Tax Sale investing in AZ or TX

3 Replies

I am having trouble finding a website that auctions of tax liens in TX and AZ. Has anybody ever worked with these states?

@Carlos Rosas You mention "Tax Lien" investing, but I see from your other posts you are looking to obtain properties for fix and flip. Tax "Lien" investing is not the best (nor fastest) way to get a property. Tax "Deed" sales is the way you want to go. Be careful - there is a LOT to learn about laws and getting clear title to tax deed properties.

Texas is a Tax Deed state but they do not have online tax deed auctions. You'll need to be in person (or have somebody in person) at the county live auction to bid and win.

Arizona is a Tax Lien state - and they have a 3 year redemption period - which means the owners have 3 years to pay back the taxes before you can foreclose and obtain title to the property. You can look for liens that are already 3 years old ("seasoned" is a term used by lien sellers to mean the lien was issued earlier than a year ago) but your inventory on seasoned liens with homes is pretty limited. You would be buying from a lien investor and not an online auction by the county.

Arizona counties also have Over-The-Counter (OTC) liens. These are liens nobody bought in the annual lien auction. You can buy them directly from the county. You can contact the county office and ask for the list of these liens. Be careful, they were probably not bid on for good reason.

Tax Deeds and Tax Liens are fickle investments. You have to know the laws of the states (and sometimes counties and cities) regarding these investments. All states are different.

I'm curious as to how you're going to do rehabs on properties that are in states so far from Washington?

Hey Jerry thanks for the info.

The reason that I am interested in in doing Tax liens in these other states right now is because the auctions here in WA are held at the end of the year. So I either wait or try to find other sources of income. Another reason why I am looking for income in other states is because I was participating in the ************** auctions, which a lot of the west coast states hold their auctions at is getting over populated and the homes are being sold at market value.

So I am trying to find other ways I can make this work.

Do you feel like I am making the right move?

Looks like you have a lot of experience in this type of real estate and I would really appreciate your input on this.

Thanks in advance.

I know this was posted a while ago, in Texas, you would have an immediate ownership of the property, with either a six month or two year redemption period. The redemption period is determined by exemptions placed on the property by the county appraisal districts. 

All sales in Texas are live and require payment on the same day, either at the close of the sale, or the end of bidding on a property. Most properties are still selling under value, unless a hedge fund rep shows up to the auction, then it could be totally insane. 

If your still interested in more information, just let me know.