Rental Property Investor · Los Angeles, CA · Member since 2016 · 7 posts · 2 votes
Hi, I’m hoping to connect with an investor with demonstrable experience and success in acquiring parcels via the Los Angeles County tax deed auctions.
I’d like to add innovative acquisition strategies such as that to my toolbox to continue growing the portfolio in this time where land basis is so staggeringly high here in California.
Yes, I do own out of state already and am certainly aware of how much cheaper it is (in case you were preparing to inform me of such : ).
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
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Have you looked at the lists, see what the minimum bids are and what they actually sell for? Not sure if there are deals there or not. Typically this is a cash business, so do you have cash to invest and hold until you can resell and potentially also have expenses like taxes, insurance, maintenance? Are you thinking of buying lots of houses?
Have you looked at the lists, see what the minimum bids are and what they actually sell for? Not sure if there are deals there or not. Typically this is a cash business, so do you have cash to invest and hold until you can resell and potentially also have expenses like taxes, insurance, maintenance? Are you thinking of buying lots of houses?
Good callouts, but yes I’ve been investing for a decade now, I wouldn’t go into any deals without a responsible amount of reserves. I’d want to buy several houses, not at the point of buying lots of houses yet.
I say take the list, figure out your maximum bids the first go round, but don't bid. Watch and see what the properites sell for. See if your max bids would have been competitive. That will help you decide if you are a player for future aucitons. Keep an eye on your favorites. What do people do with them? Live in them, rehab them, rent them, resale them. If it looks like they're rehabbing, go buy and check with the contractors to see what the budget is/was. See if they put it up for resale or rent after the rehab is finished. Then rerun your numbers and see if there it is a profitable venture. Do this 2-3 times and then maybe at the 4th auction start bidding.