Tax Sales / Line of Credit
Hi all, I am trying to understand this process as an investor. If I have a line of credit how can I purchase a tax sale home at the courthouse? I understand you use the LOC as cash but what can I do after that? Say I purchase and fix up the property can I sell it immediately or do I have to wait 2 years for the redemption period? How do investors use their LOC to buy homes at the tax sales and turn around and flip them? I am worried about the 2 year redemption period, or can I just disclose that in the sell of the home? My goal in theory would be to use the LOC to but the tax sale home, fix it up, and then sell it immediately, is that possible?
Most Popular Reply
I haven't done one of these in quite a few years, but what I remember is this:
In Texas,
1. There are two different redemption periods. 24 months for primary residence and 6- months for non-primary residence.
2. You can sell the home before the redemption period expires, but you'll have a difficult time getting title insurance.
3. You can purchase the previous owner's redemption rights and effectively eliminate the wait time to sell and the buyer get a title policy.
In Texas,
1. There are two different redemption periods. 24 months for primary residence and 6- months for non-primary residence.
2. You can sell the home before the redemption period expires, but you'll have a difficult time getting title insurance.
3. You can purchase the previous owner's redemption rights and effectively eliminate the wait time to sell and the buyer get a title policy.