Anybody into buying tax deed/liens?


Nope, but definitely trying to get some property when we hit the bottom of this recession and they start lending again.
 

Fortitude said:
Pros and Cons please.
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The Cons for real estate are non working exit strategies. If you have a house you want to sale, the con is not being able to sale it. If you have a house that you want to keep and rent, the con is not being able to keep a good tenant in it. Both drain your money. Depending on what you want to do, keep or rent, choose a good area for it and have an exit strategy. A list of renters, a list of buyers. Have a contractor/inspector look at the house so you know it's true condition.

Find your buyers and renters first! Put an add in the local cheap newspaper this weekend advertising a rent house ex. $799/mo or whatever. Or do an ad house for sale ex. $99,000. When people call take their info, what they want (buy or rent, size, etc) and tell them you'll get them an inventory list within the next 30 days. Then try to buy what people are asking for so you'll have a buyer's list with 20-30 buyers/renters/investors already. <<<<< Saved me time and money :):):)

The pros: Always the money. Buy low, Sale high. Buy low, rent. Trust me, if you've never had one, there'll be nothing like getting a $20K check made out to Fortitude :) Or 30K, 40K, etc. You can do it. Real estate is the best profession in the world for making/losing money. You can work 6 months and get nothing. You can work 1 month and pull $100K. I've seen both. Keep at it.
Here yo go. You owe me some sugar now. I think it was another thread made about it also.
http://www.tspnsports.com/forums/showthread.php?t=60483
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Good link.

I just bought this guy's course: http://theinformedinvestor.com
Here is also a good general forum for investors: creonline.com
 
nevaehinvesting said:
The Cons for real estate are non working exit strategies. If you have a house you want to sale, the con is not being able to sale it. If you have a house that you want to keep and rent, the con is not being able to keep a good tenant in it. Both drain your money. Depending on what you want to do, keep or rent, choose a good area for it and have an exit strategy. A list of renters, a list of buyers. Have a contractor/inspector look at the house so you know it's true condition.

Find your buyers and renters first! Put an add in the local cheap newspaper this weekend advertising a rent house ex. $799/mo or whatever. Or do an ad house for sale ex. $99,000. When people call take their info, what they want (buy or rent, size, etc) and tell them you'll get them an inventory list within the next 30 days. Then try to buy what people are asking for so you'll have a buyer's list with 20-30 buyers/renters/investors already. <<<<< Saved me time and money :):):)

The pros: Always the money. Buy low, Sale high. Buy low, rent. Trust me, if you've never had one, there'll be nothing like getting a $20K check made out to Fortitude :) Or 30K, 40K, etc. You can do it. Real estate is the best profession in the world for making/losing money. You can work 6 months and get nothing. You can work 1 month and pull $100K. I've seen both. Keep at it.
Good link.

I just bought this guy's course: http://theinformedinvestor.com
Here is also a good general forum for investors: creonline.com
Click to expand...
Thank you!
 
The laws differ from state to state. Many times you can pay the taxes on a property and have to wait 3 years before you can outright own the property. In those three years, you are the own and are responsible for the yard and building codes, yet you can't rent or live in the property because the owner has 3 years after you buy the property to pay the taxes plus interest.

If you have plenty of money and time, they are very good investments. Like I said earlier, you have a 3 year wait. Well if the original owner wants to pay the taxes, he/she must also pay you 20% interest. If they can't raise the money in 3 years, then you get the property for pennies on the dollar.
 
Texas

Redemption periods give the original owner a chance to buy the property back. Redemption periods can be as short as 6 months (Texas) all the way up to to 4yrs (South Dakota & Wyoming). The owner can buy back the property any time within the redemption period for the price the investor paid plus an interest penalty charge. These charges are from 10% to 25% during the first year and up to 50% during the second year.

So you'll normally either get a property waaaaaay below market value, or make up to 50% return on your investment within 2yrs.

Here's a few redemption penalty rates varying by state: Alabama 12%, Arizona 16%, Florida 18%, Georgia 20% 1st year and 10% 2nd year, Iowa 24%, Mississippi 18%.
Texas, live I am, has the highest redemption penalty in the country 25% 1st year and 50% 2nd year. Also in Texas, the redemption period is only 6 months here from the date the tax deed is filed unless your property is Homestead or Agriculture. If they are Homestead or Agriculture then you get 2yrs.

In Texas, you can rent out the property for cashflow or you can live in it yourself. Most do one or the other. Get insurance

Of course if you can get the property before the tax sale that's good too.
 
Due to many mortgages requiring an escrow, if someone is behind on the taxes are they more likely to be foreclosed on first? If so, are we mostly talking about properties that are already paid off? Here in St. Louis city, you can get old sturdy, triple brick buildings cheap, but you have to go to the auction to get them. I know a guy who does it. Buys shells for 1,000-5,000 and sells them to investors for like 20,000 after cleaning them out.
 
You're right. When taxes are escrowed, as is the case for most new mortgages, there's little chance of you losing your house due to unpaid taxes (they're partially or fully paid already). But even if property taxes not escrowed and the owner doesn't pay them, or the bank mortgage, the bank will foreclose the mortgage before the county forecloses for unpaid taxes. Your bank can start foreclosing in about 20 days if they want to, but you can go months without paying your property taxes.

Property taxes have priority over mortgages. Banks know if they don't foreclose and resale before the county does they may get little or none of their mortgage repaid, depending.

Some Older houses in Houston 3rd ward, 5th ward have delinguent property taxes that haven't been paid in 5, 10, 15yrs and the county still hasn't foreclosed on the property.
 
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