All Forum Posts by: Todd Neu

I attended my first sheriffs' sale 3 months ago and just sat back, watched the process, took notes, and afterwards, asked a lot of questions to the 2 deputies who put on the sale. There are a few departments you will want to make your face known in: Recorders office - helps you do a title check to see what liens/mortgages are tied to the property, Clerk of Courts - Check to see judgments against the property owner, Treasurer - Check history of properties with county tax/sewer/water liens. Sewer and water remain on the properties (run with the land) after a sheriff sale.

Bank owned properties will sell by 2 sales dates. In fact, I have not seen one go to a second sale. The banks want their PMI (Private Mortgage Insurance) money, which can take 2 - 6 months after a sheriffs' sale. So they will "buy" back the property, sit on it until the PMI pays out, then hire a Broker to sell the property. Sometimes, this is a better deal for you to wait until the property goes into the Real Estate Owned (REO) status, or repossession state. For example, if a property has a judgement of $100,000, and it is only worth $60,000, the bank will buy it back; get paid possibly $60,000 in PMI, then list it as a REO for $60,000. A buyer may offer $40,000 and the bank may accepts it since $60,000 + $40,000= the $100,000. The purchaser could then invest $10,000/$20,000 into the property and hopefully flip the property for $80,000, returning a $20,000 profit (minus taxes and real estate commissions). This is a very basic example, but is generally what happens here. To make money flipping, my rule of thumb is never have over 70% invested of the total "comparable" price of the home. Comparable is what "like-type" homes sell for in the area of the home. REO properties in the local area are usually listed with REO brokerages. 

The nice option about REO properties is that you can go through them and look at their condition.  Also, any back taxes have been paid by the bank, so that is one less item to consider. I would still pay for a title search. The bank also pays all realtor commissions, which around here are usually 6% of the net sale.

County owned properties are a different story. If you see on the sheriff sale list that the plaintiff is the Treasurer, then the property could go to a second sale if the minimum bid is not received. If it does not sell at the second sale, the property is placed in the county Land Bank and will be scheduled for demolition.

There is money out there to be made, you just need to perform due diligence and stick to your top price to pay for a home. Foundation issues are the biggest killer as they are very hard to estimate repair. Usually $11,000 per wall. Roofs and siding are not as hard. Finding a good contractor is key. Painting and wall repair can be done in spare time, but you need to keep track of your hours! Selling a home for a profit of $10,000 is nice until you find out you have put 50 hours per week for 4 months, then it took 2 months to sell it, while paying utilities and taxes and you end making $5/hour...

Hi Ruben!  I am curious about the  mistakes the Realtor made in the listing agreement?  You stated  central AC and sprinkler system.  Did they tell you these items did not go with the property?  Or were these items defective? 

For St. Marys property management, I would start with Kuck Realty.  Talk to Mike.

Good zip codes in Lima and surrounding area are 45806, 45807, 1/2 of the 45805, and 45801 are good starts.  Let me know what you are looking for, and I can help.