New member in GA - Interest in Tax Liens & Deeds

13 Replies

Hello all - I am new to Bigger Pockets which looks like an interesting forum.  I am a Tax Lien & Tax Deed investor.  Always looking for new investments, insights, opportunities, partnerships, ideas, support and am glad to help.  I live in GA and will invest almost anywhere in the country. Glad to share more, but thought this is a good start.

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Hello @Seth Deitchman and welcome to the sight, I find tax leans an interesting strategy. What do you find the top 4 biggest challenges with buying properties at tax auctions?  Thank you for your time.

Marlon, thanks for the tips!

Georgui, here are my thoughts on the biggest challenges:

1- time: not enough time to research all the properties. 

2- other investors: sometimes other investors just pay too much...in my opinion. They have their strategies. 

3- location: I would like to be in more places than I am able to be. I find it very difficult to buy liens, deeds or redeemable deeds in locations I have not seen or have someone to survey the property for me. 

4- not sure...maybe knowing the different rules at each county auction. 

I’d like to hear your opinions. 

I have witnessed a few tax auctions but I have not purchased any. I have had a few conversations with people that have. From what I gather. 

1. Redemption rights. I believe the seller can pay back the owed amount for a period of up to ( now here is where I have mixed information and I have not taken the time to verify) 1 or 2 years. All though they pay you back at an interest of upwards of 10%. So in the end, you either get the property or get a high return on the investment. 

2. You will potentially have to evict the owner. I can't attest to the process of eviction so that's that.  

In Athens Ga. You have to go to the courthouse steps to buy tax leans and I can get a list emailed to me a month before they go to auction. 

This is pretty much all I know about tax sales. 

I feel you about not being able to be in as many places as you'd like to be. If I want to buy foreclosure on the courthouse steps in Clarke county I have to be there. The problem comes in when there are other properties in other counties and the auctions go on at the same time.  And if I have an interest in multiple properties and those properties are located in multiple counties then I have to choose where to go I have such FOMO. 

I have my Reals Estate license so if you ever need me to check on properties for you let me know. 

Hi @Seth Deitchman , I have been to, participated and won a few tax deed/lien auctions.  What is your goal with this type of investing if I may ask?  That may help narrow things down.

@Seth Deitchman Those are great goals:  Through Tax deed auctions you can certainly attain a profitable portfolio of flips/rentals if your Purchase Price is low enough to account for the rehab usually associated with Tax Deeds (as well as the other factors of course: neighborhood, market, etc).  Liens are also great as you mentioned on interest, Indiana comes to mind for me because it's close and the % isn't too bad.  

Redeemable Deed states like GA are also very interesting and @Georgui Kasaev brings up a good point with redeemable rights and eviction of the owner.  In GA (if that's where you're looking in invest), after winning an auction you are issued a "Redeemable Deed" that, if the property owner redeems, the winning bidder is paid back their investment amount, plus 20% penalty on the first year of elapsed taxes, and 10% on any additional year after.  You may very well have to evict the owner if the property is owner occupied.

  It may be inconvenient to appear to bid in GA, but also might eliminate some competition as places like FL and CA host online auctions where the accessibility is very easy.  I hope some of this helps.

My biggest challenge is that nothing happens in this without a dollar going out of my pocket.

Nothing happens for free... at least not for me.

I can sit and invest more into this, but I am always nervous that I will hit a cash crunch...

its kinda like owning a boat...

Thank you!

I haven’t looked in Athens yet, but I know it is a great town!  Would enjoy hearing your insights about the market in the county and Athens. I want to avoid FOMO as much as possible, however it will always be in the rear view mirror. 

Originally posted by @Georgui Kasaev :

I have witnessed a few tax auctions but I have not purchased any. I have had a few conversations with people that have. From what I gather. 

1. Redemption rights. I believe the seller can pay back the owed amount for a period of up to ( now here is where I have mixed information and I have not taken the time to verify) 1 or 2 years. All though they pay you back at an interest of upwards of 10%. So in the end, you either get the property or get a high return on the investment. 

2. You will potentially have to evict the owner. I can't attest to the process of eviction so that's that.  

In Athens Ga. You have to go to the courthouse steps to buy tax leans and I can get a list emailed to me a month before they go to auction. 

This is pretty much all I know about tax sales. 

I feel you about not being able to be in as many places as you'd like to be. If I want to buy foreclosure on the courthouse steps in Clarke county I have to be there. The problem comes in when there are other properties in other counties and the auctions go on at the same time.  And if I have an interest in multiple properties and those properties are located in multiple counties then I have to choose where to go I have such FOMO. 

I have my Reals Estate license so if you ever need me to check on properties for you let me know. 

@Seth Deitchman I'd love to share anything I know. Let me know what you would like to know. Athens is an interesting town because although not having a huge industry right inside the perimeter it still constantly growing, the university is the lifeblood of our economy which is good and bad it is also the river that brings new elements to our ecosystem. Great place to start. 

Thanks @Chris Ed sure, that sounds great!

  Originally posted by @Chris Ed:

Hi @Seth Deitchman, 

I've found FL to be good for OTC liens and OH to be good for tax deeds. Let me know if you're interested in working on a checklist for due diligence.

@Seth Deitchman , Good day! I learned tax sales thru going to the tax office and asking lots of questions. Depending on how busy the office will dictate one on one time with customer service. It's FREE! Find a mentor. ITS FREE! Go to go the tax sales and make friends. ITS FREE! Go to BP podcast/youtube vids. ITS FREE!

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