Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes
Hey Family,
I live in Georgia and I am interested in investing in tax deeds and tax liens. My state has a pretty good interest rate of 20% interest on redemption Deeds. The problem is that you have to wait a year before you can bar the right to redeem. I want to invest in states where I can take possession of the property. I am wondering if anyone else ran into the same situation. Did you start investing out of state? Did you get a mentor? I have the basic knowledge but I’m trying to figure out the best way to Get started. Any advice would be greatly appreciated
Come take a look at tax deeds in Texas. You get immediate possession plus a whole lot more. I would be happy to answer any questions you may have and by the way, those coaching costs are outrageous.
Doesn't TX have a short 6 month redemption period?
For non exempt properties the redemption is 180 days but for homestead properties it is 2 years. Reality is Title companies in most cases will not insure for 2 years
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
5y
@Ronald Stanley no tax lien allows you to take possession immediately. My guess is most tax deed don't either. While there are probably some states that do allow it, it is not a very realistic expectation in general.
I have always invested in state as I want to be able to inspect the property. Investing long distance increases your costs and risk.
Yes I have had many mentors. Some have been paid coaches and some have been other investors i respect and have learned from.
Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes
5y
@John Underwood. Thanks John. In your experience , is it true that 95% of people exercise their right to redeem? If so, does that mean I have to purchase 10 deeds with the expectation that 1 of them may be a property that I can actually foreclose on? Also, did you take an introductory course or read a book when got started? If so, can you recommend any? I am strongly considering paying for a coach to show me the ropes.
Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes
5y
@Ned Carey Thanks Ned. Do you recommend any tax deed investing courses or books that were particularly helpful? I have been offered coaching in the past. The cost ranged from 25k to 50k. Does that seem reasonable? Do you coach any students?
Rental Property Investor · Kennesaw, GA · Member since 2020 · 3 posts · 0 votes
5y
@Ronald Stanley
I am also in GA, and I am a passive investor in tax liens. My partner, who does the hard work, no longer invests in GA because he is interested in getting the property and not the 20% interest. According to him, GA isn’t the most ideal, but TN has been his primary focus. He has “bought” 3 properties thus far in a matter of 6 months. One we bought and sold within 3 months because there was 0 redemption period. We ended up splitting a 40% profit.
Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes
5y
@John Sparagna Thanks John. I live in Acworth which is just north of Kennesaw. Would you be open to a call later this week to share your experience? If so, what’s the best way to contact you.
Texas Tax Sales Services · Merit, TX · Member since 2014 · 256 posts · 166 votes
5y
Come take a look at tax deeds in Texas. You get immediate possession plus a whole lot more. I would be happy to answer any questions you may have and by the way, those coaching costs are outrageous.
Los Gatos, CA · Member since 2017 · 131 posts · 17 votes
5y
I have a property in GA which a contractor put a mechanics lien on almost a year ago. I tried to negotiate with him and got no reply. Reading this makes me think that he’s earning 20% interest and may have the right to take my property?! I’ve got a lot on my plate right now and didn’t have time to deal with this so sounds like I need to reprioritize.
@John Underwood. Thanks John. In your experience , is it true that 95% of people exercise their right to redeem? If so, does that mean I have to purchase 10 deeds with the expectation that 1 of them may be a property that I can actually foreclose on? Also, did you take an introductory course or read a book when got started? If so, can you recommend any? I am strongly considering paying for a coach to show me the ropes.
Yes that is fairly accurate. You can increase your odds by searching for distressed looking properties. A friend of mine hires virtual assistant to to look up the owner. He sometimes find an owner that is deceased or in jail. This increases your chances of it not being redeemed.
I didn't take any courses but I spent time with Google and buying books on the subject.
Then I went to auctions and talked to people that where already buying properties and picked their brains, took them to lunch etc.
I have a property in GA which a contractor put a mechanics lien on almost a year ago. I tried to negotiate with him and got no reply. Reading this makes me think that he’s earning 20% interest and may have the right to take my property?! I’ve got a lot on my plate right now and didn’t have time to deal with this so sounds like I need to reprioritize.
A mechanics lien is very different than a tax lien. He would have to foreclose on his lien to take your property. I Don't know if he can charge interest or not. That might be dictated by your states law or any written contract you had with him.
Come take a look at tax deeds in Texas. You get immediate possession plus a whole lot more. I would be happy to answer any questions you may have and by the way, those coaching costs are outrageous.
Doesn't TX have a short 6 month redemption period?
Come take a look at tax deeds in Texas. You get immediate possession plus a whole lot more. I would be happy to answer any questions you may have and by the way, those coaching costs are outrageous.
Doesn't TX have a short 6 month redemption period?
For non exempt properties the redemption is 180 days but for homestead properties it is 2 years. Reality is Title companies in most cases will not insure for 2 years
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
5y
@Ronald Stanley In Baltimore we get about 85-90% redemption. This is for tax liens. It takes us about 1-1 1/2 years to get a property. Our foreclosure rate is high because of the significant number of distressed properties in Baltimore.
I do not coach, but I certainly post a lot here. 20-50k is absolutely outrageous. It would take an awfully long Tim to recoup that investment if ever. There is a lot posted here, some is very specific to a particular state which you may not get with a class or book
Texas Tax Sales Services · Merit, TX · Member since 2014 · 256 posts · 166 votes
5y
Just to reply to the inquiry about Texas, the redemption period is 180 days unless it has a homestead exemption, or a agricultural exemption or is a severed mineral lease-then the redemption period is 2 years. But, you get possession immediately and most do not get redeemed.
Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes
5y
@Ned Carey
Thanks Ned. I agree when I heard the cost it sounded ridiculous. I am getting a lot more responses than I thought to this post. It’s encouraging that so many people are eager to help. Do you mind if I reach out from time to time to pick your brain?