Wholesaler · Dallas, TX · Member since 2014 · 78 posts · 32 votes
Quick question:
Let's say I successfully purchase a property at the Sheriff Sale, this property has a homestead exemption.
In Texas ,if a property has a homestead exemption or is deemed agriculture land, the redemption period is 2 years. All other properties have a redemption of 6 months.
I'm thinking I wouldn't dare start any repairs on this property just in case, the owner pays me the costs plus 25% interest. 2 years is a long time to come up with the money to get the property back. I also know, I don't want to be a landlord, I like notes & flipping much better!
I could also, contact the seller to see if he wants to sell. Hopefully he does not hang up in my face. My experience with Delinquent Tax owners, they finally want to sell 4 days before the auction- on a Friday lol!
Rockwall, TX · Member since 2014 · 380 posts · 211 votes
9y
if you want to flip quick, tax deed investing is not the right place to be looking. While some repairs are recoverable at redemption you are correct to be concerned over what you can fix immediately.
I dont understand your not wanting to be a landlord. Recurring revenue from a single effort is the best builder of real wealth. Texas law provides a great value to the investor by allowing them immediate possession and right of rent. But it is a long term opportunity and flippers should generally look elsewhere.
Wholesaler · Dallas, TX · Member since 2014 · 78 posts · 32 votes
9y
@Roy Oliphant thank you for your honest words! I'm really back & forth about it!
I recently( last week) went through a terrible eviction and it turned me off. I know I am speaking from that aspect. If I had a 3rd party management company that would alleviate ALOT of things on my end. Also, I have created notes but not for residential properties. I enjoyed the aspect of collecting without worrying about anything on my end.
Investor · Saint Bruno De Montarville, Québec · Member since 2016 · 49 posts · 35 votes
9y
I look at the right of redemption as a "Hail Mary". In my 10+ years of experience I've never seen anyone come back and actually redeem the property. It certainly can happen but for me, and I'm probably more comfortable with risk than others, it's there and I think about what might be needed to actually redeem. If it's going to take a lottery win to be able to happen then a) how likely is that and b) are they going to want this house again or buy their new mansion?