Tax Trust Sales in Texas

3 Replies

I am looking at investing in Tax Trust properties in Texas.  These properties are defined as -"Tax Trust Property is property that did not sell at a Constable’s Sale ordered by Court with Judgment to foreclose the tax lien. Plaintiff Party (taxing unit that filed suit) receives property to hold on behalf of itself and other taxing units. This is referred to as “bid-off” and “struck-off” and is listed in entity’s name with “TAX TRUST”."

If I am looking at buying these properties what are some the things that I need to factor in before I bid on these properties? Title reports?? How do I find out about other liens? Any help will be greatly appreciated!!

perform the same due diligence as you would a normal tax deed. Make sure you don't pay more than it's worth.  Find out if there is a 6 month or 2 year redemption period, or maybe none at all.  Check for EPA liens.  You don't bid on strock offs.  You just buy them. Not a lot of good struck offs. They didn't sell at the auction for a reason.  Good luck!

@Daniel B.

There are very few deals in this type of investing IF you are looking for immediate cash flow; other property types may be more attractive.  What types of properties are you interested in?  I have reviewed a good number of these and would be happy to discuss. 

I would recommend that you find someone experienced in buying struck off properties in order to get some help valuing them. You typically don't bid, and instead buy them directly from the taxing authority (or the law firm contracted with the taxing authority such as Linebarger or Purdue Fielder Brandon Collins and Mott). 

Be VERY careful with these properties; lots to go wrong.

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