Re: Redemption periods

Posted by Bill H on June 21, 2005 at 19:42:22:

In Reply to: Re: Redemption periods posted by Steele in Minnesota on June 21, 2005 at 11:52:27:

:
: : 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

Hi Steele:

I agree with you. She asked a simplistic question and I attempted to answer is in a simple manner. No need to further confuse her with all the facts that you presented.

Was just trying to show her that the redemption period is not the primary reason for not buying at auction.

Yes, if there is equity and it is a viable deal....by all means buy at the auction.

I tried to explain to her, with the car on three wheels and a milk crate, (have seen that a LOT) that she has little to no chance to see the inside or know the condition.

And: the BIG thing I was seeking to get across to her was that she really needs education and do her homework. Unfortunately this business is NOT like the TV Gurus make it out to be.

Most beginners fail to read the small print under each success story the Gurus put on ...it says" UNUSUAL results .... Yours will VARY."

Good luck...thanks for you comments.
Bill H

Follow Ups:

• 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

: 
: Hi Steele:

: I agree with you. She asked a simplistic question and I attempted to answer is in a simple manner. No need to further confuse her with all the facts that you presented.

: Was just trying to show her that the redemption period is not the primary reason for not buying at auction. 

: Yes, if there is equity and it is a viable deal....by all means buy at the auction.

: I tried to explain to her, with the car on three wheels and a milk crate, (have seen that a LOT) that she has little to no chance to see the inside or know the condition.

: And: the BIG thing I was seeking to get across to her was that she really needs education and do her homework. Unfortunately this business is NOT like the TV Gurus make it out to be.

: Most beginners fail to read the small print under each success story the Gurus put on ...it says" UNUSUAL results .... Yours will VARY."

: Good luck...thanks for you comments.
: Bill H


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