Forums » HUD, VA, and Tax Sales » Tax Deeds

Tax Deeds 5 posts by 4 users

conquestinve...

4 posts

Posted: 07/31/2007 at 04:08PM

Has anyone here had success investing in tax deeds?

Meaning buying the actual property at the the tax sale, NOT TAX LIENS

Can you share your experiences?

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John C.

Real Estate Investor

3399 posts

Posted: 08/08/2007 at 03:19AM

Originally posted by "conquestinvestments"

Has anyone here had success investing in tax deeds?

Meaning buying the actual property at the the tax sale, NOT TAX LIENS

Can you share your experiences?

People do not invest in tax deeds. People buy real estate at an auction (or other means) where the property is being sold because the property taxes were not paid. They are buying a property but the deed will be referred to as a tax deed. Normally this means that the deed makes no promises about the title being clear or free of unsettled claims or other issues.

In some states it can take up to two years before you can get title insurance. You need to know the process in the specific state and maybe in the specific county.

One of MikeOH's recent posts goes into his experience in OH with tax deed auctions. Go to his profile and look at his recent posts to find it.

John Corey

Thomas L.

Real Estate Investor
Gobles, MI

8 posts

Posted: 09/11/2007 at 09:01PM

I have been involved in tax liens and tax deeds for 8 years and i believe them to be one of the most profitable avenues in real estate. The #1 most important thing to remember is numbers. If the numbers add up gp for it.
I don't know which State you are refering to , but, here in Michigan i just bought a tax deed 2 weeks ago. It has a rough appraisal of 60k
I bought it for 20K + theres a 10% buyers premium + $20 recording fee. Also you are responsible for this years summer taxes. I have under $23000 total into it, and I'll be selling it for $57k to the current tenant as the actual previous owner to the property is deceased.
One very important thing to know with Tax deeds is to do your research, never buy one you haven't personally seen,(not a picture) and to double check everything as the properrtied sold at auction are sold by their legal description , NOT by the address. KNOW WHAT YOU'RE BUYING! Oh, and don't enter an occupied property or start an eviction until you've recieved th deed.

John C.

Real Estate Investor

3399 posts

Posted: 09/12/2007 at 05:15AM

Thanks for sharing. Some great info.

So a few things are really clear to the other readers...

[list]- Tax liens are not the same as tax deeds.
- The process varies by state if not by county.
- In some states a lien can never be converted into the deed. An auction if held rather than let the lien holder pick up the deed for the price of the lien.
- In other states a tax deed comes with strings that will prevent a title insurance company from issuing title insurance for up to 2 years. That means any sale will have to be to a cash buyer who is comfortable with the title risks. It also means no refinancing as no conventional lender will do a deal when they can not be sure of the title.
[/list:u]

Originally posted by "Michigan Investor"

I have been involved in tax liens and tax deeds for 8 years and i believe them to be one of the most profitable avenues in real estate. The #1 most important thing to remember is numbers. If the numbers add up gp for it.
I don't know which State you are refering to , but, here in Michigan i just bought a tax deed 2 weeks ago. It has a rough appraisal of 60k
I bought it for 20K + theres a 10% buyers premium + $20 recording fee. Also you are responsible for this years summer taxes. I have under $23000 total into it, and I'll be selling it for $57k to the current tenant as the actual previous owner to the property is deceased.
One very important thing to know with Tax deeds is to do your research, never buy one you haven't personally seen,(not a picture) and to double check everything as the properrtied sold at auction are sold by their legal description , NOT by the address. KNOW WHAT YOU'RE BUYING! Oh, and don't enter an occupied property or start an eviction until you've recieved th deed.

Martin V.

Real Estate Investor
Austin, TX

8 posts

Posted: 05/17/2008 at 02:06PM

As of late its been hard to get property at the tax auctions here in TX. You get alot of investors from around the country investing and they have been bidding up prices.
(if you want details on the investment returns here in texas see my other posts or email me Ill be happy to talk with everyone)

I stopped going to the auctions a long time ago. I developed software that searches for home owners whom owe delinquent taxes in Texas and Im sharing it with everyone of course as a subscription.
It works though we have been successful theres just way to many leads for the two of us to handle on our own.

Martin

Lovely mid-century in Echo Park, CA

Tax Deeds 5 posts by 4 users

conquestinve...

John C.

Thomas L.

John C.

Martin V.