I remember it like it was yesterday…
June 4, 2019
I get a call from Frank Hugo around 7:00 am he says you coming to the tax auction today? Immediately I paused remembering I had other stuff schedule.
I say what time, he quickly responds 10:00 am. “Bet I ll meet you out there.” So I proceed to go workout get back to the crib freshing up and head to the auction.
A tax sale is the forced sale of property (usually real estate) by a governmental entity for unpaid taxes by the property’s owner.
If you didn’t know In some states, the government will seize homes with unpaid property taxes and then sell the properties at a tax deed sale, which is a public auction.
The property at a tax deed sale is usually sold for the amount due in unpaid taxes, plus fees and interest charges. It’s also known as a foreclosure-auction.
One of the simplest ways to get involved in real estate for pennies on the dollar.
I get to the auction and meet with Frank Hugo, he got the paperwork with all the properties owners, address, parcel number and sale amount.
Note I did not do my due diligence but my partner did, if you want to get into anything real estate always due diligence.
As the sale begin they started auctioning off foreclosure.
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
All these properties are able to be taken over immediately after purchase you also put down a lot more money, then you do in tax sale.
The Tax Sale..
About 20 minutes later the foreclosure sales ends, as everyone stood around waiting for tax commissioner excited to get to the second part of the auction, the tax sale.
He steps to the county court house steps, and everyone takes two steps in to get closer to the commissioner, and proceeds to start the bidding.
This only my second attendance, I came the month prior to watch my partner purchase a lot just. So I wasn’t new I had been exposed, but this time I got money in my pocket.
So its a whole different ball game because this time i’m not on the bleachers on the field. Honestly I didn’t want to use my money on this but if I didn’t I would of spent on something else so I invested.
Casually watching my partner and others bid on property. Is exciting to see, then I hear him say on our next bid.
We have parcel number F16 lot 032, Owner Mr, Barnes on Walker Ave lets start the bidding at $500, I look on and no one raise there hand.
If you know auctioneer talk all fast and shid going once, going twice nobody yet to raise there hand so I bid $500.
He points at me noting he got my bid turns back at the crowd, do I have $600? No one answers he swiftly says going once, going twice sold, to the young gentlemen in the back for $500.
Then I cringe and everyone looks upon me appalled like did this kid just get a steal. I’m thinking did I just spend my money. Lol. I definitely had other plans for it.
However, there will be nothing better I could have purchase with the $1,000 dollars I had in my pocket.
Frank Hugo walks up congratulates me on my first real estate investment. We’re full of excitement neither one of us seen this coming.
Everyone finished up ready to pay there dues. So how it works if you bid on a property you have three hours to make the payment or you loose the bid.
I decided to make the payment I went in clergy office, gave her my I.D she wrote up the property purchase sheet, I made the payment now this how it works.
I paid the property tax for the owner he/she had a year and a day to pay me back the $500 plus 20% interest or forfeit the land over to me.
I see it as win/win either I get my money back plus 20%, or I become a land owner. Whatever happens I’m happy.
After doing my research after purchasing the property the previous owner hadn’t paid the taxes in three years so it’s safe to say this is my land.
My first acre of land bought for $500 with a (FMV) of $5,000 fair market value.
A lot of my post are about money getting rich and wealthy and I must say this great way to use and invest your money if you want to get started in real estate.
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