A House For Sixpence…
I tried to buy two houses today. I would have settled for either one, but unfortunately ended up with neither.
I had prepared for several weeks; researching lien holders, visiting houses and taking pictures, checking property assessment records, narrowing down the list of a hundred houses available through the San Joaquin County Tax Auction down to two. Only those two met my criteria; fixer-uppers in a decent area and condition, without environmental hazards, a starting price less than they were worth, and available after the redemption period expired.
I woke up at 6:00 a.m., got in the car around 6:15, and drove an hour and a half to get to Stockton. Since the auction didn’t start until 9:00 a.m. at the local civic auditorium, I had plenty of time to locate the important stuff; the auditorium, my bank, a drinking fountain, and an accessible bathroom. Thank God I did that (locating the bank, that is!) because when I began the registration process at around 8:00 a.m., they denied me access, saying that I needed at least $10,000 in cash or other negotiable funds in order to prove I could pay for any properties I might win, notwithstanding the fact that the instructional preparatory paperwork allowed payment after the entire auction ended and didn’t mention having $10,000 in your pocket.
Oh, sure! I carry $10,000 in my wallet all the time. Hello? I’m not exactly Bill Gates, and that’s not exactly pocket change.
So, it was almost 8:30 a.m., the auction was slated to start at 9:00 a.m., and my bank didn’t open until 9:00 a.m.. Since I couldn’t be in two places at once, I figured I had to try something. I walked a block away to my local bank branch, and hung around. About a quarter to nine, employees started arriving to work and I stopped two of the girls and asked to speak to the branch manager. They obliged, and I told the branch manager through the side door that I was in a jam and that I needed to have $10,000 to take to the county government offices in about ten minutes.
“Would you mind opening the bank early just for me?”
*smile*
If I had dimples, I would’ve used them, too.
She relented. Once again, thank God I tried that because the checks I brought with me weren’t good anymore (older line of credit checks that they apparently expired automatically without telling me) so, after three tries, I had to put the $10,000 on an empty credit card with a $50,000 limit. If I’d waited until the bank normally opened and gone through the same rigmarole, I probably would have missed the auction.
At 8:57 a.m., money in hand (heavy police presence all around so it was safe), I dashed back to the auditorium where I cut in a line of about 40 to 50 people, showed my money, and received my placard: bidder number 1 (I had already signed everything when I was previously first in line.)
About 250 people in the room, more than half observers, learning the process, trying to figure out what to do. Most of the veterans, like myself, are pretty closed-mouthed — we’re not really that interested in educating others who will eventually be bidding competitors. Late-night TV infomercials sell education packages on buying properties through tax auctions, but they don’t tell you that the methods they propose don’t work here since California is not what is known as a tax-lien state. A lot of people have lost their life savings by following instructions given by these infomercials. Don’t be one of them.
Anyway, sixteen properties left on the block, two I was interested in, the first I didn’t want to pay more than $55,000 for, the second worth no more than $50,000 as is. The auctioneer began, obviously a novice as she could barely keep track of the bids let alone the bidding numbers. She was equally confused and confusing.
She should quit her day job.
It’s easy to spot the long-time veterans at this; the suits, the briefcases, the reams of paper. A few others I recognize despite the Hawaiian shirts, the slicked-back coifs. Me, they think an easy target. I dress casually — Levis and denim shirt, tousled hair, unshaven — asking seemingly naive questions, putting them off the game, pretending I’m a different kind of player. My only potential giveaway is the clipboard I carry. There are four types of bidders: the veterans, the casual bidders, the casual investors, and the ardent wannabe homeowner. When I bid, I don’t want them to know I’m a veteran, a suit, a Hawaiian shirt, just like them. It’s this fourth group, the wannabes, that I emulate. The fourth group that the suits don’t bid against. Call it courtesy, call it knowing that they don’t have a chance so they might as well let it go at a reasonable price. It is a game, and I’m a player.
As usual, it worked. I outlasted the shirts. I just didn’t outlast the casual investors this time.
An hour later, I left, disappointed, heading back to Wells Fargo to return the no-longer-needed money. The auctions were hotly contested, but the first house eventually went for $57,000 and the second sold for $66,000. Neither too rich for my blood, just past the comfort level of money I wanted to spend for either property considering the amount of work needed to get them back into shape for resale on the open market. I’m in it for the money; once that mathematical threshold is met, my interest is gone, because I won’t put my profit margins at risk.
I arrived with dreams of potentially buying both properties, and left with a slightly frustrated sigh and an interest fee for “borrowing” the money for an hour and fifteen minutes. No wonder I call them Wells Chargo.
I was at work by 11:30 a.m.
Oh, well. Maybe next year. Maybe I’ll wear shorts next time.
1st of all if you live in florida, you can not find homes for the prices they advertise tax lien get rich programs on florida tv stations, yes it is all a lie,,, they advertise many states and counties sell properties for pennies on the dollar,,, even if they do sell, those tax lien properties are sold to the rich at those auctions… The disabled and poor have no opportunities such as the ones advertised… The disabled are told they cant own real estate in florida even to suppliment their income,,, because they would no longer qualify for assistance on the small amount they are entitled to… The Government keeps the disabled with no opportunity to better their lives at all,,, I found you website on a search engine…! They give grants to the rich, and grants to farmers to not plant or raise animals, the goverment gives themselves big paychecks and accept PAC contributions, while they suffer the poor and disabled…! If you check the search engines you will find many that have got rich on tax lien sales and grants in the United States,,, but you wont find any that were disabled and poor forced to live on assistance programs… The United States does not offer equal opportunity… This entire GOVERNMENT IS A LIAR and CORRUPT TO THE CORE…The poor are told to seek help from a church and move into rental government housing units, that they many times close due to cut backs in funding…!