Updated about 1 year ago on . Most recent reply
New to Tax Lien and Deed Investing
Hello ya’ll, new here, just joined, am wanting to get into Tax Lien and Deed Investing (auction and OTC). Does anyone happen to know if there is anyone that can help or at least guide me to a person, place or thing lol that would have reputable training. I’ve seen a few websites about seminars/training, while google searching but then see reviews that aren’t so great. Any and all advice, suggestions welcome!
Thank you in Advance 😊
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#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
Ok...Texas....just a few thoughts.
OTC is mostly trash. Now and then you can find a gem, but we don't really have a lot of OTC for the most part and what there is mostly is stuff no one wanted at the sale. That's the flood zone stuff, or stuff where value is less than what is owed, or maybe partials, land locked, drainage ditches, stuff like that. I'll bet you would dig thru 1000 properties if there are that many to find a decent OTC deal in Texas. Sales are well attended by good buyers for the most part and the good stuff typically will sell at auction.
In Texas you pretty much need to be available to attend the sales in person on Tuesdays. You pay same day, same hour, or even in some places like Dallas county the same minute you buy in CASH or cashier's checks. So no loans possible typically. Every location a little different as to how they want payment, who it goes to, and when, but general rule is same day. Most sales in person. Texas allows online sales now, but not many places doing it. Burnet county near you seems to have put some lots online for auction, kind of as a test it seems.
No one redeems in my experience so the 25-50% rule is a bit of a myth. Can happen, but pretty rare. When you win, chances are you will get the property. Typically you will need to hold for 2 years before reselling. Forget the 6month idea, nearly impossible to sell before holding for 2 years.
That's some of the basics.
You've probably got some good counties around you to try. I've never been to Travis or Bexar county sales, but imagine there is a lot of competition and money there. I have seen some properties that looked good in Kerr county the past couple of years, but chose to go to other sales instead.