Is anyone buying Tax liens/Tax Deeds here?

Question

Hi Guys,

I'm looking at getting into Tax Deeds etc but I don't see anyone here talking about it a great length. Is anyone investing in those here?

Thanks,

Enda

John Underwood · Answer

My wife was a manager at the hospital.  I was an Electrical engineer.

We quit our jobs and have gone into early retirement from  W-2 jobs due to the houses I have acquired cheaply for cash from tax sales. Most of these are now rental houses now.

So yes there is a living in it.

Enda Hoolmaa · Answer

Hi @Ned Carey

Yes, Im starting out and have consumed about as much free info as I can at this stage. Iv'e lined up a few properties so my next steps are to attend an auction online for the first one and see what's actually happening, how much the properties get bid up etc. Just wanted to see who else was out there!

Ned Carey · Answer

@Enda Hoolmaa actually ther are a lot of conversations here about both tax liens and tax deeds.  Look for conversations by @Denise Evans  @John Underwood among others. I write a lot about tax liens.

It is very imprtant to know the specific laws in the state you are buying. It is not always as simple as you buy the tax deed and you now own the house and can do anything you want with it.

Roy Oliphant · Answer

Hi Edna,  Texas is a great place for Tax Deed investing.  Arnie at txtaxsales dot com is the expert.  He has some programs to help remote investors.

What would you like to see in a BP group for this?

Enda Hoolmaa · Answer

Hi Hunter,

I have registered with a few counties and am considdering flying to Texas to see the properties before bidding. Iv'e researched the tax arrers, google street view, zillo market price and other leans/exemptions on the properties already. I was wondering if there was a community doing this through bigger pockets or am I alone in the wild?

John Underwood · Answer

There are a lot of conversations on BP about tax liens. Use the search function and see what I'm talking about.

Bruce Lynn · Answer

@Edna Hoolmaa   There are people who visit Texas to buy tax deeds, but probably at most sales 90% of the people you will meet are from the local area......sometimes you get lucky, sometimes you don't.    My guess in Texas is that for most people it is more of a hobby, than a full time endeavor.

Remember you have to pay in cash or cashier check sometimes within minutes, sometimes within a couple of hours of the sale...same day.

I think one of the tricks here is each county has their own sale.  Most at the same day/time.  So generally tough to go to more than one sale a month.  You have to choose your battles there.  Also typically you will need to hold the properties two years before resale.   Very few redemptions, so don't count on the 25-50% interest ideas here.   The other trouble is properties that get pulled/paid before the sale....so your best laid plans for the 1 beautiful house for sale this month, gets paid day before the sale.  So you can spend a good amount of time and money, only for your best laid plans to get blown up the day of the sale.   Don't plan on the minimum bids.  Sometimes you get lucky.

There are plenty of discussion here on BP, although mostly for a handful of states.....popular experts seem to be from MD, SC, AL, LA, and TX, although there may be a handful from other states.   I've also seen a couple of experts for OH and FL, that are not regularly on BP.

I'd look at where you live, and if for some reason it is not an ideal place, look at the surrounding states that are easy to get to.   One thing I often advise is know what you are buying.  Not impossible to do long distance, but sure seems to help if it is in your backyard or someplace you can get to quickly.  Where you know what is going on in the marketplace, where you know the demographics, where you know values, where you know some of the other players.

Occasionally I believe on the Tax Sale Resources website there are some white papers that explain how auctions work in different states.

Happy to assist you in Texas if you have questions.

John Underwood · Answer

Nothing through BP that I have ever heard of. Many people on BP are doing it independently.

Absolutely drive by any property you are considering bidding on. Update your list right before and daily when doing your driving to minimize driving by properties that have recently redeemed.

Is anyone buying Tax liens/Tax Deeds here?

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