How to hire someone to buy property at tax sales out-of-state?

8 Replies

What state?   I'd be very careful with this.   I thought Atlanta was pretty hot place for tax sales...so why go out of state.

Do you know how to train someone to do it properly in your state? Maybe start with that if you haven't already, and then once you're comfortable teaching someone near you, then try to do it somewhere else.

IMO it would be a very difficult business model or even a disaster-waiting one. Here are the scenarios I can think of:

Assuming you got a very qualified person with all the knowledge's about tax sale in the areas. 

How are you going to compensate his works ? 

* By the numbers of the purchases ? the more he buys the more he makes, so he is going to buy EVERYTHING including junks, landlocked, burned down, worthless ....

* By the percentage of the winning bid purchases ? Same reason as above, he is going to be the top bidder without any considerations.

Where is the purchase fund coming from ?

* Yours: can you trust someone with tens or even hundreds of thousands dollars to represent you to make purchase ? 

* His: if he gets lucky and hits a very good bid, what make him send the purchase your way ? 

 However, you can get on the "remote tax sale" purchases is to "2nd hand purchase" (buy from bid winners) . Of course, the purchase price would be bigger than the wining bid to convince the seller. 

Originally posted by @Kiet N. :

IMO it would be a very difficult business model or even a disaster-waiting one. Here are the scenarios I can think of:

Assuming you got a very qualified person with all the knowledge's about tax sale in the areas. 

How are you going to compensate his works ? 

* By the numbers of the purchases ? the more he buys the more he makes, so he is going to buy EVERYTHING including junks, landlocked, burned down, worthless ....

* By the percentage of the winning bid purchases ? Same reason as above, he is going to be the top bidder without any considerations.

Where is the purchase fund coming from ?

* Yours: can you trust someone with tens or even hundreds of thousands dollars to represent you to make purchase ? 

* His: if he gets lucky and hits a very good bid, what make him send the purchase your way ? 

 However, you can get on the "remote tax sale" purchases is to "2nd hand purchase" (buy from bid winners) . Of course, the purchase price would be bigger than the wining bid to convince the seller. 

I can see several ways for it to work. I've thought about gettinga JV funding partner in Indy tax liens. The county makes you fund first before you get bid paddle. Property name would be in funder's name. Can't see any reason why someone would purposely bid on bad properties.

@Rhonda Stewart Just like hiring someone for any other job. First you need to much more clearly define what you want done and what your goal is. 

Maybe you have done this but it is not very clear from your question. Which states do you want to invest? Do you want to buy tax deed or tax liens? Is your goal to get interest or get properties?

What do you want the person to actually do? do you want them to drive by and inspect properties? To evaluate the what the properties might be worth? To actually go to sales and bid? To bid for you at online auctions?

When you know the specific skills needed then use that to help narrow your choice. Many of these things an agent could do for you. In my area some investors pay $.50 to $2.00 to drive by and take pictures. Then the investor evaluates the property and decides on the bid amount themselves. 

I think @Ian Kee made a good point. Document what you do now and train someone for your state. Then try to replicate that elsewhere. The key to any good hire is having a good job description. 

As far as moving to other states the first step is to learn the rules there. If you come to MD without knowing the rules you will get your clock cleaned. But it will take you three years to figure out you aren't making any money.

@Rhonda Stewart - Great question.   From the other feedback you get the gist, it is not easy.   So find someone you trust like a family member.   I think that's the only way to make it work.  Instead of this, I would try more buying remotely like online methods.   This too is risky but you are in control.   You have to perform your due diligence.   Understand the market first then make the purchases.  Also understand the title issues from each state.   They vary by state.  Best of luck