Riverside County CA Tax Sale Report
March 15-16th was the day that lots of idiots threw away a lot of their hard earned money.
An excess of 2000 people showed up at the auction, and most of them were new bidders. The auction began with the traditional reading of the rules of the auction as well as other procedural formalities. Before the bidding began, the Treasurer warned everyone not to bid on properties that they had not researched. He spoke of a woman at last year's sale who bought a property that was drainage ditch. She was fortunate to have the sale reversed with the help of a local columnist. The treasurer indicated that was nott a common occurance to happen and once again warned buyers that this was a "buyer beware" sale.
Bidding commensed at around 9:30 am that morning. The first parcel was a 1/4 interest in a parcel. Starting bid was $540. It quickly increased when at least 10 bidders were in on the fray. Quickly in increments of $100, it reached $10,000. By that time, 3 bidders were still in. It reached 11k, 12k, and 20k within seconds. Whispers could be heard in the crowd.. What were these guys bidding on? Was it worth that kind of money? Bidding continued until it reached $25000. $25,000 for 1/4 of an interest in a property. I still don't know what that buyer was thinking.
The frenzy continued that entire day. No property went unsold. All properties were sold that day, and all reached several thousands of dollars. The cheapest land sold that day was for $3400. I talked to the buyer and he intends to list it on Ebay. Unfortunately, I don't believe that a 50 X 100 piece will sell for more than $3000 on Ebay. I've done my research and buyer at more than that price will certainly guarantee a loss. Other vacant land measuring 50 X 100 sold for as high as $16000. and those were in poorer subdivisions. There were no bargains to be had at this auction.
I personally researched some properties in Lake Elsinore many of which were on the steep inclinations on the sides of mountains which were unbuildable. They sold for tens of thousands of dollars. Those buyers will be surprised at what they bought. I'm sure they'll crap their pants when they see the parcel They certainly won't be back next year.
The bargains in California are gone. Remember, this auction happened in Riverside County and land sold at tax auctions for $1-2 K two years ago. Too many people, particularly newbees are raising the prices. Tax deed buyers will have to approach new methods or alternative strategies to still get bargains. Do not expect to get rich at these auctions anymore; at least not in California. Greener pastures lie in places like Arkansas, Kansas, and Texas.
I won't be back at the next Riverside auction, and certainly will not research the properties before hand anymore. I spent over $100 in gas driving around looking at the properties, and countless hours at the courthouse doing research. All of this for nothing. I didn't get a bargain at the auction, but as one other "guru" advocates there is an auction after the auction.. I fully intend to be there when the newbees decide to cut their losses and become motivated sellers. The fun is just beginning.....
Well you have had an education. But it was fun. Like watching Leemings dive off the cliff.
Of course you realize that all the experienced types bought all of the goodies prior to auction. I am sure you read the corrected list showing those whose taxes had suddenly been paid. My thats the real fun part of the game. Some very interesting transfer of ownerships.
Within 60 days our mailing will go out to all the new owners, yes the ski slide down the mountain, excellent lot. The Coyote who is squatting there sends his love.
The answer is to do your home work. You should be able to really read those listings prior to sale. Your move is always prior to sale. I walk and kick dirt on all properties. Yes I do remember all those lots that were under the high tension wires and nobody bid them. I picked them up very very cheap and then I practiced up my Japanese and if you go to visit you will see all the nurseries under the high tension lines. Growing all kinds of flowers and bushes and etc. Now that was a goody.
The drainage ditch, think a minute, can you not see a ussage. Do you not believe that landowners on either side might be interested. Have you been there when the floods are rolling? So much to learn.
If you are going to play in the sandbox of California, you must not follow the crowds. You must be there before, or if you like to scavange, then attack afterwards.
My little gray 1981 VW diesel pickup truck has seen almost all of those properties.
Of course you start in way before anybody else you pick up the first publishings of default years before, and you watch them mature in default and then you select and you contact the ownership, that in itself is another task to learn. You deal changing your approaches each year of the five year of default that proceeds the sale and you are active during the entire time.
You are of course aware of the five pay plan that is extended to those who are tax delinq. Massaging those plans is a very very very profitable endeavor. How many do that? Would you believe three people. Believe me their approach is Neanderthal. We can scotch mail their pieces and auto contact each and every one. How many do that? One very old man. An exbared attorney. He stopped this year.
Ah well a little bit. But this game is deep and requires a pocky nose and time to check it all out. Profitable? Of course. The beauty of the game? The profit does not show ever.....
Lucius <IMG SRC="images/forum/smilies/icon_cool.gif"> <IMG SRC="images/forum/smilies/icon_cool.gif"> [ Edited by Lufos on Date 03/17/2004 ]
Pete--(CA)--------
Thanks for the report. I enjoy hearing about sales that I do not attend.
Now, look here. You got me hooked with that first property and the $25K price for 1/4 interest. If you know anything about the parcel, spill it, guy. If you don't know anything about it, please at least put the assessor's parcel number into a response to this post. At least with that I have a good chance of getting some idea of the value of the interest.
Good Investing***********Ron Starr*********