All Forum Posts by: Deborah Tuck

Most states are cash up front, but I have come across a few potentially juicy deals that I don't have the cash for. Hence the query about funding (in general!).

Ohio! Too expensive in Australia, although I have dome some dual occs and other developments. Rents are too low in relation to purchase price, and I'm not into negative gearing. Hence USA!

ok, thanks. Another thing to watch out for! Don't know how you'd find out before purchase though. My lots have new houses on both sides, so figured services were ok....

have thought about the pre tax sale route, but it's not really an option for me, as I am not local to the area I invest in, and tracing owners can be hard - most tax sale properties have been abandoned for a while, for whatever reason. You'd need to find the ones where financial constraints were the cause - bit of a needle in a haystack! Then negotiations etc - too easy to run out of time when lists are often only published a month or so before the sale, so as I said, not suitable for me (I'm not in CA!).

Back to my original question, maybe I should have phrased it 'will anyone finance a tax deed property before the title is cleared?', regardless of how it is acquired?!

what is a perk test? Haven't come across that one before!

That's why I said 'developed' lots ie lots in a development where some building has already taken place, so services are there. Still pays to look at them yourself though - the cliff / waterway / otherwise unbuildable bit still applies!

The best place to look for these are developments that went bust due to the GFC, where some construction has already taken place. The owner has walked away, rather than pay years of taxes on multiple lots, waiting for the economy to pick up.

Such lots are generally a buy and hold though, not a quick flip!

hi. I am from Australia, and have been doing tax liens and deeds for several years. Agree with all the comments above.

Liens are generally ok at online auctions, so long as you do reasonable due diligence, but deeds you really have to see the properties in person (eg once I was interested in what appeared to be a very nice house, good valuation for land and house on county records but when I did a drive by, found it had been demolished several months before....!). You also have to really get to know the area you are dealing in - good neighbourhoods, bad, values, demand, what's happening business wise etc.

As a newbie in this field, I tried several states / counties before finding one that suited my needs. This involved several VERY long flights and quite a bit of expense. After a few visits / auctions however, you will probably build up enough knowledge and contacts to get some local people to do most of the ground work for you, so it is possible to bid 'remotely', but I still think you need to have that personal knowledge of the area first.

Having said that, if you do find a suitable area and get through the learning curve, tax deeds can be a very lucrative niche in real estate investing!

P.s. And don't totally give up on over the counter properties. I have bought several very nice developed lots worth 30 to 40k for around 3k each, but they take a LOT of searching, and generally not in the obvious counties / states. You do learn a lot from doing the research though, and it won't cost as much if you make a mistake!

Hi. At tax deed sales in some counties, it is possible to put a property 'under contract' ( ie pay a percentage of the full auction price - usually 10%) on the day of the auction, then have around 30 days to pay the rest of the amount.

Is there any hope of getting funding (private, hard money?) in the 30 day window if I pay the 'deposit'?

This is assuming a very good deal eg max 50% ARV.

Enquiries I have made so far always come back with 'once you have clear title.....'. Problem is this can take 3 to 6 months, and apart from the deposit I don't have the rest of the money upfront.

I am thinking of advertising some deals I have found in the market place, but I am worried that if I advertise them before I have won them at auction someone else could outbid me, but if I wait until after I have 'won' an auction and got the property, I can be held in contempt of court, face fines etc if I can't come up with the rest of the money in the 30 day time period.

Any suggestions????

(I hope this doesn't fall under the heading of loan or lender request - this is my first post, and I am just after some general advice and if anyone else has experience of what is / is not possible!)