Auction

melbourne's auction market is about to go through one of the biggest changes that we've seen from october vendors are required to publicly advertise the price seven days before when i first heard about this i thought it sounded pretty straightforward if the reserves 1.1 And it's advertised at 1.1.

Buyers know exactly where they land.

But it's not that simple.

that I think

buyers really need to understand.

And firstly, the vendor can lower their reserve once the auction starts.

So once the auction takes place and they've called for bids, then it goes back to the normal auction rules as far as what they've announced so far, which essentially means that they're able to increase or decrease the reserve as the auction is going.

And that is very important.

But that's one way you could try and go about a deal is to buy the note, put it under contract, then to go to the borrower, try to get a deed in lieu.

Another way is to buy them at auction.

They come up on different auction sites, auctions.com, things like that.

And then you're bidding against others.

The problem when you buy it at an auction is you have to put down 10% the day you win and the other 90% within 30 days.

And I have for over a decade specialized in dealing with foreclosures, estates, and even messy title situations tied to real estate.

And so both of us being investors, we're going to be wearing our investor hat today talking with you about today's subject but this is Louisiana real estate talks podcast where we talk about what's happening across Louisiana and more importantly what it means for people actually buying selling and investing real estate throughout the state and today we're talking about land a lot of land so let's go ahead and jump right into it so Steve let's start with the part that everyone's going to see that headline of you know the minimum bid being four thousand dollars that's what's going to get everyone's attention but it's not necessarily just, I don't know, a normal auction, you could say.

So what stands out to you about this, the Nora lot auction that's happening actually very soon, and we'll talk about the details here soon, but what stands out to you about it?

Yeah, I mean, 4K lots are exciting, but it definitely, as you said, you definitely need to be aware of what you're buying because it does come with guidelines and you do need to build on the property within 18 months.

They have a right to reverse or rescind, there's a word on that, there's a right that they have to be able to take it back if you don't build within 18 months.

You need to build it, show an occupant certificate and they can waive that they have against you but so you can't just land bank like you know i know a lot of people that do land bank and they would buy a cheap lot but that isn't what's going on here so if you're going to bid on this you need to be aware of what you're going to build you know 18 months is not a long time if you know like it's it's a decent amount of time but like you want to have your plans in order and if you're going to spend money on it you need to know what you want to do so i definitely don't just don't just think of it as cheap land

Yeah.

And we're going to get into some of the very specifics of the strings that are attached to this auction.

Dietl is an art forwarder.

His company transports priceless paintings to auctions and galleries in custom-made crates.

He has even transported the Salvator Mundi, he says.

In recent years, he's been delivering ever more artworks, not to museums, but to extremely secure warehouses known as freeports.

Your walkaway number exists to protect you from yourself.

And I say that to clients before going into the auction.

I think that is very, very important.

The second thing that you want to do is you want to find out a little bit more information about the vendor.

So figure out why they're selling.

And I want to try to get as much information as possible during this phase because it's really going to help if we're going to structure the offer with us going first or do we run to auction or is there a better process? You need to understand their circumstances and their likelihood of actually accepting an offer.

So what I want to figure out, why are they selling? Have they already bought? Are they moving interstate? Was this an investment property? Is it a deceased estate? Is there a divorce happening? Are they downsizing? Are they upsizing? How quickly do they need to move out of the home? Like, do they need us to release the deposit early so that they can go and buy something? All of these things and all of this information about the vendor situation tells you more about how you can structure the offer.

And it's a lot more beneficial to me than what the advertised price might be, whatever the agent tells me the home is potentially worth.

Yeah, I'm not a- I'm not aware of Mantle putting a circle on his I in Mickey.

And it, it's funny a- and coincidental that you bring that issue up, because there's a card, uh, currently up for auction at Goldin Auctions.

It's a 1952 Bowman Mantle, which according to the owner of the card, the consignor, was signed by Mantle, uh, in 1952, which would make it, if legitimate, would make it, you know, a card that's worth over $100,000 easy, and it's up for auction now.

Well, what happened w- and PSA said that it's authentic.

Just let everybody know that Sam and I are a bit rubbish.

As for Pistonheads auctions, we've not really got anything coming up at the moment that would fit the bill, mostly because we're doing this so far in advance that anything that would have been coming up for auction by the time we record this would have already sold.

There's some nice stuff out of that era, though.

Blimey, look at those.

So September 1st, farm auction, Cambridge City, Indiana, which incidentally was right where the flood hit a couple weeks ago.

So you might think, well, maybe auction prices would be weaker there.

Well, no, no. September 1st, my friends at Schrader Real Estate and Auction had a great farm retirement sale for a guy's name was Keith Bray.

My apologies if I mispronounced that, but he had beautiful equipment.

And so he had a 2013 model John Deere 8235R, went for $225,000 and 458 hours.