Learning about Tax Sales

Can anyone tell me more about tax deed sales, specifically in the State of Michigan? I am looking to understand the nuts and bolts about how they work, how many investors there usually are, and whether they are as good an opportunity as they seem to be.

For instance, does the bidding start at the amount of taxes owed, or somewhere below that?

Do lienholders get "credit" bids or are they totally out of the picture? If there is a mortgage on the property, do banks tend to bid on the property?

If there is anyone that knows of either good resources to get this info, or is willing to chat abou tit, I would appreciate that too!

Thanks!

Paul Christian

Real Estate Investor · Deltona, Florida

1 post
50 influence

Apr 08 '11, 01:58 AM

I am a tax deed specialist in Florida. There are alot of differences in each state. The best way to get info is to spend the afternoon in the tax deed office of the local county seat. I have only met a couple of people that weren't very helpful. My best advice would be to make a list of the questions that you have, ask the office attendant the questions and make notes. If they see that you are personable and serious about learning they will help you with anything. Ask about websites that you can use to do your research, list of lands, lands available for taxes, encumberance files, and at the end I would ask " Is there anything that I haven't asked you that I should know before I do this?" That question right there saved me $7200 on my first auction.
Have a great day Paul

Edited: 04/08/2011 at 06:20AM by Administrator : Contact info must be contained in your signature

Paul OConnell

Property Manager · Farmington, MI

60 posts
1 award
50 influence

Apr 08 '11, 05:26 AM

Thanks.

G.D. Haizlip

Real Estate Investor · Atlanta, Georgia

103 posts
2 awards
50 influence

Jun 13 '11, 08:58 AM

Paul,

Be sure to also check-out the countys' website where you are located as they usually post the general rules or guidelines for their process. Read them, and attend a sale for the purpose of just "getting acquainted" with the process.

Do not plan to bid at your first-one, just go: observe, learn who the players (high-bidders) are, and get to know some of them if you can. Yes some wil be competitors once you begin to Invest; however, some you can become good-friends with and also learn things from as well.

Don't get turned-away or discouraged if you ask someone a question and they act a bit reserved with there info. They just may not know or it is possible they may not feel comfortable sharing with you yet---or some just have in-mind that everyone is there competition. The truth of the matter is--I have attended a number of Sales and Investors usually are specific about which properties they want so they will bid and bid and bid--sometimes beyond our price that we would pay. If so, I usually bid within my range and that's it, plus they are not interested in every property on the list---so you should be able to get it---just stick to it---Don't Quit or Give Up. It Works and You can Make Thousands---potentially--Millions!

Michigan is an excellent state to Invest as I believe there are about 83 counties there so there are ample opportunities. Once you have the practice-down in theory, than comes the practical application of what you know--so you will be confident about your strategy and your investment---knowing that you are going to get a good ROI or the property that you are bidding-upon.

Hope this helps You,
Much Success As You Invest!

Edited: 06/13/2011 at 09:04AM by G.D. Haizlip