Access Wealth Strategies

A few weeks ago in March I toured a house in Mesa, AZ (Near Phoenix) which was being rehabbed and flipped by Ivy Coppo, a realtor with Trilogy Investments and Real Estate. Ivy is an expert in managing flips for investors who purchase properties at the Maricopa County (Phoenix, Arizona area) trustee sale auction.

This 3 bedroom / 2 bath house in Mesa is for Ivy’s own portfolio.  Check out the 3-part video series below for the before vs. after tours of Ivy’s flip and my interview with her where she reveals her numbers and tips for successful flips.

Ivy’s Flip in Mesa, AZ – Part 1 (Before)

I arrived a couple of days after Ivy won the bid on this house at the trustee sale auction – the crew had already been hard at work.

Ivy’s Flip in Mesa, AZ – Part 2 (After)

I toured the house with Ivy after the rehab work was completed, just a short week later.

Ivy’s Flip in Mesa, AZ – Part 3 (Interview)

Ivy answered my questions about flipping houses:

• How many properties she flipped in 2009
• What kind of properties were flipped, price ranges, locations
• Her typical timeline for a flip
• What percentage of REO / short sale properties vs. flipper resales are on the market?
• What kind of buyers are there for these flipped properties?
• Her best vs. worst cases for a flip
• How she increases the chance of a successful closing
• What’s the typical return for her flip?
• What about the risks? e.g. tenants/owner occupied properties, hard money loan costs, due diligence
• Her advice to newbies

Please leave a comment and let us know how you liked this post and what you would like to see in future posts.

If you liked these videos, you might also be interested in:

Interview with John Ray, largest buyer of homes at the Phoenix trustee sale auction.

Phoenix Foreclosure – Video of Live Auction at Trustee Sale

There has been much hype about buying foreclosed properties in mainstream media and on the internet. You may be wondering:

What is it really like bidding at the foreclosure auction? Are there good deals to be had? What does it take to get a good deal?

Last week I interviewed John Ray, owner of a foreclosure auction bidding service firm located in Phoenix, AZ. John has been in real estate for 20 years and is a wealth of knowledge when it comes to bidding on foreclosed properties at the trustee sale auction.

John’s company BidAZForeclosures.com has been bidding at Maricopa county foreclosure auctions on behalf of investors for 7 years, currently buys about 100 properties a month, and is one of the largest bidding groups.

This interview lasted over 30 minutes; it has been captured on video and edited into 4 parts. It is well worth your time to watch all 4 parts because you’ll learn John’s insider perspective on getting a good deal at the foreclosure auction and how to avoid common mistakes investors make.

Topics Covered in Part 1 of This Interview

• Are there good deals at auction?
• How many properties are bought at the auction?

Overview of the foreclosure auction process:

• How do properties end up at foreclosure auction?
• Why do some foreclosures get postponed?
• How does the bank establish the opening bid?
• What is a “total debt” bid vs. a “specified” bid?
• What really happens at the trustee sale?
• What happens after you win a bid?
• How do you get title to the property?
• How do you take posession of the property?

Topics Covered in Part 2 of This Interview

• How does the current market cycle compare to the previous one?
• What’s happening with bank REO properties?
• Why aren’t banks doing more short sales?
• How do you buy properties at auction?
• Why do investors use your bidding service?
• How risky is it?
• What are some common mistakes?
• What due diligence do you do before bidding on a property?
• What happens when you make a mistake?

Topics Covered in Part 3 of This Interview

• Is there any truth to the “old boys network” that controls the auction?
• What is it like bidding at the auction (examples)?
• What is blind bidding?
• What are dropped bids vs. jumped bids?
• Where do you get the property listing info?
• How are you different from other bidding groups (examples)?

Topics Covered in Part 4 (Final Part) of This Interview

• How do new investors get started?
• What is the Jump Start program and how does it work?
• What are some common beginner mistakes and how do you avoid them?
• Do you really have to pay all cash at the auction?  Are there other options?
• What is “hard money” and why do people use it (examples)?
• How does an investor work with a bidding service like yours?
• How do we contact you for more information?

Please let us know what you think of the interview, whether you love it or hate it, by leaving a comment. If you enjoyed this interview, please rate the videos on YouTube as well.  Thank you in advance for your feedback!

If you’d like to see a video of live bidding at the Phoenix (Maricopa County) trustee sale auction, see my prior posts:
Phoenix Foreclosure – Video of Live Auction at Trustee Sale

Phoenix Foreclosure – Video of Before and After Rehab & Interview with Expert Flipper

Watch the video below for my second visit to this upscale Desert Ridge home, as I tour the house and point out the changes made.

After Renovations

Before Renovations

For your reference, the “before” video (just 2 days after the home was purchased at the Phoenix trustee sale auction) below:

Ask yourself this question:

Would YOU buy this home for approximately half of its peak price at the trustee sale?

Related post: Real Estate Investors Turning to Trustee Sales for Bargain Purchases

ABC news presents – Bargain Homes for Sale with Bruce Norris  [5 minute video]

Bruce Norris, a well known Riverside, California real estate investor was on ABC’s Nightline. 

This is one of the few examples of professional real estate investors being part of the solution to the current market crisis.  Finally, main stream media portrays investors as something other than “vultures.”

His cost basis in the property is pretty good.  About $100k invested with rents of $1100-$1200.  Thus the monthly rent is greater than 1% per month of the home’s purchase price.  Historically the 1% rent ratio is difficult for investors to obtain in California.   In fact when I invested in Texas real estate (lower priced), 1% rent ratio was considered good.

By the way, Bruce mentioned going through trustee sales was a good way to buy houses for investment.

For those of you looking to rehab and then rent or flip houses, here are some notes I took regarding Bruce’s renovation choices.  Note that he has purchased over 1000 homes for investment.

Norris bought a basic 3/2 house for only $55k in California plus improvements (costing $38,000), which include:

• Granite counters (remember when only millionaires had these in their homes)
• New solid wood kitchen cabinets
• Neutral paint, with white paint on trim and ceiling
• 12” tile in walk ways and kitchen
• New stainless steel appliances

During the real estate bubble, investors were part of the problem because they increased demand for housing, pushing prices even higher.  Now in the bust, they can be part of the solution for the excess housing inventory.  Otherwise, these beat-up, empty homes would be left to rot in neighborhoods across the country.