Indiana Commissioners Sales Strategies
Now, it’s time to get into the nitty-gritty specifics – strategies you can actually use when investing at Indiana Commissioners Sales. I’m actually going to have to split this one in half – too much good stuff to leave out.
In my experience, there is one, and only one, specific type of property you should target at Indiana Commissioners sales.
|You should look for single family houses that are occupied and in fair condition or better.|
Occasionally you will run across a vacant house that is obviously in great shape. In this rare case, you may want to make an exception to the rule. For instance, once I bought a lien on a vacant property that was listed with a Realtor. I went online to view the interior pictures and it turned out the inside was just as nice as the outside.
Also notice in the property description that I didn’t say “in a good neighborhood”. Good neighborhoods are obviously a bonus and you can sometimes acquire properties that have everything going for them. But if the property is occupied and in good condition, I’ve found the neighborhood is never a reason not to buy. You’ll see why later.
What Cities Have Properties Like This That You Can Find at Indiana Commissioners Sales?
Many cities, and indeed entire counties, will not have properties in the Indiana Commissioners sale that meet the above criteria. You’ll simply have to invest in another county if this is the case.
There are a lot of “rust belt” towns in Indiana that are full of these properties, however. And surprisingly, there are decent renters for these properties if you charge a low rent (which you can afford to do because you will have ‘stolen’ the property!). Here are some that come to mind (not a complete list by any means):
Gary/East Chicago (Lake)
Fort Wayne (Allen)
In case you haven’t heard, Indiana also is one of the few financially healthy states in the country right now. I believe this will attract a lot more business and jobs to the state over the next few years because other states will have to continually raise taxes to survive. Indiana just had a $1.7 billion dollar SURPLUS for the year.
Appreciation really is not an important part of our strategy here. But it sure is nice to have property that can really only go up in value since it’s near bottom now – along with conditions that would allow these towns to make a comeback.
Avoid Certain Occupied Properties at Indiana Commissioners Sales
You’ll also find occupied properties in totally nasty condition. I used to think that condition didn’t matter if the property was occupied, as the occupant would surely pay me something to stay. I was wrong.
I found that most of these occupants are looking for an excuse to get out of their filthy conditions, and asking them for even $100-$200 monthly rent was enough to motivate them to take action (move). Soon you’re stuck with the kind of property you were trying to avoid owning in the first place.
Don’t Get Sucked Into Buying Questionable Properties at Indiana Commissioners Sales (Without an Advanced Strategy)
As you look at properties, it is tempting to buy liens on property in bad condition because the minimum bid is so low – as little as $150 to buy the lien. You may figure that you could sell the property for at least a couple thousand as long as it is still standing.
With the real estate market bad right now, there is almost no demand for this kind of property in an urban area. This is because even properties in rentable condition are worth nearly nothing on the resale market. Therefore it’s impossible to come out ahead by fixing a decrepit property.
Eventually, you’d likely succeed in reselling the property for a few thousand to someone in the neighborhood with some lofty dreams. However, that sale price may not even cover your legal fees and closing costs. Junk properties in these areas are really just a waste of time and very stressful to own and try to sell.
Your goal should be to acquire properties that are already occupied with a renter – or close to being rentable – and to step in to collect the rent as soon as you get your deed. If you don’t want to be a landlord, you could also resell the properties for a small profit, but compared with the rent you can collect, I think it’s foolish to sell rented properties you get from Indiana Commissioners sales.
Why Rentable Properties Can be Purchased for Almost Nothing at Indiana Commissioners Sales
We’ve covered many reasons why decent rentable properties can be purchased for as little as $1000 in certain cities at Indiana Commissioners Sales:
-No institutional competition
-Bad resale market
-High minimum bids are now slashed
-County wants to get property on tax rolls
-Real or perceived bad neighborhoods
Now you know exactly what you’re looking for and where to find it in Indiana. In the second part of Indiana commissioners sales Part 3, we’ll go over additional critical strategies to make your Indiana Commissioners sales successful.
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Sites That Link to this Post
- Indiana Commissioners Sales – Element 3a | My view on taxes | December 21, 2011
- Indiana Commissioners Sales – Part 3a « Foreclosures | December 22, 2011