Investor Buys County’s Entire Foreclosure Stock
August 6, 2012
A Detroit metro area county no longer has to worry about their foreclosure backlog. For about $4.7 million, Bill McMachen, an investor in Macomb County in Michigan, purchased all of the county’s 627 foreclosed properties all at once and for one price.
The county’s treasurer was offering up all of the county’s distressed homes in a foreclosure auction last week. And made one offer that McMachen found particularly attractive: One buyer could acquire all of the distressed properties at once if the purchaser agreed to pay the amount equal to all of the taxes owed on them, which was $4.72 million. McMachen was one of the only investors apparently at the auction who was ready to buy the entire bulk of the 627 homes all at once, instead of individually.
McMachen paid an average of about $7,500 a piece for each of the homes. He says he may sell the properties in packages of 10 or so to some investors interested in individual properties. He also says he plans to donate some to charities and sell others to residents who are seeking affordable properties in moving to the suburbs.
He estimates his purchase will eventually net him about $10 million by reselling the homes.
Ted Wahby, the county’s treasurer, told AOL Real Estate that the sale allowed the county to sell all the foreclosures—the “good with the bad”—all at once and recoup the taxes that were still owed on the properties.
Source: “Bill McMachen of Michigan Buys Hundreds of Foreclosed Properties, Dirt Cheap,” AOL Real Estate (Aug. 3, 2012)
Updated: November 23, 2020