Property tax sales

Well, the last couple of days have been very interesting. I was made aware of an upcoming tax sale (today), and I was looking forward to selling this property after it was renovated. It was a very new experience, and it was difficult to gain a lot of information. It was brought to my attention by a friend of mine. With all that being said, I was able to provide some research and information that was very valuable in this type of investment opportunity.

Unfortunately, the tender was not the highest and were not able to secure it. We had some concerns about how the deal could/would be financed, so I tried to get involved in the deal myself. I ensured that this would be OK with my friend (I didn't want to step on any toes). I also promised my friend some compensation if my bid happened to be successful (probably something similar to what my commission would have been on the sale of his deal). Even my attempts were not enough, as the deal that went through was higher than both of the bids that I had an interest in. It was kind of a double-whammy.

Overall, this experience was very valuable. After going through the tender process myself, I have a better understanding about the process and more importantly about the due diligence required. It's a different process that most agents would not be involved in. Agents may be hesitant because there is no commission to be made on the purchase of a tax sale. The proceeds flow to pay off the liens against the property, not to an agent.

I see it differently. I see it as a chance to build a relationship with a potential customer. There is a good chance that a purchaser of a tax property will be simply using the property as an investment and will want to dispose of the property in the near future. It gives me a chance to sell this property for them.