There's been a lot of foreclosure talk lately and we wanted to give a snapshot of our vantage point.
Yesterday, our team went downtown to one of the massive foreclosure auctions in LA. 7,000 people were there to bid on 600 properties throughout California. Some general impressions...
First, their taste in music is inspiring. Neil Diamond's 'Coming to America' kicked off the party and conjured a strong sense of the American dream - and the certainty that in mere moments through the riches of real estate equity, we would all soon be transformed into something more than we were upon arrival.
Of these 600 properties - maybe 25 were in LA. Of these 25, about 3 were in a neighborhood that you might consider living in. might consider. Trust us, the viable options were not abundant.
The bid prices were not fire-sale savings. When you're paying $375,000 for a $400,000 loft and then you have to pay auction fees, it's not worth it. Because, on top of everything else, odds are that 90% of the time you're not going to get the property you want.
We spent three hours strategizing, stretching and preparing for one specific property we wanted to buy - a 4-plex in Koreatown. When it finally came up on the list for auction, they announced that it had been 'removed from the list' - and then they moved on. We sat there with our bidding paddle clenched in our fist, distraught, knowing that we would never even raise it. All of our labor was for naught.
Trust us, we're able to find better values on the public market (where one can still find short-sales and foreclosures and not have to deal with the uncertainty and the risk of an auction). At the auction, there are no protective contingencies, no inspections, only adrenaline bidding. For us, we will not be buying in this medium. This is not the place you'll your next home - or a 4plex in K-Town.
for what it's worth...
the LA home
