In 1932, a Mr. George Lycurgus became the lucky owner of a hotel for just $300. He happened to be the only bidder in the sale of foreclosed property. If you think that is incredible, then keep your Tuesdays mornings free and attend sheriff sales. These sales take place every first Tuesday of every month at 10 a.m. and one can get themselves property in good condition at ridiculously low prices. Most counties have a listing for the properties that are going to be sold each month.
One of the advantages of buying foreclosed property at the sales is the high potential for profit that exists. The bids normally start very low, which means that the highest bid ends up being priced well below the market price. In some cases you may end up being the only bidder. Usually, there isn’t much competition at the sales for the foreclosed property. Sometimes no one shows up at all to bid. This could be due to bad weather conditions, lack of transportation, or other reasons. This creates an incredible chance for a potential investor to acquire a nice piece of real estate. This is especially favourable in these economically distressing times where not many people have surplus money to buy property.
Since the sale is usually advertised at least a month or two months in advance, this gives the potential buyer ample time to do research and get their finances in order. You can meet with the homeowner and get too see the property up close before the owner moves out. This will give you an advantage over other investors. Potential buyers are legally not allowed to see the inside of the property before it is sold unless they happen to be passing by when the owner of the house is still living there to ‘visit’ them. Then they can walk around the house and inspect to see if it is in good condition.
To help you get a feel about what goes on during the sales, you can choose to attend a couple of sheriff sales just to observe what goes on.
