Started Due Diligence For Jan Sale
I will be attending another auction next month and started checking out the properties listed for sale in my county. There are 9 properties scheduled. Of course, several will pay before then. Most are small, older homes that would probably not sell for more than 20-30K in the current condition. However, if you could get them at the tax deed sale for the taxes owed then it would be a bargain. Taxes on these properties range from $289.44 up to $1257.38. Not a lot of money but a change to make 20% here in Georgia (a hybrid/deed state with a 12 month right of redemption period) on the money. One house I looked at today has moss growing out of the roof so it needs a lot of work.
Will update this post as I look closer at these houses and get closer to the sale date of Jan 2, 2007. What steps do others (you) take in preparing to bid on the tax deed sales?
Do a lot of research. Decide what it is gonna cost to fix each property up combined with the bid and govenrment leans you may have to pay on the property. Look at this figure and determine if it is worth it. Set a maximum bid for each property you want to bid on and base it on that info.
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What research should be done? In my area most properties are redeemed so all I am looking for is the 20% interest on my money. I have driven by the properties and would be very pleased to have them not redeemed for the small amount that is due on the taxes. I will not bid more than 2-3K for any of them. So, even if they required a major rehab to make them rental properties it would be worth it.
There is a lot of research that needs to be done. Too much to explain in detail but here is one reason why...what if you buy a property and it has a 40k IRS lien? Or it has a 10k demolition lien from the county? As the new owner, you have to pay those liens!
Also, why are the homeowners not paying the taxes, sometime there is more too it than just being broke. Here is an example of other mishaps from crappy research, there was a beautiful lot for bid...I did so much research on it...and missed that it was classified as a sinkhole (I drove by and it looked like a great lot, no obvious sinkhole)! That couldve been an expensive mistake. Thank God I didnt get it.
Research really isnt that big of a deal, but it needs to be done to avoid buying a problem. So be careful and good luck at your next auction!
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well your welcome anyways
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Thanks Happyhome...I will definetly get the book. I have become pretty proficient in researching online and in the clerks office, but I want to KNOW I am doing it right and that I am not missing anything. Sounds like the book you recommended would be perfect for this. The only reason I may take the course in the future is to be able to charge people for my services. Thanks again for the recommendation. Kara
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What are you refering to loon? I am sorry, I didnt get what you meant. Just pay for title searches...?
You need to find the Realtors in your area who specialize in selling bank owned properties.
As a real estate broker that sells bank owned properties, I often have to find and hire people to do the cleanouts, winterizations, lawn care, etc for the bank.
Checking out your local Realtor multi-list service, contact the Realtors that specialize in selling bank owned properties.
There is always a demand for good people willing to do a good job at a decent price in a timely manner.