Ok, so my husband is a "get rich quick" scheme kinda guy, yes, embarassing, i know. So he has his mind made up that his life is going to include buying propertry by means of winning it at a tax lien auction. I just doin't think it's as simple as all that. i mean, the list out shows property for anywhere bewteen 200 dollars up to the thousands, but i know it's just not as simple as that. can someone please tell me what it's like to go to an auction and what realistic expectations one should actually have of tax lien property.
2007-05-22 17:00:06 · 4 answers · asked by mykidzrkute 3 in Business & Finance ➔ Investing
First, whatever you are buying make certain you are intimately familiar with how to assess the properties fair market value, its marketability, pre-sales repair and selling costs. Second, some property will have a reserve on it. Regardless of what anyone claims be advised reserves do exist. Third there are "old salts" out there that go to these auctions all the time and know the ins and outs. Get to know the people and go to a few to see how many repeat people show-up. I would recommend several trips for watching before acting with this. Get to know the repeats and what constitutes a good deal. It is possible to make money going to these auctions but you have to know what your doing.
2007-05-22 17:14:19 · answer #1 · answered by eeb 3 · 0⤊ 0⤋
I have done this so many times that I could do it in my sleep. And that's about how boring a tax auction is. I have attended San Bernadino and Riverside auctions in SoCal. In the first place you have to research the properties real well. The problem being that the closer you get to the auction the more people go ahead and pay their taxes. So when you get to the actual auction. 2/3 of the properties are allready gone. The ones that are left are usually not great properties. Sometimes something wonderful comes by but then you have a little bidding frenzy. The market is dropping so there might be more properties available. The Auctions that I went to were in the middle of the boom and auction prices were similar to retail prices and sometimes even higher. Now, I am a Real Estate appraiser. I could reasearch the properties right at my home and it was still a lot of work. Then most of the properties that you have reasearched are gone when you get to the auction. So it goes. You could get lucky and find a great property but after going to all the auctions, I never bought a property. You have to take cash or cashiers checks and I was carrying around all this money for nothing. Not a comfortable feeling. Good luck with it. you'll need it. Remember, The prices listed on the brochure are just the starting price at the auction. These are the taxes owed. The price you pay could be much more. it won't be less.
2007-05-22 17:15:25 · answer #2 · answered by Traveler 7 · 1⤊ 0⤋
The liens belong to the owner of the valuables earlier than the foreclosure. you need to not might desire to pay them and that's beneficial to verify including your state assessor place of work for the stunning answer. it is likewise attainable the regular auction cost comprise the surprising unpaid taxes so the assessor recovers the taxes unpaid through the former proprietor.
2016-11-05 02:04:07 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Go to the library. There are tons of books on that subject. You are quite correct that it's not as simple as some pretend although there are people who have done very well.
2007-05-22 18:08:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋