 5% auction charge that is added to the final bid. This additional charge helps to defray the overhead cost of the auction.
You may use a real estate broker to assist you, and you will not pay a fee to your broker. It is the seller (the bank) who pays that fee.
You will be able to view the homes before the auction, and you should do a comparative market analysis to know the fair market value of homes that have sold recently in the neighborhood. (This is the information a broker can help you obtain, and it is very important to know that number so you can set an upper limit on your bid).