Re: Redemption periods

Posted by Steele in Minnesota on June 21, 2005 at 11:52:27:

In Reply to: Re: Redemption periods posted by Bill H on June 21, 2005 at 11:18:11:

: 4. No one bid on any of the propertys because of the
: 6 month redemption period.......WRONG...probably no bids because the propety is worth LESS than the opening bid.....do your HOMEWORK.
------------------------------------------------
While I strongly agree with the latter statement I can tell you that the former is not usually the case here in Minnesota where we also have a six month redemption.

Here there is many times good equity in the property. If it is in average to good condition. But there are a couple of catches in buying such properties at auction. First, one has to come up with the cash at auction (that rules out most right there). There is no 10% down and come up with the rest later. Second, you usually have no idea of condition of interior of house. Third, even if in good condition now, anything can happen to interior and exterior over the next six months.

Here most investors tell me that they don't buy at auction because of the cash up front (they have better uses for their money) and the many unknowns regarding condition over the six months of redemption.

They have already done their homework and wouldn't even consider bidding on something that has too high a starting bid. But that is not the reason in most cases.

Here, at least.

Steele in Minnesota

Follow Ups:

• Re: Redemption periods - Bill H 19:42:22 06/21/05 (1)
  • Re: Redemption periods - Mark Cicero 16:55:15 06/24/05 (0)

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Comments:
: 
: : 4. No one bid on any of the propertys because of the 
: : 6 month redemption period.......WRONG...probably no bids because the propety is worth LESS than the opening bid.....do your HOMEWORK.
: ------------------------------------------------
: While I strongly agree with the latter statement I can tell you that the former is not usually the case here in Minnesota where we also have a six month redemption.

: Here there is many times good equity in the property. If it is in average to good condition. But there are a couple of catches in buying such properties at auction.  First, one has to come up with the cash at auction (that rules out most right there).  There is no 10% down and come up with the rest later.  Second, you usually have no idea of condition of interior of house.  Third, even if in good condition now, anything can happen to interior and exterior over the next six months.

: Here most investors tell me that they don't buy at auction because of the cash up front (they have better uses for their money) and the many unknowns regarding condition over the six months of redemption.

: They have already done their homework and wouldn't even consider bidding on something that has too high a starting bid.  But that is not the reason in most cases.

: Here, at least.

: Steele in Minnesota

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