NORA Spring 2018 Real Estate Auction Buyers Seminar March 21, 2018
Presenters Steve Madura, Vice President of Marketing Hilco Real Estate Fernando Palacios, Project Manager Hilco Real Estate Paul A. Lynn, CCIM, Senior Project Consultant Hilco Real Estate
Frequently Asked Questions What is new to this auction? How will the auction be conducted? What are the properties for sale? Is this a Minimum Bid Auction? How do I find out what is for sale? How do I inspect the properties? What information is available about the properties? What do I do to prepare for the auction?
Frequently Asked Questions cont d What will the auction be like? How do I complete registration? What is the Online Bidding Process? What is the closing procedure? What are the property requirements and restrictions? How can I see sample Online Bidding? How can I get more information?
What is New? This will be an Online ONLY Auction Bidding will be open at 8:00 a.m. CT Monday, April 9 th and begin closing on Tuesday, April 10 th at 12:00 with closing sequentially in 3 increments thereafter minute Minimum Bids There is a minimum bid of $3,500 per property on each lot
Auction Location This will be an Online Only Auction Complete information and registration available at www.hilcorealestate.com/nora Hilco Representatives will be available during bidding at the offices of Jackson & McPherson, 1010 Common, Suite 1800, April 9 th Noon 6:00 p.m. and April 10 th 10:00 a.m. 5:20 p.m.
Auction Schedule Bidding will begin on Monday, April 9 th at 8:00 a.m. Bidding will end on Tuesday, April 10 th between Noon and 5:00 p.m. (bidding may be extended depending on when bidding ends on other properties) Electronic Agreements will be delivered immediately following the auction and signed Agreements and additional deposits MUST be received no later than Friday, April 13 th at 3:00 p.m.
What is a NORA Property? NORA properties are those parcels owned by New Orleans Redevelopment Authority (NORA) which were acquired through transfer of former Road Home properties, through expropriation or other means. These are NOT tax adjudicated properties.
Property Portfolio 88 Development Lots 15 Structures Located in various neighborhoods throughout New Orleans
Minimum Bid Auction There is a $3,500 Minimum Bid price for each property in this auction: Once the Minimum Bid price is placed, the property will be sold to the highest bidder, regardless of price $3,500 will be the opening bid on each property and additional bidding increments will be at the discretion of the auctioneer
Auction Information Website: www.hilcorealestate.com/nora Downloadable Brochure Sample Agreement to Purchase and Sell Detailed Property Information Open House Schedule Other Misc. Forms and Disclosures Broker Registration Form Registration & Pre-Registration Information
Brochure (Sample prior auction)
Website
Due Diligence Properties offered on an AS-IS, WHERE-IS basis Physically inspect each property in which you may have an interest prior to the Auction Houses/Structures are all in various physical conditions Feel free to bring contractors or experts to inspections All sites are subject to any existing zoning Some properties may have been constructed prior to 1978 and are subject to applicable HUD LBP Disclosures
Property Inspections Structures will be available for inspection prior to auction Saturday, March 24, 2018 Times: 11:00 a.m. 1:00 p.m. and 2:00 p.m. 4:00 p.m. Visit website www.hilcorealestate.com/nora for schedule and other instructions
Broker/Realtors Buyer Agents are Welcome Earn 1% of the High Bid price Broker Registration Form due on Friday, April 6, 2018 by 3:00 p.m. CT No agent registrations after deadline Complete and submit Online Form Agents cannot represent themselves as buyers
What Do I Need to Bid in the Auction? Register on auction web site at www.hilcorealestate.com/nora Review documents and information about the auction and the properties In order to participate in the auction you MUST do the following:
What Do I Need to Bid in the Auction? (cont.) Provide complete information Submit Online Auction Agreement Provide payment of initial deposit(s) of $3,500 per property Once signed Auction Agreement and deposit(s) are received, you will be notified and provided a Bidder Number
Initial Deposits Cash or Cashier s Check Delivered to Offices of Jackson & McPherson, 1010 Common Street, Suite 1800 Wire Transfer Funds wired to Jackson & McPherson Instructions can be found in Terms of Sale Credit Card Visa or MasterCard; online Credit Card deposits can be made at www.hilcorealestate.com/nora (Note: All credit cards deposits will include a 3% non-refundable convenience fee)
Pre-Registration Bidders MUST complete registration for the auction by Friday, April 6 th All forms are available from the web site www.hilcorealestate.com/nora Complete Auction Agreement and deliver or wire funds by April 6 th, 2018 Try to avoid last minute glitches when bidding begins on Monday, April 9 th
Auction Day Bidding will begin Monday, April 9 th at 8:00 a.m. and will end Tuesday, April 10 th between Noon and 5:00 p.m. (may be later depending on any extended bidding) Bidding on any individual property will be extended for an additional 3 minute increments so long as there is an increase in bidding amounts within the final 3 minutes of bidding Immediately following the close of bidding, the high bidder will receive electronically the Agreement to Purchase and Sell. The Agreement must be signed UNCHANGED and returned to Jackson & McPherson
Deposit Requirements Buyers must have a minimum of $3,500 for EACH property they plan to buy (maximum of five (5) properties can be purchased.) If you are the highest bidder, the $3,500 will become your initial deposit and must be increased to 10% of the bid price and received by Friday, April 13 th at 3:00 p.m. Acceptable forms of payment for additional deposit; wire transfer, cashier s check, money order, or cash: NO CREDIT CARDS accepted for additional deposit(s). Examples of deposits: Bid Price: $15,000 Deposit: $3,500 Bid Price: $50,000 Deposit: $5,000 Bid Price: $120,000 Deposit: $12,000
Post Auction Requirements Additional Deposit(s) and executed Agreements to Purchase and Sell MUST be delivered to Jackson & McPherson by Friday, April 13 th at 3:00 p.m. Funds and signed documents may be submitted electronically or by hand delivery to the Offices of Jackson & McPherson at 1010 Common Street, Suite 1800 Failure to deliver signed documents and any additional deposits by Friday April 13 th at 3:00 p.m. will result in forfeiture of the $3,500 initial deposit and property may be sold to the next highest bidder
Restrictions Single buyer or buyer entity is limited to a maximum of five (5) properties Buyer agrees to REPAIR/MAINTAIN AND DEVELOP PROPERTY and OBTAIN & MAINTAIN FLOOD INSURANCE FOR ALL STRUCTURES Repair or new construction MUST BE COMPLETED within 365 days following closing. There is a 25% penalty if auction buyer sells the property within the 365 days. Lots can be kept as green space by adjacent property owner only
Financing All Sales are Cash Only at Closing NORA is not offering any type of Financing Buyers should meet with lenders before the auction to secure pre-commitment letters
Closing All Sales are to be made in certified funds at closing No Financing Offered Jackson & McPherson 1010 Common Street, Suite #1800 by appointment only Most sales must close 30 Calendar Days after Auction or by May 10, 2018. There are 13 properties for which closing could be extended up to 90 days to clear title issues. On sales of structures, proof of flood insurance coverage is required
Questions & Answers Call Fernando Palacios 504.233.0063 Visit www.hilcorealestate.com/nora
Thank You LA Lic. Auctioneer Steven Mathis # 1834 Paul A. Lynn, CCIM (LA Lic. Broker #76068-ACT)