Folks,
Just thought i will share. Attended the auction at the
courthouse steps in NC.
There were about 15-20 folks.
I had 1 property in mind and went with the cashiers
check.
The lender had a first bid of 179,200 or so.
The property is worth a minimum of 220
and the max could be around 230 or so.
The property tax is due - 2k
The auction sales tax is around approx 1K.
The property needs landscaping - say 1-2K.
Again, no idea on interiors.
I bid about 188 and gave up. Someone nabbed it
for 190.
There were just 2 other bidders. The rest were
watching. Some other rookie was asking questions
to the auctioneer about there being leins on the
property, which the auctioneer just gave a shug
I doubt if i can get a deal at the courthouse. Looks
like is a waste of time.
How are these high bidders making the dough?
The risk is high and the reward diminishes.
Krish,
I found the same to be true in Denver about 5 years ago the key I learned is to only bid on properties that have a huge 2nd mortgage. And hope the 2nd would not redeem as 90% of them do not because they do not want to own the property and it is better for them to write off the loss. If not at least you make more money on the interest you get then you would at the bank. This has worked for me in the past and I hope it helps you as well. Also the other thing to keep in mind is if a property has equity in it chances are they will find another way to redeem it.
Thanks Robb,
In NC, there is no redemption period for anyone
including the owner.
There is the so called 10 day upset bid period. If
someone wants to up their bid, they will do so by
atleast 5% over the prior bid. This resets the 10
day window.
This person that was competing in the bidding
did not appear to be from a lender. But i guess i
will have to show up in a few more auctions to see.
