Wholesaling Tax Deeds

4 Replies

Hello, I am in Alabama and have received a price quote for a tax deed for a property owned by the state, meaning that I have a certain amount of time to pay the amount in order to receive ownership of the tax deed. I want to find a buyer first, and then basically flip and assign the tax deed without using my own money. Does anyone have experience with this and knows what type of contract to use, what to say to the buyer, etc. Any help is greatly appreciated!

Is there a redemption period?  Can you just assign it?  Not having a clear title scares a lot of people away in my experience. I probably  didn’t help you much. 

@Dennis Weber Yes there is usually a 3 year redemption period from when the tax deed is purchased from the state, but from my research I saw that if you have the tax deed, then you can file a Quiet Title lawsuit to clear the title. I will be sure to disclose this information to my buyer. I am just trying to gain some insight on how to present the deal to a buyer.

@Zachary Warren , you will not be able to flip your contract. The Alabama Dept of Revenue (ADOR) requires that whatever name was given the price quote will be the name to whom the tax deed or tax certificate will be issued. You should get price quotes in the name of an LLC that you can then flip the entity, or get your money in advance from the buyer, use it to purchase your price quote property and then transfer to your buyer.