Duluth, GA · Member since 2014 · 47 posts · 14 votes
I've been purchasing Alabama Tax deed properties for several months and I am running out of resources. I continue to receive these price quotes from the State of Alabama for approximately $5k - $7k. Good rental property that may require some cosmetics but a good buy and hold property for $5k - $7k. Can I transfer the price quotes to someone else? If so, what is the process.
Make sure you know the redemption rules in Alabama, and don't over-improve. Even with a tax deed, the former owner can still redeem by paying the taxes plus 12% per annum interest. That redemption period runs for three years after the investor takes possession of the property. If the property contains a residential structure, the former must also pay the value of "preservation improvements" made by the investor, but not additions or upgrades. The investor gets to keep any rents collected up until the redemption.
You must also make sure the tax sale was not void. The most likely culprits are death of property owner before tax sale, or sale of property to someone else but failure to assess in the new owner's name. In other words, the wrong person's name was called off at the auction. If the tax sale is void, the former owner (or heirs) can redeem for the taxes plus interest, but do NOT have to pay you for preservation improvements. Also, you will have to disgorge any collected rents.
@Denise Evans: when a lien for a vacant lot is sold to the state in 2014 and in 2015 a building is built on, will the Tax Deed be good for the lot and the building? Thanks for your answer.
I have another question on Tax Deeds in Alabama. In this scenario, Investor "A" purchases a Tax Deed at auction for (say) $8,000 then sells it to Investor "B" for $28,000. Investor "B" puts renters in the property and rents it happily for 2-years. After 2-years, however, the original owner redeeems the property by paying the taxes, interest, etc. I assume the original owner only has to pay the original redemption amount which was $8,000 and not the $28,000 and then Investor "B" is out of pocket $20,0000. Is this correct ?
@Peter Torrance - In your scenario if you can find a sucker like Investor B to pay that for the property and that Investor A would fully disclose that they are only selling the tax lien for the property and not providing a warranty deed with clear title then yes Investor B would be on the hook for that 20k. Keep in mind that Investor B would have to pay cash for the property because investor A could not clear the title so in other words, no bank would finance that property.
Thanks Joe, good advice. With that being said, is there any advantage to buying a Tax Deed property ? From what I can see the only person who might benefit would be the original investor "A" if he then rented it out. He could keep the rent money if it was redeemed. But there is no advantage to doing a flip.
If the original investor redeems, you would get the interest on the tax lien. You also keep the rental income. After 3 years, it becomes a tax deed and you could potentially file a quiet title action to gain title. Then its yours to sell with a warranty deed and you could make more money. That's the way to go.
I have found a tax sale that is actually a road in front of a business. What would be the best strategy? Hold the tax deed for 3 years, quiet the title and then offer it for sale to the business?
Would there be any issues that the business is now landlocked without that "road" access?
Could I just sell the Tax Deed to the business now and move on?
What if I fenced the property and denied access through it?
I have found a tax sale that is actually a road in front of a business. What would be the best strategy? Hold the tax deed for 3 years, quiet the title and then offer it for sale to the business?
Would there be any issues that the business is now landlocked without that "road" access?
Could I just sell the Tax Deed to the business now and move on?
What if I fenced the property and denied access through it?
New and learning...
I would just try to sell them the certificate. Unless they are the Taxpayer.
@Ken Barrett I dont think it would be legal to deny access to the property. Did you purchase the tax cert yet for this? I would think that this would be a useless property as you can't deny an easement to a landlocked parcel. I would pass on this if I had a choice.
Last week, I received a total of 18 Alabama Price quotes for properties located in Calhoun and Jefferson County. These price quotes expires October 11, 2018. If interested in buying properties for pennies on the dollar, please message me your email address and I will send it to your email. Thanks,
Hi Brian, I will assigned you a notarized quit claim deed for the property. You take the deed to the county's Probate Office to have the property recorded in your name.
Hello,
I’m new to the group but I have been acquiring tax properties. Can anyone tell me if there is a form that I send in for the “best offer” price?
Thanks in advance!
I bought a tax property from the State of Alabama. The tax sale was 6 years ago June 2012 and was bought then at the tax sale. The person who bought at the tax sale did not quite the deed and the property went back to the State after they had it 4 years quit paying taxes and I bought it Nov 30, 2018 from the state. Do I get the deed and do I still have to wait 3 years to quite the deed.
Does anyone know or have connections with Contractor Investors, those with contracting or demolition business looking to invest in properties in Birmingham? If so please PM me.
@Joe Mclain Hello I went to that specific site before and when I bid on other states it’s easy to find assessed value, liens etc. However I’m unable to find anything on the lands/properties by entering the parcel ID nor the names. I went to tax assessor, gis mapping, appraisal site. Do you do your due diligence on them before submitting price if so where do you get that info for that state???? Thank you
@patricia mangham i think when you say state, you mean county. Yes, you need to search the tax assessors site for that county. Some counties are better than others. Alabama is like a box of chocolates. You never know what you are gonna get. Larger counties have better systems and you will be able to find that parcel number and pull up the land. Takes some digging to find values but you can do it.
@Joe Mclain hello and thank you for your response. No I did mean states because I invest in other states like Florida and you can find everything about the properties in the assessors website with the parcel. In Alabama I had no luck and I searched 3 cities so far from that delinquent list by parcel and name. For example Madison all parcel on that list start with 47 but assessor has no parcel starting with 47... I will keep looking at other cities to see if it’s a pattern and I will also call on Monday
For example Madison all parcel on that list start with 47 but assessor has no parcel starting with 47...
47 is the county code for Madison County, the actual Parcel ID begins with the 3rd digit. Example: a Parcel ID on the state's property list is shown as 471406243001031000, then you'd enter 14-06-24-3-001-031.000 as Parcel Number on the Madison County Assessor's website.
@Thomas Kramer I just found out why the numbers don’t work, it’s because that site does not use the same number as the assessors. So I’m using a third party website that has everything in one . I don’t understand why they would not list the same number as the assessors it makes no sense lol . I have no problems with any other states doing it that way.