Tax Deeds???? What are your opinions?

Question

Hello, what are some of your thoughts on buying tax deeds when you’re first starting out to acquire property for deep discounts? I’ve done some research and I know the worst is additional costs that can come up if you were to take ownership of the property, but I’m very optimistic overall that I don’t feel discouraged about taking on something “possibly” more problematic than most. I know I have to do due diligence and get title searches of the property before I bid and in my opinion the pros outweigh the cons. Am I looking at this the wrong way? Any and all advice would be greatly appreciated!

Arnie Abramson · Answer

Tax Deeds area alive and well in Texas-even though the last couple of months have had fewer counties with sales. That is about to change and there are still deals to be had here if you know where to go and how they work. There are classes available online for those who are so inclined.

As for excess proceeds, in Texas the most you can charge to help someone claim them is 25%, not to exceed $1,000 and you must be an attorney to charge anything.

John Underwood · Answer

I am looking at 1000 properties. I do not do title searches. The Tax Deed laws are strong enough that I don't worry about it. Plus I keep most of my properties as rentals.

John Underwood · Answer

Residential houses sell for around 7k to 30k each.

I concentrate on 2 counties in my state of SC.

John Underwood · Answer

No, I'm talking about investors bidding up a tax lien to near retail of the property.

John Underwood · Answer

Yes, that is what I have been primarily doing for over a decade.

I have done well with it.

John Underwood · Answer

Tax deeds or tax liens?

I have been buying tax liens for over a decade and have a portfolio of houses where  I received a tax deed.

Tax deed states you are buying the property on the spot and these often go for near retail

Account Closed · Answer

@John Underwood you’ve been very helpful! Thank you so much

Account Closed · Answer

@John Underwood how do you do title searches before you buy the tax lien?

Account Closed · Answer

@Arnie Abramson thank you for the response! I’ve seen on the county websites that they have training available but I haven’t seen much else about it. I’ll do some additional research to find the trainings

Account Closed · Answer

@John Underwood and when you say “go for near retail” do you mean one you (after acquiring the deed) sell the property?

Tax Deeds???? What are your opinions?

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