What is stopping you from making your first bid?

[Rob]

What is stopping you from making your first bid?

Do you want to get started buying tax sale properties and aren't sure how? 

Are you worried about liens you may not be aware of?

Does the process seem too difficult and involve too many steps?


Let us know your situation and if you plan to put in a bid in the future.

[Gmangg]

Well, Like I had mentioned before I am looking to put in a bid for a tax sale that is currently occupied. Deadline for the tax sale is June 15th. I have done a title search and everything looks good so far. Picked up my Tender Package and I have contacted my lawyer about a possible eviction. I also talked to my insurance broker about insuring the property if I win it and even though there may be other people living there I can still insure the home. Anyone familiar with home insurance after purchasing a tax sale with people still living in home?

I will also keep you guys informed to see what happens.

[jreist]

The reason we became interested in Tax Sales was to find property in the country. My wife enjoys gardening and is very interested in growing and hybridizing daylilies. We will be retiring in 10 to 15 yrs and it is easier to make a move know. 

The price of land is out of our price range so Tax Sales is very attractive. Unfortunately we have not found land in the area we are interested in. So we have recently started to look at bidding on property with the hope of finding property as an investment, either to hold, rent or sell.

We have bid on a few properties and up to now been not successful or had the sale sale cancelled on us.  We went up to Addington Highland and found a couple of woodlots which we bid on as a hold as a managed woodlot as well as recreation and possible resale in the future. We came in 4th for one property and 2nd for the other. We received a notice today that if the other bidder does not come up with the rest of the money in 14 days its ours.

Looking at the woodlot we took a long walk on a logging trail next to the property that could give access.  I parked at the side of the road to check another access and told my wife to wait while I walk in. I took a compass reading and headed in after I found the property boundary I went back using the my compass but could not find the road after panicing I finally came out on the logging trail.  Can anyone recommend a good GPS.

[Topwater]

Do you have other results for Addington? I made a bid and waiting. It was the property #7, 0.52 acres by the Mississippi River. Thanks.

[dave65432]

i don't really know what is stopping me from doing this.

i think the first thing is that when i read something like this:

Property Description:
Roll # 3650-110-004-09907 Lot 3 S King St, Plan 177 in the Municipality of Chatham-Kent, Province of Ontario as in Instrument Number RA28588. P.I.N. 00872-0069 Land Titles.

i have absolutely no idea how to tell what this place looks like. i know part of this whole venture involves driving out and checking things out, but honestly i wouldn't even know how to start. i took the above example off ontariotaxsales.ca, by the way. how do i know where "Lot 3 S" is on King street? Or is that 3 South King Street? What does Plan 177 mean? What is a Roll Number? A P.I.N. number? Are these referring to maps I might have access too, so I could possibly get ANY sort of rough idea about a place prior to getting in my car and driving up and down Ontario looking for things that could be construed as 'vacant property'?

i started looking into this yesterday, so chances are i'll be able to answer my own questions soon enough.

[ODURK]

well, as this is all entirely new territory for me, I'd have to say that first impressions are that it seems like a potentially volatile situation and perhaps a touch laborious, especially if there are problems with evictions, etc. Also, what appears on the surface as an opportunity to make a quick profit, looks like a fairly drawn out process requiring a lot of patience. Tendering a deposit that must be held for a year in order to get the tennants out doesnt equate to the fast-paced, quick-proft impression one gets from the infomercials...I suppose it's just a matter of time and the research required...

[gap]

I've been reading through that What is stopping you section, and it strikes me that most people still let fear inhibit their success.   I've been reading/following the Rich Dad books and website, getting involved in some of the cash flow clubs, going to the investment meetings, creating my own small investment group for women. then ultimately getting involved in tax sales.   I had been clouded for many years by the varied thoughts:  "I could never do that", "That doesn't work in Canada", "Nobody would approve me for another mortgage..", etc. 
Strangely enough, I had never let this negative thinking inhibit my success in my chosen field of work, or in my life in general.   It was only after I became adamant that my famiy was going to have a cottage that I pounded the pavement to make it happen, knocking down all the obstacles that flew in front of me, one by one, even though the same logical obstacles precluded the cottage dream.  But, I didn't let the negative thinking close of my thought process.  Aftger doing a lot of research and locating a lot that others didn't like (it had a huge tree lying across it and so it was hard to visualize a home in its place for others, I guess).  I jumped on it mostly because it's measly few dollars was what got me into the market.  THEN, THE MUSKOKA BUBBLE GOT HUGE.   And, I made a pile of money I would have never made if I had let the obstacles overcome me.   Since then, I have used the now large equity I have in the property to make other profitable (and less obsessive, more due diligent) choices for property, including a small house on a tax sale for 12k (needs lots of work, but still  - where else can you get a house for 12k?- and a beautiful lot) and two lots (I think) in Callander, Ontario (the last tax sale, I've only heard I was the winning tender on both by a small margin but the lawyer for the municipality still has to check things out so hasn't declared the winner formally.  This continues my equity ball rolling and increases my chances for a stable and comfortable environment and enhances my ability to give to worthy causes and secure my kids' futures - they are both disabled. 
Best not to be afraid and go for gold (with your homework done, of course).   It's not labour intensive, just a bit of a part time job, and yes, you can just break even, but even that will allow you to learn from the experience and hone your skills.   It's not complicated to read, just call someone and ask.  There are so many ways today that are great ways to explore and enhance your information bag...and the drives to lovely parts of Ontario have been nice, too!

[kcu]

 Since then, I have used the now large equity I have in the property to make other profitable (and less obsessive, more due diligent) choices for property, including a small house on a tax sale for 12k (needs lots of work, but still  - where else can you get a house for 12k?- and a beautiful lot) and two lots (I think) in Callander, Ontario (the last tax sale, I've only heard I was the winning tender on both by a small margin but the lawyer for the municipality still has to check things out so hasn't declared the winner formally. 

Hi Gap,

I think your approach is great. Too many people get discouraged and stop, before they can get a real chance to be successful.

I have a question for you.
I assume, in your post, you are talking about 0.4 and 1 acre lots in Callander.
I am curious, what would be the value in a lot where you cannot build anything?

You see, if you want to build anything or sell the lots to a builder, they must be at least 2 acres in size to get a building permit. (for this municipality) And these lots are just too small. I mean, if you are buying just to get experience, it is great, but what value do your see in these lots.

Please do share your thoughts.

Thanks.

[gap]

Hey,
Yes, they both might be a problem to build on because they are zoned rural - however, according to the zoning and planning officials it might be possible to have them rezoned, or easier have a minor variance applied.   The smaller lot was once a regular lot and there are other houses in the area which are built on.  In the late 70s there was a small problem with the boundary and some confusion.  In addition, all the houses in the area have abutting lots which are zoned residential - and even though the current zoning is rural, most of the lots abutting are residential and/or have already been given minor variances as Terrace Road was once Highway 11  - in fact the locals still call Terrace Road Old Highway 11.   So it is possible to get a variance, given the neighbours, the existing area, the fact that nothing else is rural in the area, it was once considered buildable, etc.
The second lot is more interesting as it's bigger (1 acre), high and dry and actually in the "Himsworth Crown Game Preserve" along Hill's Siding Road and just two minutes off of the new Highway 11 four lanes.  Many small lots within the reserve and around the rest of the road are all under the limits for zoning and residential because of minor variances.   This would make a good case for getting a minor variance.   In addition, it might be feasible as a landing spot for bird, moose and deer watching for naturalists as there is an incredible amount of white tailed deer and moose in the preserve.  It could also be of interest to the crown as they have been resisting de-regulating other residences within the park.  Given that it is also off the new access of Highway 11, it has also seen incredible development in the area, so perhaps there would be an argument there as well.
All in all, even though it looks tough, I considered it worth the risk, and a great challenge.
I'm beginning to love challenges, so we'll see.   

[kcu]

Wow!

It sounds like you did your research beyond the basics.
Where do you find the time?

Do you visit all of the properties you are bidding on?

[brassman]

I am looking for something very close to my cottage area. Sales come up once a year if that. It is something that I may never do unless something really appealing turns up. Right now there seems to too many seekers out there. I have never purchased through tax sales but I have bought three cottage lots over the years that were considered extremely sub prime. They were all completly overgrown and two of them were extremely steep. Two of them were water access. The one that I still have is in a shallow swampy bay. All of these properties were bought to keep and not to flip.Only one was actually listed for sale when I made an offer.All of these lots turned out to be very nice locations once they were developed.
 Every property has problems that lower its value. What you need to do is look at the drawbacks that a property has and see how many you can overcome and at what cost. Each problem you solve increases your properties value.
Badly overgrown? Cut some trees.
Steep incline? Perch a split level building decending the hill.
Dilapidated building? It may be grandfathered in a location where a building permit is hard or impossible to get.
Shallow bay? dredging permits are routinely granted for boat channels and swimming areas.

[speedfreeksteve]

Shallow bay? dredging permits are routinely granted for boat channels and swimming areas.

I would disagree with the wording on that one. Dredging permits are VERY difficult to get. Believe me, I've been trying and turned down myself. So has a number of people on my lake.

Paying for the actual dredging is far from cheap as well.

[Frank]

I had one dredged about 15 years ago and had a bit of a problem getting it.  It was re-inspected a few years back by the MNR to ensure that I didn't go any further, and I was advised that if I applied today - I would have been turned down.  They're making it harder to alter shorelines.

[speedfreeksteve]

We were shocked when we didn't get approved. We only requested a permit to do abit of dredging for a 20 foot wide channel. That part of my frontage is pretty silty and we just wanted to make it abit safer and comfortable especially for kids.

The ministry came to look at it and said "no". We asked why, and they said if they gave us approval then they'd have to give everyone else on the lake approval if they applied for a permit too. Really made me wonder why they even bothered coming to check things out if they were going to turn us down using that criteria anyways.

[brassman]

I must admit that I never went ahead with the dredging permit but when I requested the paperwork from the mnr they sounded really positive if the dredging was for boating channel or swimming. I stand corrected.