Hi Everyone. I've just purchased (and paid for) my first tax deed with a six month redemption. Any advice for a newbie in terms of next steps, general timeline to get the ball rolling in case the owner does not redeem (contacting general contractors, etc)? This isn't a property I would feel 'stuck' with. It's a solid brick 3 bed, 1.5 bath .41 acres. Worst house on the street. Needs a bit of work but I passed on a lot of properties up looking for one that fit my criteria. Any advice would be much appreciated. Thanks!
Hi Nhrai Jordan, I am Sungho Kang, an intern at a lending company.
There are about four different actions you can take if the owner does not redeem. I don't know what contacting the general contractors would do. But I do know that, with the tax deed, you have full ownership over the property. With that, if the tax deed is not redeemed, you can foreclose or short sell. Or you can work out a new agreement with the owners and increase the principle by the amount that wasn't paid and increase interest a bit. It all depends on the situation.
I'll ask some of my co-workers at the Funding Warehouse, they have probably worked on a similar situation to yours before. But if possible can I have some more information on what you specifically want to get out of this situation?
hi david thanks for responding. I'd like to rehab and rent the property and sell it to get a return on my cash investment, hence my comment about finding a general contractor. Feel free to share any other information!
to clarify: I'd liked rehab and sell the property, not rent and sell it :)
In order to sell the property to someone who needs a mortgage, you will need to quiet the title. You can either go through an attorney or use this company Tax Title Services.
They will clear the title and enable you to offer title insurance.
Hope this helps.
Hi Joe. Thanks for the recommendation. I listened to a podcast with the Tax Title Service Founder. He was amazing! Have you used the company?
Sounds like you have a lot of time to decide what you are going to do.
Tax Title Services is excellent and they have plenty of experience in Texas to make sure you get marketable title.
If the owner ends up abandoning the property early or something like that do not spend any money rehabbing it or anything like that until the redemption period expires.
Sandra Edmond, Ardnas, Inc | 4072791241 | http://www.QueenOfTaxDeeds.com
@Sandra Edmond Thanks! You're actually part of the reason I began pursuing tax deeds locally. I'm excited to get my feet wet with the process and appreciate the feedback. Luckily the auctions themselves are very newbie investor friendly. Your exact point was explained before the auction (but I previously heard it mentioned it in a videos/podcasts)!
Congratulations! Not sure I see where you bought but we think Texas Tax Deed properties are a great opportunity especially since you get the right to rent immediately! We buy them all over Texas, rehab, rent and sell to investors.
Let me know if you have any specific questions about the Texas process.
@Roy Oliphant thanks! I have heard great things about tax deeds in both Texas and Florida, but decided that investing locally would be best to familiarize myself with the process. It seems like all the research paid off (so far).
Re investing in TX: do you have a tough time with title insurance? @Sandra Edmond recommended Tax Title Services, which I've heard great things about. Also, is there a deciding factor you use to decide whether to rent or sell a property?
It is very difficult to get title insurance in Texas for at least two years after the sale date (end of contestability period). We have had some success when we can locate the owner but a lot of properties are listed in the name of a deceased person.
Still, we have had almost nothing contested and no issues for our investors.
Good luck and good hunting!
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