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Tax Liens & Mortgage Notes

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Aaron Maxwell
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For tax deed investing.what apps do I need to get organized?

Aaron Maxwell
Posted Apr 8 2024, 17:46

What apps should I use for setting up a system to invest in tax deeds? Do I need a CRM and a acquisition manager? Do I really need to know how to work excel spreadsheet to the T or just basics? Should I use propstream? I want to contact the owners of tax deeds /pre foreclosure before they hit the auction block. I am creating a tax deed detailed due diligence check list. Is there anyone experienced in this field? What are the main tools that I need?

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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 9 2024, 08:48

What state are you in?

Don't spend a lot of money to get started.

Buying before the sale is pretty tough and probably not even the best strategy.

Get a list for your area. Determine what you would be willing to pay.....while not really accurate in most cases, maybe just start with tax appraised value or some % of that is what you would be willing to pay. Go to the sale and see what they sell for. Maybe go to 2-3-4 sales before you start spending money. Network like crazy there, although at least 1/2 the people there have no clue. For example last week I saw people buying lots in a nice community. They were paying at tax sale what they could have bought them for off MLS. Off MLS they probably could have gotten a survey, title insurance, and some HOA transfer fees when purchasing, so better deals off MLS, and with no restrictions for resale. At that tax sale, there is basically two year lag before you can resell it...in the meantime they need to pay taxes and HOA dues. None of them knew if there was an HOA or what the dues are....or that there are probably 50 other lots for sale there on MLS.

I would also start by reading and understanding the laws in your area. Pull the property code for tax sales. Are you tax lien or tax deed state or combo state? Read the book the 16% solution. See if there are any white papers published on the system in your state for example on Tax Sale Recourses website. Don't attend the national roadshows training, but if there is a local guru that teaches classes, invest a weekend or whatever they offer. I think there is one in Ohio and one in Florida that do this. Maybe check with your local REIA to see if there is a local expert.

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Replied Apr 9 2024, 14:30

The answers to your questions depend on your strategy in acquiring properties at tax sales.  Are you going to rehab and hold them?  Rehab and sell them?  Sell them as is?

You need basic spreadsheet skills to conduct research, but might want more advanced skills to do analysis.  If you're going to sell the properties with or without rehab you'll want to have a robust CRM to manage your distressed homeowner/buyer/attorney/vendor lists.

The advice from Bruce is solid...start slowly and you'll figure out exactly what you need as you proceed. 

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