I have been reading up on tax sale properties and the process of bidding at a tax sale.. does anyone have any tips?? The sale is October 2018 and i just want as much info as possible. TIA
Some deals sometimes. Lots of out of state guys that bid up pricing. You have to have cash. There won’t be any “obvious” good deals. Have to hunt or take a bit of a gamble.
I suggest visiting the county office downtown and speaking with the woman that runs it... I can’t remember her name at the moment, but she was very helpful when I met her.
I would physically visit the property that you may be interested in. I've seen several people pick up vacant lots without knowing that there was no property. I would also run the addresses through the enforcement database and ensure that there is no pending demo order or some other insidious board of health issue.
One of my favorite stories is a local investor who purchased a parcel of land that is that entryway to a gas station. The gas station won't buy it back, they just opened another entryway. The investor has a portion of the underground gas tanks on his property though and has paperwork to file with the EPA though.
Point of the matter is this... Tax sale can be a gamble. Identify the areas and homes that you are interested in from the beginning. Most of the people I know actually never end up with the property. The properties get redeemed and you get the penalty. I believe it's a tiered penalty system based on time and the amount paid over minimum bid. A tax lien investor told me that he averages about 6-7% ROI on the liens that he buys and get redeemed.
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