Any tips for sheriffs sale of real estate

5 Replies

Hi

I was looking around the market and wanted to get my feet wet and try sheriffs auction of real estate. What type of properties should I be looking for. What General area also should I look in. Low tax neighborhood or high tax neighborhood. Also what condition should I be interested in. I do have a contractor on standby to do rehabs. What should I stay away from? And another thing. would the open market be better to do rehabs.

The very best advice I've heard about sheriff sales is that at the beginning, you should be financially comfortable with putting the initial money you've set aside for investing in one of these properties in a little pile outside the courthouse and burning it. If you couldn't burn that money without significant negative financial consequences for your family's lifestyle, you're undercapitalized for this kind of investing.

Originally posted by @Jim K. :

The very best advice I've heard about sheriff sales is that at the beginning, you should be financially comfortable with putting the initial money you've set aside for investing in one of these properties in a little pile outside the courthouse and burning it. If you couldn't burn that money without significant negative financial consequences for your family's lifestyle, you're undercapitalized for this kind of investing.

well I might not be as blunt.. but if the OP is asking these type of questions then I think they are a long way from be able to have success at a sheriffs auction.. those auctions are highly competitive and very difficult to break into.. not to mention inherent risk factors that dictate someone trying this should have years of experience in all facets of the industry before participating.. 

 

@Courtney A Hall

You might want to recalibrate your expectations. By definition sheriff’s auction properties are distressed properties. It takes 3-5 years of not paying taxes to end up at auction. Frequently someone has passed away and the family hasn’t bothered to pay taxes. That means a lot of deferred maintenance. Assume you will have significant renovations.

I would suggest you get a list of properties and do drive by inspections. Expect to look at a lot of junk to find that diamond in the rough. Deals can still be found.

@Courtney A Hall

Courtney, I have participated in the tax sale for the past 4-5 years. I am not sure how the tax sales work where you live but I am in WV and once the tax ticket is sold at the sale, the owner has about 18 months to redeem. The interest rate here is a fair amount so  some participants are hoping for the interest more than the property. 

I switched my purchasing strategy a few years ago and started concentrating on parcels of vacant land. My thought process on this is that it would most likely be simple to flip to a neighboring property owner or to buy acreage for timber. 

I just received deed to 92 acres that I picked up at the tax sale for $6,500+/-. I am currently receiving bids on the timber so we shall see how this goes!

-Kim