Assignment Purchasing of Tax Liens

8 Replies

I know that you can purchase tax deeds in Texas with a 6 month redemption period at 25%. I also know that these tax deeds are for sale at auction in every county every month. What I do not know is whether or not the state of Texas allows assignment purchasing for investors to buy tax deeds that do not sell at auction over the counter. Does anyone know? I don't have the time nor the resources to be going all over the state for these auctions and I don't have the money to compete with some of these big-money companies in an online bidding war. What I really need is over the counter deeds that I can invest in. I have been searching the internet for the answer and cannot find it anywhere. Does Texas even do this sort of thing? I know other states do.

Thanks in advance!


The problem with wanting to buy over the counter is that these are they properties that NO one wanted at the regular auction. Yes you can find a gem in the rough, but it is much more unlikely to find something good.

You could go to a couple different counties auctions after doing your due diligence and be the high bidder on some decent properties that not many other people have noticed and that still might be a pretty good bargain.

You can do well buying tax liens but you have to put in the work.

Look for properties that have a FMV below what the big boys are looking for and you will increase your chances of finding something decent for a bargain price.

You can still try the OTC method, you might get lucky.

John Underwood

@Christina Phillips  these are called struck offs in TX. You can get an incomplete list of the counties they cover @ There's another but I can't think of it right now. You can get acomplete list of Harris County's @ But you gotta pay for this site. 

But John's right, almost all struck offs are worthless and take a lot of time to find that gem. But put on your miners hat and start digging. Let us know if you find anything. I'm told they're there. I just can't tell you where there is. 

Thank you both for your responses. I will definitely keep you guys posted on my progress in this subject. Finding these kinds of deals is proving to be very difficult, especially in my state. I am probably just going to change markets to some other states for now and do some wholesaling until I can build up some capital for the tax deeds. I know that those are a wonderful investment and if you do proper due-diligence on them, they can really pay off. 

I have a different view on tax liens, I think they are great and I did well as a passive investors years ago.

I wanted to be more active and receive my rewards sooner. I wanted to find out why an owner of real estate is in this situation. There are reasons for tax sales, no one wants the embarrassment of losing their home; loss of employment, a death in the family, illness, incarnation, social problems.

 I believe by giving help and letting them know their options, the owner in tax sale have, can be very rewarding while helping others and positing yourself to do a transaction.

Many times these owners have given up, getting ready to move or has abandoned the property.

The other possible reason for a tax sale is that some investors see a tax sale as the city giving them a non qualifying loan for another 6-12 months. Sure the interest is high, but the investors could be just buying time until the property is sold or assigned, paying the taxes at settlement out of their equity profits.

I believe that if the investors can meet with the owner to chat with them, let them know that they have options; sell the house to you, list it, sell for all paper, pay the back taxes, take out a soft or hard money loan, negotiate with tax sale purchase, file counter claim, seek donations from local charities.

This tax lien system can keep an investor very busy.  It is a numbers game, getting to the right seller, making offers, taking tax lien assignments or referring the situation to a lender, an agent or a counselor can be profitable.


As a suggestion you may want to look for a "Resale Tax deed" List, you can do a quick search and find these as well. Since these are not yet "struck off", sometimes you may find some decent deals, also remember the "six month up to 25% on non-homestead & the two year up to 50% homestead" rule. If the property is already owned by the county, and you buy the resale tax deed, your redemption period would be a lot shorter since, there deed was already previously in place and recorded. 

Christina - don't get discouraged about the Texas Tax sales.  Unfortunately that is the downside of living in our Great state.  I too have struggled with having to decide which county tax sale to attend or do I hire a proxy to represent me etc.  As to strike off lists, I have had great luck finding diamonds in the rough ~ without ANY competition.  Something else that is not locating a potential prop did you call the law firm and ask what the allowance is for submitting an offer?  Some counties will prescribe to the 50/75% rule.  Meaning if the prop was just stricken off then they will only accept an offer not less than 75% of the taxes owed.  If over one year then they will consider no less than 50%.  Now here's where it gets real interesting.  I have visited other counties and asked about submitting an offer.  Their can offer whatever you want to submit.  So don't give up.  In fact be really curious.

Now I am headed out the door to review some props and if good will drop off my sealed bid with the county.  What's my offer? Somewhere around 20 cents on the dollar.  If they are accepted ~ that's phenomenal!  If not will resubmit.