Debbie Thomas, a broker investor with Realty Solve in Arizona, has purchased and flipped hundreds of homes from the Auction.com platform by way of AZ Bidder technology. To learn more about Debbie Thomas and AZ Bidder technology, please visit Realty Solve.
How did you get into real estate investing?
I work for a company called AZ bidder and we represented investors at trustee sales. Originally, we started out as fix and flippers for some large investors and then developed a bidding company. Over the course of the past 10 years, we expanded and went into other states and successfully purchased over 20k homes. I do have quite a bit of experience especially in the Arizona marketplace.
How many properties have you purchased from Auction.com?
Thousands. Auction.com is, of course, the big Kahuna in the foreclosure, trustee, or judicial sales. We’ve followed each other across the country many times.
What was it you saw in Auction.com that made you think the partnership would be a good fit for your business?
It’s been an excellent partnership over the course of the years. Auction.com has developed a company where it’s large but it’s small at the same time. And they’re are looking out for the best interest of all of their clients whether they are large or small. If I ever have a question, I get my answer immediately. People scramble to help me to make sure I am having a pleasant experience. And it’s not just me. I see it over and over again. Even the little buyer vs the big buyer; they are treated equally. So that is nice. They are just a pleasure to work with. I can attest to Auction.com being a premier company and having access to some great properties that go up at trustee sale.
Before finding Auction.com, how do you find inventory?
It was difficult. Hunting and pecking for MLS deals is extremely time consuming. You have to make hundreds and hundreds of offers just to get one. So buying at trustee sales or foreclosure sales is actually an amazing, simple, pleasurable experience. It’s easy once you know what you are doing.
What due diligence do you perform before deciding on a property?
My advice to anybody out there is to do your due diligence.Checking title is crucial. When you’re buying at trustee sale, your sale is final. You want to make sure you’re dealing with a property that has good title and is in first position. I always drive properties. I won’t bid on a property unless I’ve driven it or had someone drive by and had someone give me a report. Comping is also crucial. I think the biggest mistake investors make is not knowing what the property is really worth. You can’t rely on algorithms. The truth is, you have to know what that property is worth. There are tools and statistics out there that can help you figure out the value. Comping a property is probably foremost the most important thing to know when you’re flipping a property. What is that home really worth, and how much more than another home in that neighborhood because you’ve remodeled it, is it worth. Once you determine that, then it is easy to determine your rehab costs and you’re disposition cost.
Do you attend live auctions or purchase online?
We also have technology that allows our clients to watch bidding online. I just really sit back and watch on my computer and bid on properties.
How would you describe your experience purchasing at live auction?
It’s very euphoric. Auction.com is great because they set up tents, they have donuts and coffee. It’s really a great crowd of people. The auctioneer cries out these properties and the bidding begins. You’re always wondering if you’re going to get the property. The truth is, you have to really know what your max bid is going to be and really feel confident in what your price is. The biggest mistake investors make is they don’t know what it’s worth. They rely on algorithms they find online. The truth is, you have to feel confident of what the home is worth. There are tools out there and information you can get so you know how many homes you’re competing against when you go to sell your property. I always keep in mind that when I buy a property, I’m focused on who’s going to end up with my house. And that’s going to be the consumer. The consumer is buying my house because they are fulfilling a dream. They’re getting married, they’re moving here or they’re retiring from out of state. I look at everything from the consumer standpoint. And if you do the right thing, you will get top dollar for your homes. So, it’s knowing what those steps are to get to that final stage.
Do you buy these homes to hold them or do you fix and flip?
We have many investors that are buy and hold clients. But my preference, I love flipping homes. It’s exciting. It’s hard to explain. Of course, it’s a wonderful way to make money and that’s you end goal but it’s enjoyable for me because I enjoy taking a home and transforming it and making the ugly duckling into the beautiful swan. I pretty much have it down pat. My homes are quite beautiful and they usually sell within one or two days after they are completed. And I do get top dollar for them.
How many houses have you flipped?
Personally – that I’ve flipped for private investors – probably about 250. For myself, probably around 50.
What do you look for in potential flips?
Money drives me and most investors. We want to make money. It’s competitive out there. If I have to do a lot of work for a property, I want to make more money to cover my time. If I buy a property, I can use that same money 3 or 4 times a year if they are quick flips. It’s almost like an annual return on your investment. Typically on an easy flip, I’d like to make 9-10% after all of my expenses. Arizona is a great market because everything is well preserved and relatively new. You don’t have to worry about leaking basements, cracks in foundation, mold, things of that nature. When you buy homes here, sometimes it’s just updating with simple things. For example, it’s amazing the transformation a home can have just by adding new paint, carpet, cleaning up a yard and washing windows. It truly is amazing.
With the popularity of “Flip This House” and other reality television shows, do you think the flip market will get too congested?
I think everything is specific to the region. I don’t think there is any congestion in the flipping industry. I started out just like anybody. I didn’t really know much about flipping homes. My advice is anybody can do this. You just have to be willing to learn and seek out sources where you can get information. Auction.com is a great resource because they are quite willing to share their knowledge and offer expert advice so you have an opportunity to participate in this. There’s many opportunities and if you learn and get the right tools, you can do it. Anybody can do it.
What is one piece of advice you would offer to people wanting to get into flipping homes?
Work with people or companies that know what they are doing. If you’re willing to learn and seek advice, you can unravel the puzzle and be successful at doing flips.
Have you purchased anything with us online on the bank-owned side?
I have. Bidding online is a much simpler process and a smoother experience than buying off the MLS. I’ll buy off the MLS but I much prefer buying from Auction.com. In my experience, everything was closed and done within a week.
Does Auction.com help make the process of buying online easier than traditional home buying methods?
I think Auction.com is trying very hard to figure out if there are any missing puzzle pieces. And, I think Auction.com has covered everything. The only thing, that may be a consumer would want that I’d mention, is confirm title checks where there is 100% guarantee.
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