I have to think these are people who aren't fully aware of what it means to buy from the tax sale - there are a lot of risks. For one, you can't see the inside of the house, so you really have no idea what you're getting. The house we bought a few years ago was a burn out. So we had to completely gut it and rebuild. That's a lot of time and money. And the only way we were able to do that was because we got it so super cheap. In the end it worked out because inside it was a brand new house - from the sheetrock to the floors - but again, it took time and money.
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| Before |
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| During Clean Up |
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| After (our tenants are fond of porch chairs) |
Sometimes the owners are occupying the home and you have to get them out. That could be a nightmare. They're angry that they've just lost their home and don't want to leave. Some of them destroy the house before they vacate. There could also be liens on the property or title issues that can take a long time to work out. It's just not a clean process. So you have to buy cheap enough to make it worth it. And these people were not. One of the properties sold for $60,000. Cheap for a house but not cheap for a house you've never seen or for so many potential complications. We're just not willing to invest that much money into something blind.
And it's crazy too because you have to pay cash for them. No financing - you have to buy them outright right then and there. You can't even leave the premises to get the money. And it's just hard for me to fathom the amounts of cash some of these people have access to. I know one guy had to have spent about $100,000. Who has that kind of money laying around?
We still have a few more on our list but I'm not that optimistic with the numbers that these people are throwing out there. My only hope is that maybe the big spenders are done spending...
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