BUYING SIGHT UNSEEN?

When you are planning to bid on any property that is going to auction, make sure you see it in person and evaluate its condition.

The biggest risk in buying Tax Deeds and Foreclosures is not being able to see the inside of a house. Some investors only "see it" using Google Maps and some, even worse, buy sight unseen.

This property looks good from Google Maps, but at closer inspection, the place is a disaster.

Let me say it again. Always look at each property personally or have someone do it for you. Google Maps does not always have updated photos and can’t give you a view of the interior. While the exterior of the property may look good, it does not always reflect what’s going on inside.

If no one is living there try and peek from a window. If you can’t see anything, then talk to the neighbors. They can hold a wealth of information on how the previous owners maintained the property.

The townhouse shown here was purchased by a competitor for $73K. The market value in this condition is $35K.

The market value of this property, if renovated, is $90K. The investor, so far is showing a $43K loss.

Real estate investments, auctions in particular, can yield very big profits but may also deal very painful financial blows. See each property and do your homework. Evaluate the risk and tread lightly, especially until you get some experience. Perseverance, education and careful planning in this business can make you very wealthy and provide great personal satisfaction.

Not surprisingly, the investor walked away from this “deal” and lost his deposit.