All Forum Posts by: Charlie Vess

Matt - it depends on the respective county. For some counties I was allowed to offer no less than 50 - 75% of the taxes owed predicated on how long the property has been on the list or OTC. In other counties, they will accept ANY offers within reason. I have been acquiring properties (land) for approx 20 cents on the dollar. 

Reference the Bexar county property, I suspect that it will have to go through the auction process before the Tax office would entertain a discount in the taxes owed. You might chx with the governing law firm and/or Tax office. 

Oh...I have also participated in TX cnty auctions whereby no one bid on the tax lien. The Sheriff (or Judge) was given permission to strike the tax and re-offer the property at $100. Then the bidding turns into a feeding frenzy. I've seen bids get bid above the original opening bid of which no one was interested.  It's a nutty world. 

Also, as the Landlord you do not have to give a reason for declining the application. Remember to submit the generic letter addressed to the husband just to cover yourself. The Lease Agreement should spell out and be very specific about who is to reside at the property. If you continue to be "very nice" to them, you run the risk of losing your other tenants. 

Drew - with respect to your question concerning tax liens ~ the answer can be wide ranging dependent on which state you are investing in. And too, think of it from this perspective....if you are looking to earn interest on your money then tax liens is the way to go. This is also predicated on the interest that you are willing to accept at the auction. Should you decide on this investment, do plan on your funds staying invested until the redemption period for that State n/or County. Most important, purchasing tax liens does NOT relieve you of your due diligence. That is a MUST!!! Good hunting! Charlie

Greg - I had a similar situation with respect to Tax Liens that were purchased in Alabama. This led to conversations with the BK Trustee (representing the former owner). Two questions that the Trustee raised were: 1) how much was the properties worth and 2) what would be the payoff? For the payoff, I packaged the deal with all expenses including the interest that would accrue. They ultimately chose neither. After the BK was finalized I then engaged an attny to obtain releases from all previous lien holders. All said n done it took roughly 3 yrs to finalize. My overall costs are approx $17K. My anticipated return should be around $70K. Best! Charlie

Christina - don't get discouraged about the Texas Tax sales.  Unfortunately that is the downside of living in our Great state.  I too have struggled with having to decide which county tax sale to attend or do I hire a proxy to represent me etc.  As to strike off lists, I have had great luck finding diamonds in the rough ~ without ANY competition.  Something else that is not considered....in locating a potential prop did you call the law firm and ask what the allowance is for submitting an offer?  Some counties will prescribe to the 50/75% rule.  Meaning if the prop was just stricken off then they will only accept an offer not less than 75% of the taxes owed.  If over one year then they will consider no less than 50%.  Now here's where it gets real interesting.  I have visited other counties and asked about submitting an offer.  Their answer....you can offer whatever you want to submit.  So don't give up.  In fact be really curious.

Now I am headed out the door to review some props and if good will drop off my sealed bid with the county.  What's my offer? Somewhere around 20 cents on the dollar.  If they are accepted ~ that's phenomenal!  If not will resubmit.  

I need your input for transacting a Tax Deed. Situation is that over the years I have been buying n holding Tax Liens n Deeds across the US. With the RE market stabilizing in the San Bernardino Cnty, CA area I reached out to the neighbor. He had agreed to purchase the lots adjacent to him for $8,500 cash. The hiccup is that I am in Texas. What is you recommendation for transacting the Tax Deed from across the States? My inclination is to locate a Title Company in the Redondo Beach area that he resides or in San Bernardino Cnty where the title will be recorded. The other would be locate a realtor to handle the transaction for a small fee.  Do I transact this through a QC or.....? Any thoughts from the seasoned Tax Deed sellers?

Thanks Michael! I was not aware of this site until having met a BP participant at an REI meeting. This will certainly help with my "other" questions.

Bill,

Just a reminder that Texas has a 6 month redemption period from the date of sale unless it is designated as homestead or agriculture of which it would revert to the two year redemption period. Yes the 25% penalty would still apply to the total sum for the 6 month period or 50% if it falls under the 2 yr period.  If the property is struck off at the sale, then it is open game for anyone to purchase.  Again, depending on the County the buyer could make an offer below the taxes owed if it is struck off.  On the flip side if the property goes to auction and it gets bid up over the taxes owed then the overage amount would be shared by the owners of record.  Talk about a feeding frenzy.

I agree with your thought of building a 4-plex or quadplex.  Hopefully you have factored in the utilities.

Best!

Bill I too agree with the posts about walking away.  Now I don't know if it might be a consideration to have your Aunt and/or G'mother QC their psn to you.  Again that would put you in the middle.  The other issue is what is the property worth vs the taxes owed?  I have purchased Tax Liens in Texas n can tell you that each county has their own rules.  Meaning one county may require full payment of taxes vs other counties that require a certain amount based on timeline while other counties will allow whatever bid (for the taxes owed) that you want to submit.  Some counties rely on the School districts to make that decision while others will rely on the county commissioner court.  I realize that there is an emotional attachment to this property so the next question is is it designated as agriculture?  If so, once it goes into redemption the relatives will have 24 months to pay the tax plus penalty.  So.....end result is could your relatives set a price to all to buy and if no takers then sell it to you?  Just some suggestions.

My name is Charlie. While holding a job that had me traveling all over the globe over the past 25 years, I began my hobby of investing in real estate (SFR's) 15+ yrs ago. All in all, the rentals has been very good to me....and at times a bit challenging. Ten years ago, I embarked into Tax Liens / Deeds. This too has been very rewarding. Now it's time to reeducate myself in flipping properties, thereby reducing my inventories.

Gratitude to all and towards your journey of success!