Games That Investors Will Play At Auctions
I just read a post and somebody warned about games that investors play to rip you out of your money can somebody elaborate?
Also I am contacting illinois about tax auctions and through the first ten treasury offices I have spoken to say that average the average certificate is purchased at 0-2% penalty yield. She also said that investors make millions this way. She said something about every six months the rate doubles, and you can purchase the sub taxes for 12% the next year, next year. IS THIS THEIR ANGLE????
[ Edited by JBCORP617 on Date 06/03/2004 ][ Edited by JBCORP617 on Date 06/03/2004 ]
Investors make millions if they buy MANY parcels at the tax sale and yield some of them in form of tax deed. You're not gonna make millions if taxes are getting redeemed. What's happening in Illinois(Greater Chicagoland area, at least) is that investor competition is so fierce that they will bid down the penalty rate @ the tax sale to 0%, and they will own these taxes for a year without any return. If subsequent year's taxes are not paid, the investors can purchased them as well and get automatic 12% interest then. If the property is not redeemed in 2-2.5 years, investor can petition for tax deed and end up with a title to the property for the cost of about 2-3 years worth of taxes(or generally 4-6% of FMV). However, if the property owner redeems taxes purchased within first year, the investor gets nothing if they bid the interest rate down to 0%.
I see and is their something on the parcel info that indicates whther or not it will turn to a deed?
if you bidding at auction you need to be aware of buy/bidders. these are indiv. that are working in the sellers/auction co.s interest. they will bid to run the price up. always do your homework know what is a "good buy" for you. don't gey caught up in the fever. stick to your price. i only make a bid when the auctioneer says " going twice...."remember the last bid is the only one that matters,......kenmax