Is buying my first property at a tax sale a smart entry strategy?

4 Replies

BP Ladies and Gents, 

There is a tax sale coming up in a close by city where about 400 properties/lots will be up for auction. It will be filled with great deals but heard the hedge funds and investment companies come in and raise the premium so high it makes it hard for individuals (with moderate cash reserves) to get a steal. 

Any advice and personal experiences with tax sales (positive or negative) is greatly appreciated!

what until the end and their find are used up to bid on the ones you really want. Als you might wait till after to buy over the counrter. 

Be careful and know the Whole story.

In Michigan they leave you owing for 1 year of taxes in addition to purchase price plus sometimes city services also.

Probably not.  Unless you know All of the laws and procedures that apply you don't know the true risks and pitfalls involved, therefore you can't determine a proper strategy.

@Michael Fiducia   As others said you need to know the rules and the hidden costs. 

The only way to learn how competitive it is, is to participate or at least observe. I didn't really know much my first auction but i have learned and improved my business e every year. 

Only 400 liens is a pretty small auction and many of the large national players wouldn't even show up. The big out of state players do not like risk and do not bid on everything. You need to find the gaps, where opportunities exist that they skip.

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