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David's Macro Blog

Analysis and commentary on business, economics, real estate, financial markets, and other fun topics


Tag: Jim Klinge

Purchasing homes at the trustee sale auction has become increasingly popular throughout 2009 as the real estate markets have firmed. 

When there is a big enough discount in the purchase price of a home at the auction vs. its full retail price on MLS, real estate investors will buy the home to either flip (resale) or hold for greater appreciation down the road.

Jim Klinge (aka “Jim the Realtor”) of San Diego interviews Adam Rappoport (aka “SD Realtor”), a realtor and active flipper of trustee sale homes.  This is a very frank and honest discussion about the risks and process of investing in trustee sale homes.

Adam Rappoport Interview – Part 1 of 3

Adam Rappoport Interview – Part 2 of 3

Adam Rappoport Interview – Part 3 of 3

There is a lot of mystery and uncertainty about buying a home at the trustee sale: there’s no inspection period, deep pocketed buyers pay all cash to buy the property “as is” and “where is”.

The interview really gets into some insightful and insider details in parts 2 and 3 so make sure to watch all of the videos.

What surprised me the most was how the margins have shrunk this year. Notice Adam mentioned that his target margin was 20% per deal but now it’s down to 15% and the current deal was at 9%.

Another interesting thing is that every property he’s resold this year has had multiple offers because his group priced the home right.

What do you think about this interview? Please comment below.

During our last visit in Scottsdale, Amber and I toured 3 houses purchased at the Maricopa County trustee sale auction in October 2009.

You can watch all 3 videos below.

Related Posts:

Every wonder what happens when a tenant occupied house is foreclosed?

Listen in as a fly-on-the-wall as my favorite real estate agent (Jim the Realtor) approaches the tenant of a house just foreclosed 2 days prior.

How would you handle this situation as the bank’s realtor who needs to have the place vacated, cleaned, and prepared to be sold as a bank REO?

Watch the video below as Jim Klinge records his initial conversation with the current (and soon to be former) resident.

Please comment below with your thoughts.

True investors want to purchase an asset at a discount to today’s fair market value. In the past, this was a big challenge for real estate investors. However, now that we are in a real estate recession, investors can finally purchase houses for significantly less than “today’s retail price.” One method to do this is at the court house steps through a trustee sale auction.

Watch the video below from my favorite realtor, Jim Klinge (aka Jim the Realtor).

Apparently Jon Mann, San Diego real estate professional investor, purchased this home yesterday. As Jim says Jon has been “on fire” buying 20 to 40 homes a month “just making a killing.”

Note: We’re doing something similar in the Phoenix market with our friends. It’s (finally) an exciting time to invest in real estate!

Should everyone own a home?

If they build it, will they come?

Do low interest rates and easy loan qualification help everyone?

Is a home your most valuable asset?

Is California real estate such a prime asset that it will never go down in price?

“No” to all of the above.

Shocking news:

Brand new homes being demolished (see video) in Victorville, California because the lender doesn’t want to own the homes.  They’d rather just own the raw land which includes the demo cost.

Did anyone see this coming during the real estate bubble years in 2005?