Posted by Ronald * Starr on August 12, 2001 at 14:01:16:
John Beck calls NY tax sales “Public Oral Bid Auctions.” This is the same category into which our CA tax sales fall. The county (or probably city in NY) auctions off delinquent properties and you get a deed for the properties.
In NYC, only the city can bid on the properties. They then resell some of them in a public auction. In other counties you should be able to bid on and, if successful, buy properties.
I found an auction company which conducts a lot of the sales for the cities and they have a web-site where you can see what is coming up. This would be very helpful to you. And, of course, other people. So the competition might make it hard to get good properties at the prices you can afford. But the only way to find out is to check into the sales. Either study the results from some previous sales or go to sales and see what happens.
I think you can find the company if you do a search on the internet, that’s how I did it. I think I searched on something like “delinquent taxes” or “tax auction” or something like that. I got about 200 sites, if I recall. Searching through I found that New York company doing sales. It might be faster if you searched for “new york auction” or something like that. You could also call around to some cities and ask the treasurers or tax collectors what companies do these sales.
You should be able to get vacant land or lots for less than $9K. However, you need to study carefully so that you only buy properties that will be attractive to some buyers. Many tax-sale properties are junk. Avoid those. Better to pass up a good deal than sink your resources in a bad deal.
The major issue is can you deliver clear title to the new owner? Check with title insurance companies to be sure. You may have to do a “quiet title” lawsuit to resell. This is sometimes expensive and ofter time-consuming. Figure out good ways to resell your properties.
You might get an improved property for what you have in the way of cash. I doubt it, given what I observe in CA auctions. But, again, the only way to know is to check into it.
Good InvestingRon Starr