Bid4Assets

Established in 1999, Bid4Assets operates as a pioneering online auction platform specializing in distressed real estate assets. The company's inception traces back to its founders experiencing a cumbersome, in-person property auction on the courthouse steps in Baltimore, Maryland, which inspired the creation of a more efficient, digital alternative. Co-founded by Norman Understein, Rick Zitelman, and Jay French, the firm quickly established itself by securing a General Services Administration (GSA) contract in 2000 to conduct the first-ever online forfeiture auctions for federal law enforcement, including the U.S. Marshals Service.

The firm's primary clients are government entities, including over 100 county governments, for which it conducts tax-foreclosure auctions, sheriff's sales, and federal forfeiture auctions. It also serves private sellers, such as financial institutions and real estate funds, looking to liquidate distressed properties. The platform caters to real estate investors and other buyers seeking value-priced or high-risk properties, which are often sold as-is and may require significant due diligence from the buyer. The business model centers on facilitating these auctions online, thereby expanding the potential buyer pool far beyond what a traditional live auction can attract. Revenue is generated through auction completion fees, which are often structured as a buyer's premium (typically 10%), and listing fees for private sellers, allowing government clients to use the service at no direct cost.

Bid4Assets provides an end-to-end online auction service. The platform lists a wide array of properties, including residential homes, commercial buildings, and undeveloped land, often at starting bids as low as $1. The company hosts these auctions on dedicated landing pages for its government clients, managing the entire process virtually. A key feature is the requirement for bidders to submit a substantial deposit, which ensures participant seriousness and is applied to the final payment for winning bidders. Since its founding, Bid4Assets has facilitated the sale of over 125,000 properties, generating more than $1 billion in sales. In November 2021, the company was acquired by Liquidity Services (NASDAQ: LQDT), becoming a wholly-owned subsidiary, a move intended to accelerate its penetration into the municipal government real estate market.

Keywords: real estate auction, distressed assets, government auctions, tax sales, sheriff's sales, online marketplace, property auctions, foreclosures, asset forfeiture, tax deeds