Re: tax sales - Posted by Killer Joe
Posted by Killer Joe on April 04, 2006 at 20:27:39:
I attended a tax auction this past friday. Last year I picked up a prize at this event. This year there were no $120K to $160K properties, only building lots in the zero to $15K range. Didn’t matter.
Here’s what happened…new records were set for lots in that area. There was not a wholesale deal among the 14 involved. One of the properties was on the MLS for $2500.00, it sold at the auction for $7900.00. There was a lot that was legally (restrictions), and geographically (terrain) useless, it went for $6700.00. The guy sitting in the seat in back of me got out at $6200.00. He was lucky. I turned to him when the gavel dropped and asked him if he had driven by, or even seen the property, he said no. He had only seen its’ location on a tax map. He would have most likely walked away from his 10% or $620 deposit if he didn’t have a buyer in the next 30 days and had to swallow that property until the next bigger fool showed up. His 30 day agreenent would have been for the balance, or $5580.00. And then there is the titlework required before pulling the trigger, figure a few more hundred for that.
Btw, I made an offer for a property another investor bought last year that was contiguous to mine, so never underestimate the value of networking at these events.
Bottom line…just becuase someone else in the room is bidding, that is no reason for you to give that persons opinion any weight. They might not own a car, only a map. HTH