Anyone deal with Leilâo (auctions) in Brazil?

There was a recent link on this. Look under banks and finance, BR form

Can't find it.

Look under What Bank Favorable to N Americans

Started by Grizz AKA Big alsaca

Okay picked up Card Bradesco it is a debit from checking account card, it can also be used for time payment plan ( the credit side of the card aka time payment plan must be phoned in for authorization of purchase)..

Awaiting similiar card Caxia.....

I tried to use the card on Saturday and the card stated invalid...I was told at issue the card was ready for use (lol)..

Returned to Bradesco on Monday as I had a appointment to discuss the house and car, while waiting I went to the ATM and asked the clerk the problem,  he inserted my card, I did the biometric thingy and whoola succe$$, it seems the card must be activated at the issuing bank prior to use....lol...yet the clerk on Thursday said it was ready for use....

The house involves a "Consortium" or "Finance" as well as the car, the one thing I think is consortium buying requires less of a entry fee...

Uncertain on Rules of Consortium buying? For Bradesco.

The bank will finance 80% for the House and the Same on the Car that's without being in the "Consortium" in the consortium the rates of entry are differant and maybe smaller.

The 20% is required by the buyer.....me...

Wednesday I will check "Caxia" and look at there similiar program..

Will update on my banking adventures,  as of now we got a "Rodeo"...smh

Has anyone withdrew more than there daily limit using a debit card and being assisted by a teller???....my bank says if I withdraw at the bank using a teller there are no fees????





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I'm wondering if buying a property or vehicle via Leilao, non-financed and paid by "vista"...
From my understanding for properties if paid via vista would be give 10% "discount". + the leiloeros comission 5%

applicable taxes, debt transfer...looking to see if it is worth getting into.
and see if other users have experiences and how it works exactly.

I am helping set up a property purchase in Caixa auctions for some old foreign clients.  It is interesting investment. Normally a scheme that would allow more than 33% in revenues, utilizing the discounts the foreclosed properties are sold minimally. You have to sort out, of course, the debts in IPTU and Condo, plus evicting anyone living at the property. It is an intricate process, has to be dealt with carefully, but apart this, it is normally very safe (you will end up with a sound title and a cheap property).

Tex,
Are you talking about withdrawal limits on your US debit card?  If so, talk to the people in the office at your Bradesco branch:  they may be able to raise it for you as a customer, unless you're up against a hard limit set by the Central Bank.   If it's your Bradesco debit card, they can raise all your limits to their max, whatever that is.

We are still deciding if we want to get into as it is an appealing investment...

Thanks for the reply..

It's just the debts of IPTU and Condo that is mandatory and the sole responsibility of buyer?
What are the processes involved in evicting the occupants?
Bit confused because I thought that was part of the Leiloeor's responsibility/as part of commission.

Any other major tips we should look out for?

Cheers.

abthree that quote was from Grizz. I have had the limits raised (never use debit except at  to get cash). All were done fast and easy.
Now the fun stuff...Making a Will with a trust in Brasil....... seems the attorney has a good grip on the reins.

Sorry about that!

A will?  You're a braver man than I am, although I'll need to do it eventually.   You can educate me when you complete the process. 

I think Tex misunderstood my question...

Abthree, I will share. All papers being translated now. The issues are all funds in US and many held in IRA's. One slip by wife and she triggers penalty under the IRS. So I retain an attorney here to set p a Living Trust.
Nv91. I understood the question and remembered the posts about the subject and passed it on.

nv91,

Leilão is indeed very tempting isn´t it? I did venture once, was  able to buy an apt for investment but was too time consuming and risky that I quit after. I even went into
bullet ridden cars (oh Lord) and I only hoped the occupant was alive! It could probably been a shootout between the police and drug dealers...

For cars you will pay the "taxa de patio" and the auctioneer´s commission. About a thousand reais. It´s better to bring a mechanic and a "latoeiro" with you to assess the engine and body damage repairs especially if it´s for resale. You can visit to look at the cars with the hood opened but normally you cannot enter inside the car.

For real estate there are a lot of precautions. I don´t know how much is profitable for you, so here are a few precautions:

1. The 30% below market price is normal. But a few items would eat up on the value:
   
    a. 5-6% of the auctioneer´s (leiloeiro) commission.
    b. 5% (approximate) of the value due to the transfer process. That includes the ITBI
        (Imposto Sobre a Transmissão de Bens Imóveis) and the Registro em Cartório.
        So that´s already a 10% debit with 20% remaining of profit...
    c. To assess the real value of the property, you NEED a real estate agent to help you
        out if the price is up to par with the location and condition of the property. That is
        another fee.
    d. You also need an architect to asses the damage and how much you need to set
        aside for said repairs. Another fee to pay.
    e. You also need a lawyer to discover any lawsuits against the property or the owner.
        Another fee...
    f. THINK TWICE if the property is occupied. EVICTION can take up to 2 years. And when
        the occupant leaves, it´s possible that taxes like IPTU and the "taxa de condominio"
        are behind and the property is already in bad repair. More expenses if you´re not
        careful. Opt for judicial bidding as in my experience they´re usually already vacated.
   g. If you sell and there´s capital gains, you will be taxed accordingly by the gov´t. on
       your yearly income tax declaration.

2. "A vista" is better than financing because of high bank interest rates. The auctioneer
        usually wants you ALREADY pre-appoved for financing. "A vista" or cash also works
        in your favor so as not to eat up more on the "perceived" 30% advantage.

3. Read the facts published about the property. The date of the bidding, the starting bid,
state of repair, who is the seller and who is responsible to pay the IPTU and the "Taxa de Condominio."

So there you go. It´s really not for amateurs! I hope my experience does help you. So give us a feedback of what you think to inform our community...

robal