Someone commented yesterday, wondering why I’m in foreclosure all the time.
Foreclosure investors, in foreclosure?
Have you figured out why?
It’s a Strategy
I’ve got a feeling, Rob, your office doesn’t really understand what I’m doing. Or, more likely, thinks it has something to do with a scam.
It’s not a scam, of course, it’s a strategy.
I like auctioning off my properties.
There are all kinds of auction strategies, and I’ve played around with at least a few.
At one point I even hired an agent specializing in private auctions to list and sell my properties.
Today, I’ve got what I consider to be a better auction strategy . . . sell my properties at public tax sales.
Let the County Handle it
It’s really simple.
I look at tax sales as an excellent way to list, market, and sell my problem properties. It’s different from what other investors do, but then again, what do I do that isn’t?
When I say “list,” I don’t mean list in the MLS. Instead, I sometimes let county treasurers add my properties to their foreclosure lists.
I don’t actually market these properties by running ads or anything like that, I let county treasurers run those newspaper ads for me instead.
And at the auction, I let county treasurers sell my properties and by doing so eliminate closing costs and commissions and title defects and everything else problematic.
Need to clear title on a Washington property?
Running it through a tax sale works like a charm.
A Very Good Plan
It’s just a good way to sell properties that are otherwise unsaleable. Or, any property for that matter.
Letting my properties go to the tax sale as a strategy to profit from the resulting overage is my right and just a part of the plan. And, it can be a very good plan.
Selling properties at tax sales, by design, is a strategy for sophisticated investors who understand what they’re doing.
These same investors know the risks and how to minimize them (bidding on your own properties, for example). They know they can come away with nothing, or on rare instances, hit it out of the park.
And that’s why I do it.
Profits From the Sale
That’s also why I buy junk properties from sellers who’ve decided to walk away and just let the county have them for back taxes.
I give them a few hundred or a few thousand dollars to buy their problem properties and if selling at the tax sale seems like a good way to go, that’s what I do.
Sellers who’ve accepted my offers, deeded their interests to me and are paid in full have ZERO claims on the profits I’m able to extract from those properties.
And whether I sell them by listing them or auctioning them or letting them go to foreclosure tax sales already in progress, those profits are my profits.
Interpreting RCW 84.64.080 to say those profits are the property of someone other than the property owner insults the intelligence of us all.
In the arena,