How Do I Purchase Properties In Tax Foreclosure? In New York State (Buffalo)?
A number of people I know and trust are looking into purchasing home in the Buffalo tax foreclosure auction. I am a mortgage broker, and I have worked with many real estate investors who do the very same thing and earn a ton of money. I know there is no such thing as easy money. And, this money will only be earned by hard work and great risk.
I need to know where the risks are. I have investors who will act as a mentor to me, however I would love to hear from serious buyers of tax foreclosures.
[addsig]
Hardest working loan officer--(NY)-----------
The risks have been disussed many times on this forum. Do a search of the archives to find those postings.
These days in many locations there are so many people attending these sales that the properties get bid up to the point that they are not bargains. Well, you are an example. This would be your first time to bid. There well be many other people in the same situation. The amateurs tend to not know what they are doing. Some will be, therefore, very cautious and drop out of the bidding early. They don't present a problem. However, others will pay too much for the properties. They are a problem.
I recommend that you talk to the people in the office that does the auction. Ask them about the last sale: number of properties, number of people, how much properties got bid up, and so on. Also, what their experience is this year compared to last year: number of people, number of properties coming up, etc. Then do the same for other counties or cities that are within traveling distance for you. Plan to go to the sales where there appears to be less competition and better deals
Of course, if you want, you can go to your local sale to observe. My suggestion: research some of the properties before the auction, so you can tell what they are bidding on. It is very boring to hear "$2,000." "$2,250." "$2,500." etc when you have no idea what the property is like and its probably market value..
Good Investing***********Ron Starr***********