As the Second Round of the Wayne County Tax Auction nears, I felt it was important to make new investors aware of the importance of doing your homework before bidding.
I started investing in Detroit real estate in 2014. Due to me being a licensed real estate agent, the Wayne county auction was the only real way for me to find and buy properties without any real restrictions. I had worked with Real Estate investors around the world for years, buying and selling property but never purchased anything on my own. So I decided to find a partner and dive in.
I had read many articles that talked about what a waste Detroit was but in the year of 2014 I discovered that not only was Detroit not a waste but that there were so many available properties to buy for really cheap prices under $10,000. Therefore, we decided to give it a try.
The October auction allows bidders to start the bidding off at $100- $500 minimum at that time and the bids would go up from there in increments of $100. So I watched for a few and then decided to place a few offers. I watched as the bidding prices shot up to $10000 in some of the better areas but I had already made up my mind to only purchase homes for $3000 or less. Really less because we only wanted to spend around $10,000.
For a moment it seemed as if I wasn't going to win anything until..... I said forget it and got emotionally involved because I hate to lose. ****I've since learned never to emotionally bid because you lose!!!***
I won the first 2 homes under $3000 and then I decided to do more driving and found a few neighborhoods that were still allowing bids that day. If bidding and driving was illegal I would have definitely got a ticket. Here I was driving and bidding at the same time while taking notes in the 48235 zipcode in Detroit. I had my phone out (no iPhone at the time) and a notepad, jotting down notes based on the exterior. This is how I won the last 2 properties. Of which we paid $3000- $5000 for both of those. Only to feel disappointed after driving back to the one smaller home to find a whole in the living room ceiling of the roof :( The one we paid he most for was pretty bad too with busted windows and filled with junk that would take days to clean out. The plumbing and water heater were also missing.... One could only imagine what the other 2 properties we'd "won" on the Eastside of Detroit would look like.
Well I'll tell you. They were both on the same block and one had a worn out tarp on the roof. :( This home had a beautiful brick exterior but was completely fire damaged inside. The roof had a few holes in it and the basement was filled with mold from the water damage. The second home looked occupied and unfortunately, appeared occupied. It took 2 months to get inside because the person claiming to live there said she'd recently purchased the home from the owner and wasn't giving it up. After speaking with her for a few months she finally decided to walk away.
We were really hoping we'd struck some luck here, but no!!! this home was filthy and smelled like a sewer and waste yard combined. I was unable to take photos because it smelled so bad. On top of that, there was no furnace, plumbing was bootlegged and no water heater. The woman claiming to live there had obviously lied or was squatting.
However, this would be the easiest project to start, so we started renovating this one first.
I've won both good and bad over the past 4 years of bidding. This is why I advise all new Investors---- DONT BID BLINDLY!!!-----
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In the video below I’m Sharing my Personal experiences detailing the “Ugly Side of Bidding in The Wayne County Tax Auction” From purchasing Fire Damaged homes to what you can expect when you win a bid! Watch, Enjoy, Subscribe and Share please 😉 Ask me any questions if you’re considering Bidding in the upcoming auction. #ericaismyagent #waynecountytaxauction #detroittaxauction #detroitinvestor #detroitinvestmentopportunities
