It’s definitely no secret that many property investors made big bucks with government property auctions. Because the market for government real estate is just as exiting as its ever been, investors will do well to be hawkish on finding deals here.
Auctions of government real estate are done on property which the government owned as well as seized real estate. It is really the property auctions where the real estate has been confiscated that most investors pay close attention to. The government have no financial interest in the property sold and you’ll therefore find the ‘item’s going for giveaway prices.
Although you’ll find that there are a large number of state and federal agencies that confscate real estate in the US, only a fraction of them are worth your attention. Let’s take a closer look:
Department of the Treasury
The treasury are charged with the task of confiscating various goods and real estate for an array of different government agencies. These also include activities on behalf of the US customs and US Secret Service. This is usually as a result of criminal investigations.
Luckily for us investors these auctions are open to the public. This obviously also means that competition can get pretty intense. This ‘bridge’ is easily crossed. Calculate a price beforehand that you are willing to pay and don’t bid anything more than that. Following the same strategy of other government agencies, these auctions are normally announced online and also in widely circulated newspapers.
United States Marshall Office
This office is responsible to seize and auction real estate confiscated on the back of criminal activities. This ‘asset seizure’ function is done for and on behalf of a number of different departments like the Drug Enforcement Agency, ATF, etc.
IRS
Just about everyone is familiar with the Internal Revenue Service. Their man function is to make sure corporate and other citizens adhere to the country’s tax laws. It’s a truth of society that many people evade their tax payments and they are almost always caught doing so. This gives rise to the IRS confiscating their property items and selling them of at a government real estate auction.
For investors they key recurring theme for these auctions are the fact that they can partake and that it provides a platform for them to buy properties at sometimes shockingly low prices. Off course don’t expect to walk into the first auction and make a killing. Even though this is not inconceivable, you usually need to apply yourself, attend the auctions as frequently as possible and the result will be a great real estate investment.
Mail this post
Posted under Local Real Estate News
This post was written by admin on August 12, 2009
