Tax deed properties, How to finance.
A friend of a friend is a tax deed investor. He has 2 houses for sale. 35K each, with ARV's of 100K. One has 2 years left, the other has 9 months left, before he can seek a quite title.
We are current buying with a local bank. I don't think they will want to fund this deal with out quite title. Is there any kind of bond I can buy that will help me get financed? Like forecloses where we can get a bond against right of redemption.
What is a solid source of information so I can go into this with my eyes open. I don't think the seller would rip me off, But I could not sleep at night if I did not understand the ins and outs of this.
Have you looked at how much this tax deed investor paid for the 2 houses at the sale?
Reason for my inquiry is simple, it should motivate you to just buy at tax sale.
HINT: Land is easier to hold for tax investing then flip and reduces your risk of home repair / damage.
@Wilson Lee probably your best bet will be a private lender. Someone who knows you and trusts you and will lend to you because of your reputation. You may be able to get a hard money lender to loan to you if you are buying at redemption price.
Try to find the previous owner and get the right of redemption through a deed...lots of people dont know about the right of redemption at all and will be happy to sell it for couple of hundreds...better to check with an attorney to draft the deed for you.
Some times a waiver works also but having the redemption right through a deed would be the way I would go.
Once you have that right you can go ahead and buy the property without a problem or you may redeem it yourself if the seller bought it for little money you can redeem it with paying the purchase price plus interest according to the state law.
Always consult and attorney its worth it trust me and you gana learn alot in short period of time.
***this is not a legal advice or intended to be always consult a specialist***