Selecting Properties To Bid On
Hi All,
I need ideas. I went to TLC auction in South Carolina last week. There were over 1000 of TLC for sale. As I was doing my due diligence for the auction, I only considered 20 properties (picked randomly) or so, because I only know of ONE criteria (that I learned from the 16% solution book): sticking with improved residential properties.
I couldn't help but feel there must be a better way to chose from the 1000 or so TLCs for sale than to randomly pick 20 properties and make sure they are houses. I heard the Lennox Group does extensive due diligence to increase the probability of non-redemption (not sure if that true of just a sales pitch for their service). Does anyone here know where I can find some method developped to pick property that's unlikely to be redeemed. I thought of dead owners with no mortgage, but didn't know to get such information from public records.
I guess my question is, how do you minimize redemption rates on worthwhile houses. Any ideas will be appreciated.
[addsig]
Tough question. I'd pick more than twenty, narrow them down online by looking through assessor's records (hopefully yours are online) and then do drive-bys in the neighborhoods you like. Look for vacancies.
Other than that, most nice houses are going to have the taxes taken care of before it goes to sale. And if they didn't, the lien holders are probably going to pay you off before you can wipe out their rights.
I saw a sweet one go at a tax auction a few years ago. A nice house near a local lake. Probably 2800 square feet with a wooded lot and fireplace. Abandoned. Back taxes were $10K or so. The bidding started at a fraction of the assessed value and rose up to about $52K. SOLD for $52,000. Worth well over twice that. I was drooling.
So . . . moral to the story . . . it happens. Just not as often as we wish.
Have fun!
First off, LOCATION IS EVERYTHING. Those properties will get the best selling price when it comes time to resale. Another thing, look at back taxes, you don't want to be responsible for those, if it is a rehabber, are they quick fixes, or big projects. just a few quick things to consider
Eric