Tax Liens and Tax Deeds. Tools and Calendar

Tax Liens & Mortgage Notes
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Tax Liens and Tax Deeds. Tools and Calendar

Omar Bortolato
Investor · Member since 2021 · 18 posts · 10 votes

I’ve been personally investing in tax lien certificates lately.

If you don’t know what tax liens are, basically when a landowner or homeowner fails to pay the taxes on their property, a tax lien certificate is issued by the municipality that reflects the amount owed on the property, plus any interest or penalties due.

These certificates are then auctioned off to the highest bidding investor. Tax liens can be purchased for as little as a few hundred dollars for very small properties.

The problem is that each state and county have its own regulations: they issue sale lists of tax liens certificates throughout the year, and auction dates are also different.

Also, some states hold auctions once a year, some twice a year, some every month..

So, I went on a rabbit hole and compiled a list of the next auction dates:

November: Colorado, Illinois, Louisiana, Montana, New Jersey, Ohio, Pennsylvania, Vermont, West Virginia

December: Illinois, Louisiana, Montana, New Jersey, Ohio, Pennsylvania, South Carolina, South Dakota, Vermont

January: Arizona, Louisiana, Montana, New Jersey, Ohio, Pennsylvania, Vermont

I actually have the whole year mapped out with websites where you can get the sale lists. I did it in a Google Spreadsheet here:

https://docs.google.com/spread...

Feedback wanted

I hope this research buys me a little goodwill in order to ask you for feedback on my new project.

Since I’ve seen how difficult it is to gather good information on tax liens, I’ve partnered with 2 other lien investors and made a website called FastLien where you can get upcoming sales lists with a click of a button.

If you end up trying the site, please give us some feedback as we are working hard on it!

Thanks,

Omar

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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y

Where are you and where are you buying?

Nice work on the spreadsheet.   Do the dates stay the same each year?

Around me it seems to change all the time...except almost always 1st Tuesday in Texas.

As you mention though, some have monthly and some quarterly, some yearly, and plenty when they just feel like it....or have enough properties to put in the sale.

3Reply
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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    Where are you and where are you buying?

    Nice work on the spreadsheet.   Do the dates stay the same each year?

    Around me it seems to change all the time...except almost always 1st Tuesday in Texas.

    As you mention though, some have monthly and some quarterly, some yearly, and plenty when they just feel like it....or have enough properties to put in the sale.

    3Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    So SC is not accurate.

    Every County sets their own schedule. They are usually Oct, Nov, Dec. They rotate so that the end of a 12 month redemption period is not in the same month as the tax auction. You pretty much have to check with each county to see when their auction is for that year. Sometime an adjacent county for me is in the same month even same day, but more often than not they are in different months. 

    Hope this helps.

    Are you attending multiple state auctions? I personally just attend 1 to 3 auctions in my home state of SC.

    1Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y

    Hi Bruce, 

    the calendar is good for a high level vision, but you're right, it's not so easy to check all auction dates, find listings, and keep track of current investments, that's why we developed fastlien.
    Every day you can see the listings you are interested in and all related information, plus a lot of other things :)
    I would be very happy if you try the SW so I can get your feedback, you can just try it for 7 days for free.

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @John Underwood:

    So SC is not accurate.

    Every County sets their own schedule. They are usually Oct, Nov, Dec. They rotate so that the end of a 12 month redemption period is not in the same month as the tax auction. You pretty much have to check with each county to see when their auction is for that year. Sometime an adjacent county for me is in the same month even same day, but more often than not they are in different months. 

    Hope this helps.

    Are you attending multiple state auctions? I personally just attend 1 to 3 auctions in my home state of SC.

    Personally, I attend as many auctions as I can :)

    I actually have my list of favorite states and counties, but with good organization and a detailed plan there are no limits if you operate online.
    0Reply
  • Yi O.
    Investor · Wichita, KS · Member since 2015 · 24 posts · 2 votes
    5y

    I am new to tax lien properties.  Can someone provide your thoughts on the following questions, please?  I would deeply appreciate your help.

    1. Are you all hiring a court runner or lawyer to research the properties in order to make sure Tax lien is the only lien against it?   or you all don't think it is necessary?

    2. The properties are not available to see prior to the auction,  how are you determine that is manageable?

    3.  I read it somewhere,  you don't have the title after winning the bid.  It will take up to 15 years to get it legitimized with the title?

    Thanks

    1Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @Yi O.:

    I am new to tax lien properties.  Can someone provide your thoughts on the following questions, please?  I would deeply appreciate your help.

    1. Are you all hiring a court runner or lawyer to research the properties in order to make sure Tax lien is the only lien against it?   or you all don't think it is necessary?

    2. The properties are not available to see prior to the auction,  how are you determine that is manageable?

    3.  I read it somewhere,  you don't have the title after winning the bid.  It will take up to 15 years to get it legitimized with the title?

    Thanks

    1) No it's not necessary, there is a lot of information available online or easy to retrieve by the county. You can do a good title search for your own, obviously, you have to do good due diligence

    2) The same as above, you can use a bunch of online tools (starting from Google Maps e.g.) and use specific services to get photos of the property

    3) It's wrong. If you are talking about Tax liens you aren't buying the property but the credit of the unpaid taxes on which gaining interest. Instead, if you are referring to Tax Deeds you will have a Tax Deed title that gives you all the rights on the properties right after the auction

    0Reply
  • Yi O.
    Investor · Wichita, KS · Member since 2015 · 24 posts · 2 votes
    5y

    3)  I was talking about the tax deed sales.   and it seemed a lot insurance companies won't offer service for that deed.

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @Yi O.:

    3)  I was talking about the tax deed sales.   and it seemed a lot insurance companies won't offer service for that deed.

    You simply have to quiet title that can be done with a lawyer or specialized services.

    0Reply
  • Yi O.
    Investor · Wichita, KS · Member since 2015 · 24 posts · 2 votes
    5y

    sorry,  what do you mean by Quiet title? 

    0Reply
  • Arthur Neves
    Rental Property Investor · Orlando, FL · Member since 2017 · 56 posts · 33 votes
    5y

    Which margin are you looking when you buy those certificate? What is your target?

    Thanks

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @Yi O.:

    sorry,  what do you mean by Quiet title? 

    Is a way to settle the title to a property

    https://en.wikipedia.org/wiki/...

    0Reply
  • Yi O.
    Investor · Wichita, KS · Member since 2015 · 24 posts · 2 votes
    5y

    Thanks, i feel like i am learning alot today.   btw, if you have the quiet title, can you sell the property? or have insurance on it?

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @Arthur Neves:

    Which margin are you looking when you buy those certificate? What is your target?

    Thanks

    With Tax Liens I can achieve a 16% on average. With Tax Dees much more, I just close a deal with 168% ROI 😎

    0Reply
  • Arthur Neves
    Rental Property Investor · Orlando, FL · Member since 2017 · 56 posts · 33 votes
    5y

    @Omar Bortolato I’ve done tax deed before with a partner. And want to do more. Easy to reason about that model.

    I wonder what’s the risk of the tax lien?

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y

    @Arthur Neves, the risk on Tax Liens is almost null if you do good due diligence.

    The pain in the *** is doing the research which takes a lot of time, this is the reason we developed a tool to help us 😜

    0Reply
  • Annie Bass
    Houston, TX · Member since 2019 · 23 posts · 3 votes
    5y

    @Omar Bortolato I’ve been looking for a company or lawyer who can assist with this in Texas.

    Is quiet title the same thing as color of title?

    1Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y

    @Annie Bass I think this could help you :) https://www.bloom-law.com/wp-c... 

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y
    Originally posted by @Yi O.:

    I am new to tax lien properties.  Can someone provide your thoughts on the following questions, please?  I would deeply appreciate your help.

    1. Are you all hiring a court runner or lawyer to research the properties in order to make sure Tax lien is the only lien against it?   or you all don't think it is necessary?

    2. The properties are not available to see prior to the auction,  how are you determine that is manageable?

    3.  I read it somewhere,  you don't have the title after winning the bid.  It will take up to 15 years to get it legitimized with the title?

    Thanks

     I only go to auctions in person. Nothing online. These have too much exposure and competition.

    I drive by every property that I am willing to bid on.

    In SC I get a deed and own the property.  

    I use excel and the county websites to easily lookup properties. 

    I do not pay for courses or services. Everything is readily available for free that I need.

    2Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    I can remove cloud on title by hunting down previous owners and get a Quit Claim deed from them. I ask for  mortgage release if there was an old mortgage.

    I then get title insurance and can sell with a General Warranty deed. 

    0Reply
  • Yi O.
    Investor · Wichita, KS · Member since 2015 · 24 posts · 2 votes
    5y

    some of my landlord friends dont suggest me to get into it.  Saying it is just too much of work.   I would like to dig in abit and try to find a way in the business.   So far, i only own single-family houses and a duplex ( on investment loan).  

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @John Underwood:

    I can remove cloud on title by hunting down previous owners and get a Quit Claim deed from them. I ask for  mortgage release if there was an old mortgage.

    I then get title insurance and can sell with a General Warranty deed. 

    Yes, the Quit Claim is what we use too to buy properties, with a Tax Deed you don't even need to release the mortgage because it does not survive the auction.

    0Reply
  • Shauna Barnes
    New to Real Estate · Deland, FL · Member since 2019 · 3 posts · 1 vote
    5y

    @Yi O.

    When purchasing tax lien properties (at least in FL), you will need to go through the process of cleaning the title before you get insurance or try to sell it.

    0Reply
  • Peter Walther
    Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    5y
    Originally posted by @Omar Bortolato:

    I’ve been personally investing in tax lien certificates lately.

    If you don’t know what tax liens are, basically when a landowner or homeowner fails to pay the taxes on their property, a tax lien certificate is issued by the municipality that reflects the amount owed on the property, plus any interest or penalties due.

    These certificates are then auctioned off to the highest bidding investor. Tax liens can be purchased for as little as a few hundred dollars for very small properties.

    The problem is that each state and county have its own regulations: they issue sale lists of tax liens certificates throughout the year, and auction dates are also different.

    Also, some states hold auctions once a year, some twice a year, some every month..

    So, I went on a rabbit hole and compiled a list of the next auction dates:

    November: Colorado, Illinois, Louisiana, Montana, New Jersey, Ohio, Pennsylvania, Vermont, West Virginia

    December: Illinois, Louisiana, Montana, New Jersey, Ohio, Pennsylvania, South Carolina, South Dakota, Vermont

    January: Arizona, Louisiana, Montana, New Jersey, Ohio, Pennsylvania, Vermont

    I actually have the whole year mapped out with websites where you can get the sale lists. I did it in a Google Spreadsheet here:

    https://docs.google.com/spread...

    Feedback wanted

    I hope this research buys me a little goodwill in order to ask you for feedback on my new project.

    Since I’ve seen how difficult it is to gather good information on tax liens, I’ve partnered with 2 other lien investors and made a website called FastLien where you can get upcoming sales lists with a click of a button.

    If you end up trying the site, please give us some feedback as we are working hard on it!

    Thanks,

    Omar

    Many counties in many states are using Real Auction for the sale of tax liens.  

    Online Auction Sites - Realauction.com, LLC

    0Reply
  • Jessica Howard
    Investor · Washington DC · Member since 2016 · 26 posts · 13 votes
    5y

    Im new to this.  Is there a particular state that's preferable to purchase deeds in than others? I see that some investors like to drive by the properties while others will purchase online.  

    0Reply
  • Omar Bortolato
    OP
    Investor · Member since 2021 · 18 posts · 10 votes
    5y
    Originally posted by @Jessica Howard:

    Im new to this.  Is there a particular state that's preferable to purchase deeds in than others? I see that some investors like to drive by the properties while others will purchase online.  

    If you can drive by the properties for sure it's a good thing, but it limits your range of bidding, for this reason, I prefer online auctions, I use photo services to have an updated view of the property if I'm really interested in.

    0Reply
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