All Forum Posts by: Greg Carrier

So we participate in tax sales.  We have done several states but right now spend 99% of our time in Indiana and Michigan.  As you may or may not know, when you buy a property on tax sale, you do not get a warranted deed.  You get a tax deed which is really like a quit claim deed (I am not a lawyer there could be some subtle differences).  Without a warranted deed, you can generally not get title insurance and consequently cannot sell the house to someone getting a loan for the property.  In order to rectify that, you need to quiet the title.  We have done so both in Michigan and in Indiana.  In all of our Indiana retail sales we have used attorneys.  We have been aware that some title companies also offer this service and have used one successfully in Michigan to quiet a title.  Here is where one of our current sales went off the rails.  We chose a national title company to quiet the title.  When we use attorneys they follow the rule of Indiana law which requires that all people with a possible interest in the property be contacted.  How do they contact those people?  The requirement is to see what is recorded at the local recorders office and send letters to those people and to also post ads in the paper of record for the area.  What the title company chose to do is hunt down the previous owner who had abandoned the property and moved to another state.  The house had $28,000 owed on taxes and penalties on a house that only had an annual tax bill of $1,340.00.  The roof had failed and the house had been empty for years.  But wouldn't you know it, when the overzealous title company found the old owner, he saw a way to make some money so has now announced that he will be suing us and the county for "wrongfully taking his house."  Here is the thing.  the title company promised a 15 day quiet and has made a mess of this.  We will win the suit, but it could take months, and the buyer who has already had appliances installed will have to get them out and continue renting until this is ironed out.  I share some of the blame for presuming the title company would follow Indiana law and for not having this done prior to listing.  I am sure by the Fall this will be in the rearview mirror.  I am posting it just to give a heads up to the rest of you so you might avoid this in your own businesses.

@Braden Coleman $900 - $1,000 though I presume if I pushed it, we could get it for less.

We have purchased several homes with tenants including section 8 and it has all worked out fine. 

@Braden Coleman I do use an attorney.  I know lots of people have different opinions on that but it is one of those things  (like plumbing :) ) I don't like to deal with.  I also don't want to turn an eviction into something personal so the attorney can be the go between when we end up doing a side deal for them to have additional time to get their stuff out. Some people might think I am avoiding personal conflict  (and they are probably right)!  One other thing that you may find others do as well.  I have never gone after the amounts owed to me.  I am sure I would win those as well but I skip it for the following reasons:  1.  I am already winning.  Every year I have more houses and more money.  The amount owed to me won't really change that in any measurable way.  2.  the claims process takes another day in court in Indiana so it's a pain. 3.  The tenant already is broke so I may never see the money anyways, and 4.  I generally want the nonpaying tenant out of my life forever and as soon as they can disappear in the rearview mirror, the faster I will forget them and get on with what I need to do going forward.

All that said you really don't need an attorney

Your concern about damage is a legitimate one as at least in Indiana you cannot insure a house you have a lien on.  That said I have never had anyone intentionally do damage to any of ours.  It may happen some day but so far so good.

Good Luck

@Chris B.  It sounds like you are fine, but just to answer a question you posed above.  If you fail to do the notifications then yes your lien will be come worthless.  I know this from personal history  :)  All the same tax liens have been very good to me and I buy more every year including one I just got on Friday in LaPorte County.

Good luck,

Greg

I own 25 rentals around South Bend  (and surrounding cities).  The rental market here is very strong.  We add a few more each year and intend to continue doing so.  I will message you in case you want to talk off line.

@William C. Your right, as a former CPA you can get some tax savings with and LLC and some protection. They are cheap so just do it. You will want one when you have 100 properties so just get it done now.

Good Luck

It's easy peasy in Indiana.  We have done some in Indiana (and in Michigan as well) for non payment.  In most cases the tenant does not show up.  When the tenant does show up you win anyways because they are not paying rent.  They are ordered to move out and sometimes strike a deal with us to extend that time which I generally go along with.  If they don't move out, the police are called stop by and (knock on wood) everyone has always left then.  One caveat, if tenants leave stuff in the house you just can't throw it away when you walk in.  Theoretically you have to hold it and try to get ahold of them.  if it is obvious trash we do throw it away immediately.  The rest we may put in a corner for a few weeks and see if the tenant wants it by contacting them and keeping track of our contacts or attempts to contact.  Theoretically (and I think legally) you can put it in storage and charge them storage fees though if they are not paying rent it is not like they have money for storage fees.  In all the evictions we have done, we have one all in less than five minutes of court time a piece and only had one case where the tenants wanted stuff they left in the house.  Hope that helps.

One piece of advice, don't sweat all this stuff up front, just start getting houses and deal with issues as they come up.  And when they do fix them and don't take it personally.  I believe Henry Ford said, "Obstacles are what you see when you take your eyes off the goal."

Good Luck

We use Meridian although have never done a subject to deal with them.