$54,000 in FOUR DAYS!!
Paul Cannif lives way up in beautiful Massachusetts. Paul bought Ted’s home study course and went right to work. He attended an Auction in Lowell Massachusetts but before he went he did all of his research. He was able to go online to the Clerk’s office to get much of his research completed, the assessed value, what was owed on the Property, etc. When he went to look at the property, (Ted’s number one rule you should always do), he found the house around the corner was listed for sale. Wanting to get an idea of the comparables in the neighborhood, Paul called the listed realtor and found out this home was listed for $216,000.
When Paul got to the auction on October 6th, there were only two other people there. Paul says they are the same people he sees over and over at this auction. The assessed value of the property he was interested in was close to $216,000 which was verified by the comparables in the neighborhood. The opening bid was $128,000. No one said anything. Then finally, Paul said, “Yes!” and…. he was the successful bidder. Paul had a property!
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In Massachusetts you cannot have access to the property before the auction so he had never been inside of the property and it was occupied. After the sale, Paul and his wife Sheila knocked on the door and explained to the couple that they had purchased the property at the auction. Paul says his wife really handled the couple and what started out as a rough conversation soon smoothed out. They gave the couple until the end of the month to move out, and extended that a few days when they had difficulty meeting the deadline, but all went well.
It took awhile, but they finally closed on January 26 due to title search issues and being held up by the auction company the county uses. All the t’s were crossed and the i’s were dotted and Paul and Sheila were the owners of the property. Paul did quite a bit of work on the house before they had even closed, which Paul admits is risky. In addition to new paint, new carpet and clean up, Paul completely rehabbed the kitchen with stainless steel, and new cabinets and redid the bath as well. He restored the hard wood floors and installed cherry laminate floors in the kitchen. Paul says it is now a cute four bedroom, one bath with about 1,400 square feet and a brand new roof. Paul tried to sell it on his own but ended up calling a real estate agent he knows who wants to work with Paul on a regular basis. The comparables came in at $182,000 to $199,000 after more market adjustments in the area since the original comparables before the sale.
They listed the property for sale on Wednesday for $199,000. They had 20 showings on Saturday and sparked a bidding war. On Saturday they accepted an offer for $207,000 which was $8,000 over their asking price. The home appraised for $216,000. Here’s how the numbers worked out:
Purchased at Auction: $128,469
Fix Up Costs: $25,000
When I asked Paul if he would do as much work on the house the next time, he said he might, but he would like to find one that needed less work. He is already researching the next auction.
If you are interested in jump starting your Tax Lien Certificate and Tax Deed education, call Kim or Ashley at: 321-449-9940 for more information on upcoming Workshops and Seminars.
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