All Forum Posts by: Anthony Yannucci

Hey Kevin...I do not know much about NY tax deeds but have been investing in FL with tax deeds for about 5 years now.  For education, I would consult the forums and info here on BP, then branch out to Google and find as much as you can for free about tax deeds.  Although you can purchase tax deeds and properties in other states, I like to stick to my own backyard so I can look at the property if need be, and oversee the renovations if I rehab.  Plus I know the area, comps, good and bad neighborhoods, etc...  Always do your due diligence...when you find a county to purchase a property in, you will usually go through the court of clerks which is where you can uncover how much the liens are on the property, and any special nuances which might prevent you from purchasing it.  Good luck!

Not sure exactly how it works in NJ, or if it is any different than in FL, but the mortgages get wiped away...you are responsible for any back taxes on the property and possibly liens assessed by the county--such as code violations.  As always, do some research--it never hurts to learn more.  You won't know it all, and sometimes experience is the best teacher...just make sure you do not make a HUGE mistake.  Good luck!

 Sure thing!!

 Sorry for my vagueness...what I meant by the end result was are you clearing up the title issues yourself without the use of an attorney?  I know what you mean about the liens.  I try my best to research them on the county's website but always plan on 3-5% of the bid for county liens.  I recently got lucky and bought a tax deed and there was a renter in there up until just after the sale, so they took care of the place so I am pretty sure, those mowing liens are not on the property.  10% being charged by the county seems real high!!

 I buy through online auctions only...makes it easier doing it from my home computer or any computer for that matter.  I look at the county's website for the tax deeds up for sale, determine which are the ones that are of interest to me, do some research online as far as location, I look at pictures, estimated value, etc...  If I like what I see, then I notice how much the back taxes are and what I am willing to bid up to.  Then attend the auction, and hopefully win the bid.  You can get the quiet title--this just clears all issues on the title and then someone who is getting a loan to buy the property will have no issues with the bank getting the loan.  This takes time and money though.  I am looking into simpler and quicker methods such as finding an investor who will buy it as is and do a quit claim deed, or now I am reading up on another method where a company will ensure the title can be insured and they can do it within 21 days.  This allows you to sell and move on much quicker.  But if you want to buy and hold, put renters in there and use some of their rent to pay for the quiet title--then you can sell if you want.

 Hey Jeff...no problem!  With buying liens, you are buying a piece of the property...like buying a stock in a company.  You don't own the company, but you own shares.  The liens could yield you some very good interest if purchased correctly.  It is a good investment tool.  In Florida, when the lien sale comes up, you start at 18% and then the bidding goes down.  So whoever is willing to accept the lowest interest on the lien wins.

With a tax deed, you own the property outright and all mortgages and most liens are wiped away.  IRS liens and county liens, like the cost for the county to mow the property over the years, remains.  In FL, once an owner does not pay taxes, I think it is 2 years before it can go up for sale.  This is when the liens are purchased.  If the owner pays the back taxes, the line holder gets the interest plus what they paid for the lien.  Once the time has expired, and it differs in each state, then it goes to auction, and the highest bidder wins.  In FL, if  you are the winning bidder you get the property and a tax deed comes to your home within a week.

My first deed I bought in Lee County for $22k, put about $25 into it, so I am all in for about $50k.  I went through a quiet title, which took 6 months, so we rented it out for $700 to help pay for the quiet title. If I were to sell it, I think I could get $75k.  With the rent this past year, we collected $8400.  It is still being rented.  Sadly, it did tie up my capital.

I just purchased another one in December of 2015 for $40k, needs about $5k in repairs, and could easily sell it for $65 as is.  If rehabbed right, a realtor told me we are looking at low $90s.  So learned to buy, rehab and sell or sell as is.  This way it frees up my capital for the next sale.

Now that being said, those properties came with a lot of education on tax deeds, the auction, the quiet title, and I am still learning.  Not to mention a lot of researching properties and analyzing to make sure you know what the house is worth, and what you are willing to bid and not going much higher than that.  Always buy in good neighborhoods and research the liens on the property.

Hope this helps!

 Hey Ryan...FL tax deed investor.  I am curious about your comment about doing your own title research.  What is your end result with the  self title research?

I like buying the tax deed versus the lien...I am still relatively new with tax deeds, but I buy in FL because you get the deed 3-5 days later.  You own it!  I am still working on trying to clear the title quicker and sell these properties but there are lots of options.  You can sell it as is right away with a quitclaim deed, you can rehab it and then sell it or you can rent it once you rehab it, and use that money to get a quiet title (which I have done on my first tax deed property).  I just purchased another one, and I am trying to sell it quick for a quick buck, but if not, it has great potential for a big profit with little rehab.  Good luck in whatever you choose, but I think there is money to be made in tax liens and deeds, but as always, you need to do your due diligence!

Congrats on the "leap"! Can I ask a stupid question? When you throw out a bid, is it lower than what the REO list price is? Do you use a certain percentage lower or do you stick with the 70% rule?

Thanks Wayne for the info!  The property is here in Florida.  I thought it quite odd as well that he is a broker and has not recorded the deed.  I am going to speak with the gentleman today, and tell him my info and see what he wants to do.  If I do want to go forward, I will PM you the info.  Thanks Wayne!