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Tax Liens & Mortgage Notes

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Will Wren
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Tax deeds - research

Will Wren
Posted Apr 29 2023, 11:16

I have been researching tax deed and tax lien investing. It is something I would love to implement soon. However, I am struggling to figure out all the research I need to have done on the properties. Im located near Raleigh NC and would love to chat with somebody who has done it, I would love to help out by taking pictures of properties if you are not in the area. Or any other way I can help out.  Or if anybody knows where I can find a course or information on how it would be greatly appreciated. 

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Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
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Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
Replied Apr 29 2023, 12:02

1.  Read up/study on how the process works in your area.

2.  Get the list of properties.

3.  Weed out what you really want to buy....maybe by price, by size, by location, by type of property.

4.  Determine your exit strategy...are you going to buy and rent, buy and flip, fix and flip, how long do you need to hold?

5.  Determine what the current value is and what would be your maximum bid.

6.  Go to at least 3 auctions before you bid.  Take your list....record what they sell for and then reevaluate your strategy.  Would you have won at your max bid, why did others bid more?  Network like crazy at the auctions.  Get their early.  On your short list ask why people bought them and what they plan to do with them, what they think the value is, ask who the experts are, go meet them.

7.  If your strategy holds up, then start bidding at your 4th auction..

8.  If your target counties auction online, well that blows some of the strategy or makes it more difficult.  I suppose you could go back a few months later, see who bought, skip trace them, call them and ask them your list of questions.

https://charlotteclerk.com/dep...

Read multiple times the statutes regarding tax sales in NC.   I've not read them, but in my state they are pretty easy to read and understand.  Hopefully the same in NC.

General Statutes of North Carolina, Chapter 105, Subchapter II, Article 26, "Collection and Foreclosure of Taxes.   https://www.ncleg.gov/Laws/Gen...

Start with your county website as that is probably what you will know best, then maybe the surrounding counties, and then maybe statewide.

https://currituckcountync.gov/...

https://www.haywoodcountync.go...

https://www.gastongov.com/668/...

https://www.hendersoncountync....

I also suggest attending some of your local REIA clubs. Network with everyone there asking them who are the area experts in tax deeds. You'll get some whacks, but you also may get pointed to the local guru. Go network with that person. See if they have any upcoming presentations on tax sales. You might also ask your local title companies if they know any experts.

Good luck.  Be patient.  Tax sales are NOT typically a get rich quick scheme, no matter how excited you are about it.  It is a grow wealth slowly project, like almost any other aspect/niche of real estate.

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Chris Martin
  • Investor
  • Willow Spring, NC
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Chris Martin
  • Investor
  • Willow Spring, NC
Replied Apr 30 2023, 05:14

First, realize that NC is not a tax certificate state. Counties hold tax sales as foreclosure sales per NCGS (NC General Statutes) § 105-374. Foreclosure of tax lien. The details pf NC tax liens and foreclosures are spelled out in Article 26 of Chapter 105 of NCGS entitled Taxation. 

Personally, I have attended a grand total of one tax sale for an unimproved parcel (raw land) in Harnett County. Tax sales were not my specialty. I focused on first lien D-T foreclosure sales and attended well over 100 such events. 

I have found that, in general, people stop paying property tax on unimproved parcels that I would consider junk. Here's a link to the Wake County list of potential tax lien foreclosure sales. Keep in mind that improved parcels may have other liens, specifically first D-T (Deed of Trust) that you should consider before bidding. 

Good luck with your research. 

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Will Wren
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Will Wren
Replied May 2 2023, 10:16

@Chris Martin and @Bruce Lynn

Thanks for the advice! I will take it and run with it!