Simulation: a fictional property for practice.

A Nevada sheriff’s sale: should you renovate right away?

You can win a house at a sheriff’s sale for $150,000. Then there’s a one-year redemption period.

A fictional house at a sheriff’s execution sale in Nevada.

• Sale: Sheriff’s sale to satisfy a court judgment, Nevada
• Your bid: $150,000
• Value after repairs: About $280,000
• Repairs needed: About $50,000

Mission 1: What do you get on sale day?

What happens after you win?

• A certificate of sale. For 1 year the debtor, or a creditor with a later judgment or mortgage, can redeem by paying my price plus 1% a month and certain costs
• The deed, the same day

Liens senior to the judgment being enforced stay with the property, so check the title too.

Mission 2: Start the $50,000 renovation now?

Do you renovate during the redemption year?

• No. Wait until the redemption period ends
• Yes. The sooner it’s fixed, the sooner I can sell

Build a year or more of holding costs into your bid: taxes, insurance and the cost of your money while you wait.

Would you bid $150,000?

Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.