6.29.09
Spent 4 hours yesterday in Reno, NV at the Real Estate Disposition Company (REDC) Auction for properties going to auction in the Reno area.

REDC is a company that specializes in real estate auction marketing throughout the country. Basically, banks/lenders have an agreement with REDC to market and auction their properties for sale. REDC comes into a community with heavy advertising prior to the Auction. Investors have an opportunity to view the properties and prepare for the big day of the Auction. Goal of REDC is to get through the list of properties on auction day as quickly as possible and sell every property!

One week ago I found a property in my area of Lake Tahoe that was going to be part of the Reno Auction on 6.28.09. I only invest in this one area of Lake Tahoe and believe I have extensive knowledge about any unit going to market---what it should or should not sell for given current market and unit/building conditions.

Leading up to the Auction I was able to get in and take a look at the unit and spend time at the Recorder's Office looking for any surprises. Everything looked good and I was able to place a number value on the property.

Keep in mind my "value" as an investor is much different than somebody looking for a new home. Many investors look to buy with value or buy something they can add value to so they can sell it for a profit. Often, the goal is to buy low and sell higher as with any other investment. Right now it is tough to predict what is going to happen with the real estate market which makes placing a value on a property very difficult. I think everybody will agree we will continue to see drops in real estate values over the next 6-12 months. Again, establishing "value" for somebody buying and moving into a home for the next 10 years is different than an investor looking to buy it and sell in the next 3 months.

Investors need to buy with a cushion that factors in carry costs associated with the unit until it is sold/rented which include remodel/clean up costs, real estate market drops and surprise costs.

More about my REDC Auction Experience in future posts-
Days leading up to the REDC Auction- gathering info
Day of Auction- how to prepare and what to expect
Post Auction Summary- Auction savings not as good as you would think.

More Blogs on REDC Auction
REDC Results and My Opinions
Day of REDC Auction in Reno
Days Leading to REDC Auction
REDC Foreclosure Auction