Chapter 1426 New Trade (1/2)

For real estate auctions, the most important thing was naturally the value of the property.

The key factor in determining the value of the property was the potential for people to move into it.

That was key. After all, most of these properties being put up for auction were mortgaged or had disputers.

Americans did not have good habits of saving money. Instead, they liked to spend on credit. Hence, family credit rating was relatively small. Often, they were unable to pay off the loan after buying a house. Hence, the bank would then retract the ownership of the property.

In some cases, it was because the house owners were unable to afford the property tax. The property tax in California was lower, at around one percent. That meant to say that if the house were worth a million US dollars, the annual tax would add up to 10,000 dollars.

The valuation of the house was determined by the bank. Professionals representing it would proceed to evaluate the house. A manor like that was easily estimated to be worth a few million. Hence, the annual tax would amount of hundreds of thousands!

In any case, there were bound to be issues with the houses being auctioned. Most of the owners would not have given up their property if they had a choice.

Hence, they would naturally feel indignant that they had to sell their house at a low price. Why must they do that? If I cannot have it, others should not be able to have it either, was the prevalent sentiment. Hence, many people would damage the house.

For example, they might clog all the pipes with mud or destroy the electrical circuit in the house. Some would even refuse to leave, among other tactics.

That one reason why there were few people in the real estate auction trade. Not only would one have to be rich, but they also had to be capable. Otherwise, the owner might overstay and refuse to leave, causing trouble.

Of course, that could be resolved by law and by the police. However, the other party might play tricks. If they had babies, elderly or sick people in the family, the police and court would not be able to evacuate the property.

The manor, however, was empty. Li Du had previously let out the little bug to check out the place. The electrical circuit, water pipes, waterway and gas pipes were fine. After some tidying, one would be able to move in.

Having seen the manor, Li Du left, satisfied. He then headed to the next house.

His priority in attending the auction was to find a place to live in. If he could make money, it would be even better. He had realized that the little bug was much more suitable for this trade. The conditions of houses were far easier to review than warehouse contents.

The eleven houses up for auction were in Santa Monica. The one closest to the manor was a small villa that sat on a lot of 240 square kilometers. There were two floors and a basement, a garage and a garden.Find authorized novels in Webnovel，faster updates, better experience，Please click for visiting.

When Li Du arrived in the district of the villa, the security guard stopped him. Lu Guan engaged his usual tactic of offering a bribe, but the guard persisted in rejecting it. Instead, the guard became even more cautious and took out his walkie-talkie to gather more men.

Seeing that, Li Du waved Lu Guan over. Guan said helplessly, ”Seems like it's going to be troublesome to try and get in. Let me check if I can connect with anyone from the villa.”

Li Du looked at the guards and said, ”No need for that, watch me.”

He went back to change his car and came back with a Ferrari Superfast. He sped over and screeched to a stop at the door of the villa. Then he put his head out of the window arrogantly and said, ”Open the door! Come on, quick!”

A guard went forward and spoke politely, ”How do you do, sir? Excuse me…”

”F*ck, I have no time to talk. Hurry and open the door for me!” Li Du scolded. ”Don't provoke me, I have to pass. D*mn, let me through, now!”

The guard looked at the brand-new luxury car and after some hesitation, opened the automatic door.

Li Du whipped out a hundred-dollar bill and shoved it into the guard's hand. ”Guess you know your place.”

The guard smiled. It seemed like these rich men should not be trifled with. He was willing to be on his best behavior in the hope for more generous tips.