All Forum Posts by: Danny Price

@Mehul Shah would you mind sending me a map? I’m curious how 31 spots on 2 acres is laid out.

Investment Info:

Single-family residence buy & hold investment in Gadsden.

Purchase price: $1,800

Cash invested: $2,000

Purchased Tax Deed from Corporate Investor, then obtained a quit claim from heirs.

I plan to rehab and do cash-out refi.

What made you interested in investing in this type of deal?

The corporate investor was considering all offers, so I made a low offer and they accepted. I had already contacted heirs and knew they were willing to give me a quit claim. Their deceased parent had allowed Medicaid to place a lien on the home. However, as the Tax Deed holder, I knew I had leverage with Medicaid.

How did you find this deal and how did you negotiate it?

Through personal contacts with the corporate investor from past dealings.

How did you finance this deal?

Cash

How did you add value to the deal?

Very thorough due diligence, speaking with neighbors, and negotiating with tax deed investor for purchase of adjoining lot.

What was the outcome?

Obtained quit-claims and in the process of getting Medicaid to release lien. Then I will rehab and rent or flip.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

no

I invest in Tax Liens/Deeds in Alabama.  I purchase, rehab and rent.  I pay back the private money monthly calculated as a simple loan. 

I mentioned what I was paying to a seasoned fix/flipper that told me I was paying way too much. (14% on a 2 or 3 year loan)

Am I really paying too much? (compared to what other investors are paying? )

Is there a better way to structure the deal?  

Keep in mind I can't add liens to the property, and if previous owner redeemed, I make money from repairs and interest rate. 

So, I give promissory notes instead of liens. 

Investment Info:

Single-family residence buy & hold investment in Piedmont.

Purchase price: $1,400
Cash invested: $5,000

Purchased a Tax Deed from the state, then obtained a quit claim from heir.

What made you interested in investing in this type of deal?

Low acquisition cost

How did you find this deal and how did you negotiate it?

Purchased from the State Dept of Revenue

How did you finance this deal?

Private Lender

How did you add value to the deal?

Performed all due diligence prior to purchasing.
Purchased property with my funds
Negotiated quit claim from heir of previous owner.
Used Private many for rehab.

What was the outcome?

House is rented

I would buy and rehab 3-4 properties and put them on the rental market. 

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So, I buy a tax deed from investor A, LLC. (they bought it at the county auction over 3 years ago)

and the medicaid lien has been on it for the last 3 years +

once I have it recorded, do I need to inform medicaid of anything? 

Is the lien un-enforceable now? 

If I get a quit claim from an heir, and record that, is there anything to worry about from medicaid? 

@Denise Evans if Medicaid redeems from an investor that purchased a tax cert OTC do they have to pay for preservation repairs? 

https://revenue.alabama.gov/property-tax/taxes-administered/tax-delinquent-property-and-land-sales/

Im trying to understand how an investor "self-redeeming" a tax lien or deed would be a good idea. Maybe I've been mis-informed. 

I'm in Georgia, a tax deed state. When tax deeds are auctioned off here, they typically sell for more than asking price (overage). The penalty in GA is 20%. 

The scenario I've heard about is an investor buys a tax deed (with overage), and for whatever reason determines he doesn't want the property. So, he redeems the tax deed himself. He will lose some of his bid amount, but thats better than keeping a property with some major issues (structural, or environmental) . 

The idea is he will get most of his money back. 

However, I've also been told that the original owner is entitled to the overage, even if THEY redeem! 

I don't see how both could be true.