871
General / Re: can we really make money at this????
« on: January 24, 2008, 12:55:41 PM »
I think everyone has different intentions and plans.
If you are looking to land a 500K house for 25K and immediately flip it...Go buy a lottery ticket.
I think most of the money is in long term holds as many properties have zoning problems etc. I think any piece generally will require lots of work afterwords IE rezoning etc. I went thru the last couple years of Hamilton results and actually found several houses where people sold the houses again within 6 months and made some nice money. Mind you they were purchase for 40 , sell for 65 . Not purchase for 40 and sell for 400.
Many on here are after northern acreage for long hold or own use. Just look at the last muskoka sale. bids like crazy but many overpaid.
Niagara someone picked up a 2 acre lot on Lyons Creek rd for 7 or 8 k, ( thats just beer money) could easily sell for 25 as It didn't seem to have any problems. So they did OK with that. Do a couple of those a year and you do OK. The whole diligence and process probably is less then a days work including walking the land so an eventual 15k profit for a day is a good day. Unfortunately every failed bid takes just as long so you have to add that in to your costing.
I think for many people its a hobby which hopefully will make a few dollars . Find land, do a bunch of research, study the zoning, etc then drive up and look at the land. Good way to get out of the office for a day. Then bid a few bucks and if you win. You could make 10 or 20 k in a few years. If you lose the bid, convince yourself that someone was a fool and overpaid and you were clearly smarter as you didn't overpay( mind you if you win ..you have to ask yourself if you overpaid and everyone else thinks you are a fool)
As a hobby, it beats watching reruns of Gilligan's Island. The Smith falls sale in the fall, Took the day off work. Me , the wife and the kid drove to Smith falls ( 5 hrs) checked out the land , visited some historical locks, went out for dinner. It was a great way to kill a day and get away from the office. Placed a bid but the sale was cancelled as the owner paid up ( imagine the nerve of that guy) . So no profit but a fun day.
A vast majority of the tax sale property never gets a bid as it is useless land and not worth the taxes owed. Of the ones that do sell its generally low money 10 to 20 k and long long hold but no risk as who really cares if you make a 10 or 20 k mistake in the big picture.
Any big money commercial pieces that are listed are usually toxic sites which the owners folded the corp. The failed tax sale is just the vehicle the city uses to transfer the property to the city and then to a developer who will clean it on a deal. ( Kingston). Be very careful on the commercial sites.
Also many parcels have no value to anyone but the adjacent land holder.
The tax sales arent a well kept secret that only a few people know about. Just look at this site , only a few posts but thousand visit every day.
Can you make a living doing this?..No... Can you make a few dollars? probably in the long term. Will you have fun?..absolutely. Can you get rich?...Absolutely not ...buy a lotto ticket instead.
If you are looking for big money..sit and wait as Im sure the Power of Sale market is going to skyrocket in the next year. We cant keep ignoring the US real estate and stock market forever.
If you are looking to land a 500K house for 25K and immediately flip it...Go buy a lottery ticket.
I think most of the money is in long term holds as many properties have zoning problems etc. I think any piece generally will require lots of work afterwords IE rezoning etc. I went thru the last couple years of Hamilton results and actually found several houses where people sold the houses again within 6 months and made some nice money. Mind you they were purchase for 40 , sell for 65 . Not purchase for 40 and sell for 400.
Many on here are after northern acreage for long hold or own use. Just look at the last muskoka sale. bids like crazy but many overpaid.
Niagara someone picked up a 2 acre lot on Lyons Creek rd for 7 or 8 k, ( thats just beer money) could easily sell for 25 as It didn't seem to have any problems. So they did OK with that. Do a couple of those a year and you do OK. The whole diligence and process probably is less then a days work including walking the land so an eventual 15k profit for a day is a good day. Unfortunately every failed bid takes just as long so you have to add that in to your costing.
I think for many people its a hobby which hopefully will make a few dollars . Find land, do a bunch of research, study the zoning, etc then drive up and look at the land. Good way to get out of the office for a day. Then bid a few bucks and if you win. You could make 10 or 20 k in a few years. If you lose the bid, convince yourself that someone was a fool and overpaid and you were clearly smarter as you didn't overpay( mind you if you win ..you have to ask yourself if you overpaid and everyone else thinks you are a fool)
As a hobby, it beats watching reruns of Gilligan's Island. The Smith falls sale in the fall, Took the day off work. Me , the wife and the kid drove to Smith falls ( 5 hrs) checked out the land , visited some historical locks, went out for dinner. It was a great way to kill a day and get away from the office. Placed a bid but the sale was cancelled as the owner paid up ( imagine the nerve of that guy) . So no profit but a fun day.
A vast majority of the tax sale property never gets a bid as it is useless land and not worth the taxes owed. Of the ones that do sell its generally low money 10 to 20 k and long long hold but no risk as who really cares if you make a 10 or 20 k mistake in the big picture.
Any big money commercial pieces that are listed are usually toxic sites which the owners folded the corp. The failed tax sale is just the vehicle the city uses to transfer the property to the city and then to a developer who will clean it on a deal. ( Kingston). Be very careful on the commercial sites.
Also many parcels have no value to anyone but the adjacent land holder.
The tax sales arent a well kept secret that only a few people know about. Just look at this site , only a few posts but thousand visit every day.
Can you make a living doing this?..No... Can you make a few dollars? probably in the long term. Will you have fun?..absolutely. Can you get rich?...Absolutely not ...buy a lotto ticket instead.
If you are looking for big money..sit and wait as Im sure the Power of Sale market is going to skyrocket in the next year. We cant keep ignoring the US real estate and stock market forever.