Sheriff Sales question

Hello, when people buy at sheriff sales and win, what do they do with the property? I've heard of people making $100k+ off of one deal.. is this possible? If so, what strategies need to take place to pull this off. Thank you very much.

Edited: 06/26/2010 at 10:25AM

Shaun Steckler

Foreclosure Specialist · Lafayette, Louisiana

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Icon_minipost Nov 10 '09, 08:39 AM

When you say buy at the sale and win, I'm assuming you've outbid everyone by making the lowest possible offer.

If so, then you must know what your exit on the property will be before you buy.

For example you can,

1. Buy & wholesale to another investor
2. Buy, renovate and sell (flip) to a retail buyer
3. Buy, renovate and rent for monthly passive income
4. Buy, tear down & build a high rise condo :)

Edited: 06/26/2010 at 10:28AM

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Icon_minipost Nov 10 '09, 09:49 AM

Greg, making money is not that easy. There will be other bidders at the sheriff's sale and they may bid so much that very little profits are left. I am seeing this a lot in the Phoenix area where trying to get a property at 70% of ARV or less is proving to be a big challenge.

Edited: 06/26/2010 at 10:28AM

Scott Hubbard

Rehabber · Tucson, Arizona

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Icon_minipost Nov 10 '09, 12:04 PM

Originally posted by Greg Park

Hello, when people buy at sheriff sales and win, what do they do with the property? I've heard of people making $100k+ off of one deal.. is this possible? If so, what strategies need to take place to pull this off. Thank you very much.

If your thinking about buying in Minnesota, you have a 6 month redemption period to wait it out. A lot can happen in that period of time, so you will need to take that into cosnsideration. In addition, your winters are very slow times for real estate. Thus, if you were to buy, there would only be a small window of time in which to do it.

I concur with Vikram, in Arizona, the sheriff's sales are filled with experienced investors and if you beat one out, then you probably paid to much for the property. Auctions are not user-friendly and I have personally seen people buy homes for more than it would have sold for as an REO.

With that said, there are opportunities but you need to do your homework. I would recommend joint venturing with someone that has experience, learn the ropes, then go out on your own.

Good Luck

Edited: 06/26/2010 at 10:28AM

Jim Wineinger

Real Estate Investor · ten mile, Tennessee

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Icon_minipost Nov 10 '09, 12:23 PM

From your original description it sound like you are talking about a tax sale which in some areas are conducted by the sheriff and often confused with the normal term of a sherriffs sale as far as a foreclosure goes.

The only way to make 100k+ on one deal is to get a property for 100+ less than what it is worth.

It is possible, yes, but as unlikely as finding an $1,000.00 on the ground which is legal tender.

Edited: 06/26/2010 at 10:28AM