Scavenger Sale?
Does any one have any information regarding this Scavenger sale that Daniel Cobb Sells a book about.
He says "Scavenger sales are auctions for property after there delinquent taxes have not been paid and have not been purchased at tax sales"
I learned of this at the chat session on Thursday, July 10 @ 18:55:04 EDT
This Chat session is in the article section of this website.
Does any one have any experience with these scavenger sales that are supposed to be so great?
In Alabama when a property is not purchased at the county level the property is then avalible to be purchased from the state. Here is the link for more info:
www .ador.state.al.us/advalorem/sections/land.htm
In Alabama when a property is not purchased at the county level the property is then avalible to be purchased from the state. Here is the link for more info:
www .ador.state.al.us/advalorem/sections/land.htm
Scavenger sales are a great way to start investing on a small scale. I'm a Realtor in Illinois and have been involved in this.
The easiest way to explain these sales is that the scavenger sales mostly involve less desireable properties -- most likely vacant land. And I say less desireable because there are no buildings on the property, so the profit is usually a little less.
But there is still some pretty good money to be made at these.
For example, in most Illinois counties, the minimum bid starts at $450. I've seen some larger parcels go as high as $60k at these auctions, but you can get some good deals.
For example, at our most recent sale we purchased three lots for a total of $1,600 (they have a market value of about $21,000).
The county officials go out and mark the lots with "public auction" signs so you can identify them from the book that's issued, which has the pertinent information and a plat of the land. Be careful though, as I've found not all the lots are correctly identified with signs.
There's usually three groups that go to these scavenger sales: Builders (who will mostly pay whatever they have to for the lot they want), residents who are trying to acquire a specific lot that may be next to their current property, and regular old investors. So, even though there may be a few hundred people at an auction, many of them have their eye on a specific property.
So, if you put a priority on what you want beforehand, there is money to be made at scavenger sales.
Beware though, it is the buyer's responsibility to verify they are getting the property they think they are, so get a title search and survey -- for the few hundred bucks, it's well worth it.
Out here in Nevada i haven't been able to locate any scavenger sales but i have heard that whatever doesn't get sold at auction gets sold "over the counter" at the assessors office. mostly vacant land, but for some reason people out here never realize that most land out here (Vegas) goes for a minimum of $10,000 per quarter acre. they have tons of property for sale here because people just don't pay their taxes.
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