Trent Hills waterfront

[netpred]

Was with some contractors late yesterday who will be doing entranceways and grading for me on some of my winnings.  Got to talking about tax sales and this structure (#14) that apparently they had personal knowledge on as they recognized me from attending some of the bid meetings together.  

They are well know locally and have over 30 years experience.  

ie. the one that went for $67,000.  They estimated that it would cost $250,000 to rehabilitate.  ouch; could get a new home for less than that.  

Ouch!

I don't know whether to laugh or cry for the poor guy who "won" this one. I'm afraid the same story for the winner of Quinte West.

[26.2]

I don't know whether to laugh or cry for the poor guy who "won" this one. I'm afraid the same story for the winner of Quinte West.

This is the problem.  OTS and those other "educational sites" promote the tax sales game as easy money making.  They advertise what appears to be great deals. Show past deals that look great,[ they hooked me]. You seldom hear of the problems except here.  Then you hear us whining about the bids going too high.  If the problems, pitfalls, and bad buys were displayed we wouldn't get every tom dick and harry trying their luck on tax sales.  If these guys knew the amount a real research that was required half of them would drop out.
What we need are some news articles in the paper about "tax sales gone wrong."  Not fabrications, but real stories.  I am sure there are lots out there to counter those that are sucking the unaware in. Does anyone want to share an unfortunate tale?

[pjdd]

I totally agree. I think in many cases people just get carried away with their bids. I have seen it before and I am sure it will continue. OTS always have in the upper window (you could have got this place for less than third of the assess value. HMM!)About Mississaga 227,111 OUCH!!! I did not see it but I heard it was a piece of crap. Again I think alot people do not do the research necessary and just again get carried away.

[Pfm1011]

I dont know the property in question so cant comment on its value  but in regards to overbidders....Don't feel sorry for people who get screwed and overbid..they are just greedy and stupid and have no one to blame but themselves. ( nothing wrong with greedy..its the stupid thats the problem)  These people screwed you out of a deal by overbidding.... They are not lambs led to a  slaughter..they are wannabe lions who bit off more then they could chew and choked on it  good riddance



I totally agree. I think in many cases people just get carried away with their bids

There is no reason to get carried away as we have weeks for research . This is not like an auction with  " heat of the moment"   If you overbid at a taxsale  it is just stupidity and greed.

That said ..many time we think something is "too much" but is really still a good deal to whoever bought it. For example someone mentions quinte west was expensive. If the person can re-sever the lots ( which I would bet then could easily) then they have a nice little profit .  It was too expensive for outsiders like us but  for a local it may still be a deal

remember...when I win a bid, everyone thinks I overpaid and when I lose I think the winner overpaid

[Dave2]

My concern in cases like this also revolves around what is to be expected in cases of conduct of members of this board.  Refering to an earlier post on this subject:

At that point I had a decision to make and I decided not to compete but I did pass the heads up to some members of this board via private message who I owe favours too.  In cases like this I restrict the info to a few to maximize its value and there are some deserving others who did not get favoured this time but wll in future.

Because of the accidental misclassification this opens up a greater potential for a reasonable purchase price.  I am cautious about structures generally so did not want to pursue this one myself but I did pass it on.  To the best of my knowledge no one from this board was successful, but it does show the risk even when good intentioned.  You have to do your own due diligence which is difficult for structures because of inability to examine properly.  

I still think one of board members a couple of years ago had the best inspection idea of having a couple of pretty girls along to get access to a site.  

Disagree with PFM on one item.  Most of us regulars including the writer wait until close to the bid closing before we get serious on the good ones because we expect them to redeem.  Thus we normally have a couple of days and not weeks.  With structures that is when it can get tricky.  

I do agree that if the underlying land value is sound and worth the price a structure that can be rehabilitated can be a real bonus.