Investors flock as Carolina Beach property is auctioned off
Investors from all over the country have flocked to Carolina Beach this week in search of bargain basement prices. A real estate auction company will auction off about $20 million worth of property in Carolina Beach. Friday interested bidders got a sneak peak.
A private investor bought properties along Canal Drive and Carolina Beach Avenue just before the real estate market collapsed.
“There’s thousands of examples unfortunately of this all over the country and particularly in costal areas,” said Bill Londrey pf Tranzon Fox Auction Company.
As part of the bankruptcy, all of the properties must be auctioned off, either piece by piece or any combination. The land includes open lots and parking spots, hotels and homes.
“This being a bankruptcy court ordered sale, it’s going to sell regardless of price, there is not a better opportunity,” added Londrey.
In a down real estate market with so much beach front property up for auction, regardless of the bid, investors have come in from out of town hoping that their price is right. Investor Bill Troutman said, “As an investor, that’s why I’m here. If they had minimums, I doubt I would show up.”
“It makes it more appealing because there’s potentially some good profit to be made out here because it might sell for a bargain,” said Sea Coast Realty’s Ian Rosenbaum.
“Londrey said, “Regardless of what these things sell for, either individually or in combinations, they’re never going to be worth any less than they’re going to be this week. So it’s all about appreciation from there.”
To encourage only serious buyers the auction company requires the winning bidder put down 10 percent right away, but even experienced investors don’t know what to expect.
“This many properties, this close, on the coast, and close to the waterway, there’s some opportunity here,” Troutman said.
Rosenbaum added, “It’s an unusual situation. It will be interesting to see what happens.”
Unlike a foreclosure, the winning bidder will get the property free and clear. That means they won’t have to pay any leans or back taxes. All bids are due by 11:00 a.m. on August 23rd.
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