Does anyone has experience bidding in tax defaulted properties in San Jose, CA?
I have been analyzing a lot of possible deals in these market with no luck. Recently, when it was time to pay my own property taxes I learned about the tax defaulted properties. The city does a public auction on a property not paying property taxes after 5 years. I think this will a route to invest in rental property. I read the info of the auction site and checked the list of current properties. The numbers make sense for some of them if I pay cash, rehab it and then rent it. I know it is risky for a first timer dealing with auction, but I believe that you have to start somewhere. Otherwise I will still be a first timer auction investor 5 years for now.
I would like to get more info on the process:
1. Is there any guide or book out there in this topic?
2. What to look for in terms of the public property information?
3. Who should I contact to assist this process for first timers? The process is meant to be completed online (no human interaction). A real state attorney? The city office?
4. The total payment is due on the same day if you are the winning bid. How long do I have to wait until the property is officially mine?
@Nora Davila hey im from San Jose too!
I read about tax liens in Rich Dad Poor Dad. Robert talked about investing in tax lien certificates. A tax lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes. I read an article online about visiting these auctions you have to have a certain criteria and have a buy in amount that is refundable. The reason for that is because they want to get serious buyers.
What got you interested in buying these kinds of property instead of the traditional properties sold on the market?
Thanks @Nico Murillo for your reply. I read the book earlier this year and totally missed that part. I wish I could visit, but I could not find any opportunity since everything on online now.
Good question. The prices here is SJ still high and the rent is not matching the price. The only way this market makes sense is buying and renting per rooms or Airbnb. Do have any more insights about the area? Let's connect.
The prices & competition in San Jose is high. Thus, with these tax default auction, there are companies that actively reach out to the home owners offering them loan to pay back the tax, or offer to buy the house. Most ok properties are redeemed before the auction start. Most of the ones that make it to the auction are unusable lot / land (unless you are an experience developer, or rich enough to hold these lot for a long time).
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing