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Drug dealer's former properties hit the auction block

TNS Regional News • Aug 19, 2013 at 3:07 PM

It’s time to dream the American dream again.

As far as home auctions go, there’s some pretty good choices in a list of properties offered at auction through the U.S. Marshals Service thanks to the bust of a local drug dealer.

Altogether, 41 properties will sell in 13 auction groups. Sorry, no individual property sales this time. Large yellow signs popping up in front of properties all over Lima help identify which ones.

There will be a couple of groups of two houses, several with three or four houses and one group with five houses, said Jeff Dulmage of Hartsock Realty, who is helping to manage the sales of the properties.

“You can’t just go to this auction and buy one house,” Dulmage said.

The auction is scheduled for 7 p.m. Aug. 27 at the University of Northwestern Ohio event center. Preregistration for bidders is at 6 p.m. Dulmage said.

A year ago, Frederick “Freaky Fred” Reed was sentenced to 10 years in prison for his role in a drug ring that stretched across the nation. He was sentenced on a marijuana distribution charge and conspiracy to defraud the United States.

Reed participated in numerous schemes to purchase and sell gift cards from home improvement box stores. Materials were purchased to repair, renovate and remodel properties purchased with illegal drug sales, authorities said.

The marijuana charge was for the sals of marijuana that was used to buy 104 properties in various locations, including those in Lima. Authorities tacked on a forfeiture specification for properties obtained through illegal means and seized the properties, which include those in the auction.

All buyers are required to close within 30 days. While a month sounds like a lot it will be a push for anyone trying to start the process on the day of the sale, so Dulmage recommends people come prepared and have the required $2,500 cashier’s check per group of properties or 5 percent of the bid, whichever is greater, to be able to bid that day. Personal checks will not be accepted, he said.

For specifics on the bidding process, visit https://www.hudsonandmarshall.com.

Hudson & Marshall auctioneers is handling the auction. The company specializes in such auctions all across the country, Dulmage said.

Dulmage expects strong sales because most of the houses are in good shape. There is a reserve on the houses, however. The U.S. Marshals Service established a low price bid ahead of time, which will not be announced before the auction but Dulmage predicted it won’t affect sales because the Marshals Service does not want to be in the homeownership business.

“It sounds like they’re not going to hold them back,” he said.

All houses will be free and clear of liens, and sold with a clear title.

The sale seems ideal for landlords or would-be landlords. Some houses are ready for living and some even have tenants. A landlord could choose to keep the tenant and reach a rent deal, Dulmage said.

“A couple people I talked to who may bid on different properties have said, ‘I would let them stay,’” he said.

All houses, regardless of whether occupied by tenants, will be open for view from 1 to 4 p.m. Saturday and Sunday. Even if a real estate agent is not at the property at the time, a person can go inside and look around, Dulmage said.

Anyone with questions on the properties can call Dulmage at 419-302-3940.


By Greg Sowinski - The Lima News, Ohio (MCT)

©2013 The Lima News (Lima, Ohio)

Visit The Lima News (Lima, Ohio) at www.limaohio.com

Distributed by MCT Information Services

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