Is This Tax Deed Formula Too Good To Be True?

Question

There is a system out there being sold stating that you can contact property owners who are delinquent before it goes up for the tax sale possibly buying the property for a token amount, assuming the taxes, recording the deed, & then turning around flipping it for a quick profit NEVER actually paying the taxes but rolling them into the price where it's still a bargain.

Or buying the tax deed for pennies basically, recording the deed, then letting it go up for auction. For whatever it sold for over the owed amount of the taxes is owed to YOU by the county.

Hmmm... This sounds too good. Is this for real??????

Account Closed · Answer

Yes indeed it involves mostly land.
The argument he was making to sell
the course was that they're already in
jeapordy of losing the property due to
taxes & not walking away with
anything. You (the investor) offers
them a token amount for the deed.
Something is better than nothing imo.

In reality, has this been done. Buying
for a token amount then collecting the
overbid from the county?

In reality, has this been done. Buying for a token amount then collecting the overbid from the county?

Rich Weese · Answer

I'm in Texas, and I attend tax and foreclosure sales regularly. Many lots go to tax sales, because there are so many in TX. , but owner may still redeem it. I've yet to see a f&c home lost to taxes. I have bought lots of foreclosed houses that had substantial taxes owed, but not 1 f&c.

Rich Weese · Answer

Think about this. You own a home free and clear. You've lived there for 20-30 years and paid taxes for all those years. All of a sudden, owner doesn't pay a couple grand in taxes and loses his home? Not logical in reality.

Account Closed · Answer

I figured that, but what about going after the ones that are owned free & clear? No mortgage. They made it sound so simple.

1.) Filter the list down to what you want

2.) Send out a letter & if the the distressed property owner calls you offer them pennies on the dollar,

3.) If they accept your offer record the deed with the county.

4.) Do the title work to make sure there are no liens.

5.) Put it on back on the market for a bargain price with the amount of taxes included. Or let it go up for auction hoping it sells for much more than what is owed in back.

I'm really fighting & holding on hoping this is the legit way of handling it.

Rich Weese · Answer

There is alot more to it than that. Plus, at least in our state , there is a year redemption period. Plus, a mortgage against the property that you have to deal with. Lots of people attend our tax sales here in TX, but I prefer the foreclosure sales.

Is This Tax Deed Formula Too Good To Be True?

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