Tax Deeds

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

Edited: 06/26/2010 at 03:52AM

Thomas Lethcoe

Real Estate Investor · Gobles, Michigan

10 posts
33 Influence
1 Award

Icon_minipost Sep 11 '07, 10:01 AM

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.

Edited: 06/26/2010 at 03:58AM

Account Closed

3396 posts
-103 Influence
3 Awards

Icon_minipost Sep 11 '07, 06:15 PM

Thanks for sharing. Some great info. :clap:

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.

Edited: 06/26/2010 at 03:58AM

Martin Vergara

Real Estate Investor · Austin, TX

8 posts

Icon_minipost May 17 '08, 03:06 AM

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

Edited: 06/26/2010 at 05:13AM

David George

Real Estate Investor · New York, New York

6 posts
2 Awards

Icon_minipost Apr 17 '09, 01:41 PM

I bought two tax deed lots(land) recently and could use some advice on how to market them once they're hopefully appreciating in value. I bought them from a company that is supposedly reliable although they didn't guarantee the condition or buildable status of the land. I learned from another source that something called a "perk test" needs to be done to make sure there are no environmental issues. Is that right? Any other comments? Mine are in Kansas and Pa. I was able to find contact info for the HOA of the one in Kansas but they haven't been returning my phone calls except one man who didn't know much about the HOA project

Edited: 06/26/2010 at 07:58AM by David George