Just went to auction, most interesting one I've seen in awhile

[Mark Updegraff]

I'm always trying to learn more and network more here in Rochester NY. I decided to go check out a tax foreclosure that could be worth while. I've been to quite a number of these, but have only purchased a few. This one was cheap enough that I could take it down if the price wasn't getting pushed up too high. I did the title search, and it looked good and I was confident enough that I didn't need to my attorney's office to get involved.

Anyway, the bidding started at 1000 and quickly jumped to 10,000. Still a good deal. The tax judgement was for 15,500. The bidding went slowly and crept past the 15,500. Now we're at 20K and it is still moving up. Two very nervous individuals are bidding against one of the most prolific investors in Rochester. I mean he is out there bidding on everything good, and he's been in the game for a loooooong time. Anyway, he kept taking it up and up and up against this couple until he finally gave up at 30k letting it go for 30,200. I drove by the house, and in my opinion there isn't enough margin to make it worth it. The roof is 25+ years old, the windows are old and some broken, the garage is shot, etc etc. Overall fair condition at best. So, I'm giving it a BPO of 40-45K in 'as is' condition. With holding costs, closing costs, etc would you consider this a deal? I would think you would want a little more margin on something like this.

The best part of the story... the girl that won opened her purse FULL OF CASH and started counting it out to the ref. UNREAL!

[Pat L.]

Originally posted by @Mark Updegraff:

@Frank Oudheusden Single Family. I can't get over the image of that chic with a purse FULL of cash. wonder how she got it...

was she HOT & it was all $1 bills !!!

We had a young Marine buy a place & we held the HML

He admitted that he didn't have a checking account or a CC so the filing fees, legal fee etc were paid in cash as we proceeded with the close.

Then finally he laid out the balance of $13,000 in $100 bills. He has an interesting power washing niche he got into & we never turned him down on any future loans.

As far as buying high we have watched a lot of tax lien properties go for way beyond value just because the buyer wants to live in it or thinks they got a deal. The sad thing is many believe that the 'assessed value' is the true market value.