All Forum Posts by: Joe Mclain

So you need to know when the tax sale took place.   The owner has a right to redeem for 12 months after the sale.  I think after the year you might have to foreclose on the owners right to redeem but you need to check on that.   You still have work to do after receiving the deeds.  You need to consider that you don't have clear title so factor in a quiet title suit costs to your purchase.   That takes time so you can't sell immediately.     Also check for IRS liens and any taxes due. Best of luck

Joe

@Kamaria M. Johnson - some states are Tax Lien States meaning they are hoping to buy the lien and that it gets redeemed at a great interest rate. 12% in AL. Some states are Tax Deed states and those are buyers trying to bid on the property like you stated earlier.   In GA, its a tax deed state so those folks want the property.   After you purchase a GA tax deed, you have a 1 year period where the owner can redeem the property.  If the owner redeems you get 20% on your money.  If not you get the property.

Here's a good link to check out on the States.  Best of luck

http://taxlienlady.com/StateGuide.pdf

Joe

@Braden Jones so lets say you drive by one of those properties that are abandoned.   2 things that I would do.   First, write down the address then go and look up who the owner is in your tax assessor's county site.   In Arkansas it might not be called a tax assessor but you need to find the county entity that tells you how much your taxes are.   Then after you find the owner on the tax rolls, contact them and see if they want to sell to you.  Offer them low ball offers to pick up the property.   Then if they accept your offer, have them Quit Claim Deed over their property to you.     

Second, google land banks in your area.  Several areas of AL have land banks where the city has bought blighted property and will let you buy them from the city to renovate.

Best of luck

Joe

I would look at the Tax lien lady's state guide and check out the state that you are interested in for tax liens/deeds.   Each state is different.   Some states have the foreclosure as part of the process to foreclose on the original owners right to redeem.    After the tax deed is attained, there may be a foreclosure or barment, then you typically need to quiet the title.   Title will give you the ability for your end buyer to get a mortgage on the property so that you can give your end buyer a warranty deed instead of a quit claim deed.   Title is not typically necessary for you to rent out the property if you intend to keep it.  Hope this helps.

@Jason Kaye - Most states have something called a redemption period.   According to the Tax Lien Lady's state guide, CA doesn't have a "redemption period" per say, the owner can dispute the tax sale up to a year following the sale.  So you can move fwd with your plan, but just know that if you the owner disputes the sale and wins, any improvements that you make to the property may be at risk.   I would check the rules at your county to backup what I am saying.   The CA notes from the Tax Lien Lady's state guide are below.

California is also a true deed state with no redemption period and no interest rate or penalty. However, even though there is no redemption period after the sale, the owner (or a lien holder) has 1 year to initiate proceedings to challenge the validity or irregularity of the tax sale. The county treasurer/tax collector conducts tax sales. The minimum bid price is the total amount necessary to redeem, plus the costs of sale. Properties that are not sold may be re-offered within 90 days, or at the next scheduled sale at a minimum price that the tax collector deems appropriate. A "tax deed to purchaser" that conveys title free of all encumbrances of any kind existing before the sale, with certain exceptions as stated in Section 3712 of the California Revenue and Taxation Code, is issued to the successful bidder. State Guide to Tax Lien and Tax Deed Investing © Copyright 2010-2016 Tax Lien Consulting, LLC. All rights reserved. 22 You must be registered in order to bid and, for some of the larger sales, you may need to register a few days ahead of time, so check with the county tax collector. It is advantageous to register early for the sale because there may be limited seating and usually the early registrants get better seats. This can be important at an auction where many people may be calling out the same number and it is up to the tax collector or auctioneer to pick the winning bidder among them. Most counties in California have their tax sales online. These sales are conducted by ************** and registration is done on their website. In order to be eligible to bid on a parcel, a deposit of 10% of the minimum bid is required. Because of California state law, the property does not revert to the next highest bidder. All sales are final and there are absolutely no refunds. Be careful bidding online, a mistake can be costly. Legal action is taken against any bidder who defaults and such bidders will be banned from future auctions. Due to the extreme competition of online auctions, these sales have become very competitive. Most of the properties that do sell at these auctions sell way above the minimum bid

@James Borden Being in Texas, you might want to try the tax deed route.   Start with your county tax assessor and research what the local rules are, where they hold the auctions and what the properties are selling for.   If you hit a big crown in your county consider going to the next county.  In TX, you guys have a 1 year right of redemption and I think your interest rate is 25% which is really good.   Join the Bigger Pockets tax deed forum and learn more.  Best of luck and take care.

Joe

@Eamon Sullivan - First, I would ensure that what the seller has is the deed and not a tax lien certificate.   Second, I hope you have looked at the 50 properties and agreed a price on each property.  So that he would sell it to you at price A and you sell it to your buyer at price B. The difference is your profit.   Third, there is a guy in FL, Scott Todd that might be a good resource for selling some of these properties.  Now he is not the end buyer because he is going to need some room to sell to his clients.    If you can't find his info, let me know and I will try and find his site for you.

Joe

@Mildred Johnson - I too am kicking the tires on LA and LG.   If I lived in Houston, there is a guy from Canada Dustin Hahn that buys a lot of Tax Deeds in Houston.   That might be a good resource for you.  The auctions there are quite competitive so I would do my homework.   Best of luck.

@Mena George In FL some counties have deed and lien sales online.   I don't have any information for Bay county.   I believe that that there is also a process for "Stricken off" properties like AL but again that is a county per county process.

The fence question.   You are thinking about this as a business.  But when you own a tax lien, you don't own the property.  So think about this.  If I own the Tax deed and not just the tax certificate, then I would file to quiet the title.  Then after I had title, I would think about the fence.   So If I have the tax deed and file for the quiet title, I believe that @Denise Evans mentioned that the owner can still redeem and they are not required to pay you back for your legal fees related to the Quiet title.  So that is why I question the fence.

FYI>>After you own the property then you can write that off on your taxes but I am thinking that you are referencing the owner paying you back for those expenses.  

@Mena George - Let me take a guess at the commercial/mf questions.   I think that the more you improve the property like putting in your fence, the more you take risk that if the owner redeems, you won't reclaim that expense.   As far as the FL question, each state has different tax laws and treats their tax liens or deeds differently.  In the case of FL, its also a case of county per county.  So some FL counties are on realtaxlien.com but you would have to first find the county you want to invest in and second, look up the county assessors office and find out where they auction off their properties.   Best of luck