Successful Sheriffs Sale (Was the only guy there!)

[Sam Erickson]

I successfully won the auction for a property that went to Sheriffs Sale in Racine County.  The outstanding balance was $116,900, however the open bid was $124,167.  This caught me a little by surprise.  I had watched some in the past and most of them the opening bid was the amount on the notice of foreclosure.  I asked the sheriff way this one was more and all he could tell me is thats the number the bank set.

In the end it all worked out though.  My max purchase price was $125,000.  Since I was the only guy there I was able to buy the property for $1 above the opening bid, so $124,168.

Its going to take anywhere from 5-10 business days for the court to confirm the sale. Once that happens I have 10 days to bring the remaining 90% owed to the court.

I'm very excited to get started on the rehab.  The property is located in Union Grove WI (town I grew up in).  I was very familiar with the property and believe I knew some information that no one else did.  The property actually caught on fire 2 years ago and was completely redone with insurance money.  I also was able to catch the banks maintenance guy that was there and look through the front door.  I'm anticipating $15,000 rehab, like I said everything was redone 2 years ago.

Below are my anticipated numbers:

ARV: $200,000

Purchase: $124,168

Rehab: $15,000

I'm right at 70% of ARV which I'm happy with. I do have the risk that the rehab will go high but knowing what I know and what I saw I'm optimistic that I can keep it at $15,000.

Hopefully I'll be writing another success story for the actual flip in the near future.

[Sam Erickson]

UPDATE:

So I received some additional paperwork from the lawyer who is responsible for this sale.  It got way more detailed about the numbers.

@Don Colagrossi I did in fact pay fees, just didn't know it.

As I said in my original post the outstanding balance was $116,927.83 however the open bid was $124,168.78.  Below is the reason for this.

$150.00  This was a "Sale Fee"

$167.15  This was the cost of Publication of the sale

$100.00  Brokers Price Opinion

$3,199.87  Additional mortgage interest from the time of the filing (July 2015) till the sale     (Feb 2016)

$3,623.93  2015 RE Taxes.  Was actually happy to see this, I thought I was going to have to come out of pocket for this.

Add all those up along with the original mortgage balance of $116,927.83 and you get a total of $124,168.78 which is what I paid.