All Forum Posts by: Ashish D.

Quote from @Chris Seveney:

Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.

 As an investor who invests in distressed debt. What they are showing in that link is normal. You cannot believe how people live.Our typical trashout is 3-5k, most of time water is not on or power, they use the house as one large toilet. Seriously its worse than animals living in these places.

But go ahead and bid it as if it is nice and clean. If you do not bid it as a full gut rehab including removing the floors and joists, good chance you can lose $.

I always assume they're that bad. It is much easier when you can at least see the inside.

Hahaha about the animals. That's the house I bought, although I knew full well what I was getting. This is me sweeping manure out of mine.

Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.

t's all about price. This is nothing, it's just mostly sheetrock and cosmetic. If it needs 50 sheets @ 40 bux per well so what 2k . 20k I would have this house done in two weeks.  I have purchased about 100 from sheriffs' auctions (500 or so overall)  If you can't get in (we get in most) you assume it needs everything, so buy accordingly.  

This video is just shows how clueless the rest of the world is just like the flipping shows. Its sheetrock! THIS is what we do.

We purchased this one, we could not get it. We didn't notice there was a hole in the roof as there was snow. Wel looked what we walked into

. However, we purchased accordingly and still flipped it for a huge % gainer. 


Before/After Rehab Photos (ibuy********houses.com)

@Ashish D.

I quit my day job as an electrical engineer from buying tax liens and getting houses for cheap that I turned into rentals.

Quote from @Ashish D.:

I've read through hundreds of post on this website about Tax Liens and Tax Deeds, and almost every single one is discouraging investing into it stating myriad of different problems and nuances. However, when you search the internet, you find hundreds of posts and documentation talking about investors being so successful with it, big ones and small. I've spoken to few investors who have made tens of properties using it. Why are posts and documentation on this website particularly advising against them?

EVERY aspect of real estate investing has been over hyped, over sold, and over simplified.  There is money to be made in EVERY strategy; however, not by EVERYONE.  Almost all require the following in some combination to execute successfully on a sustainable basis : (1) CAPITAL (2) KNOWLEDGE (3) EXPERIENCE.  The gurus” selling mentorship’s and “canned” programs to a inexperienced investor oversimplify the strategy; ignore the difficulty; incorrectly claim that the education they provide is sufficient for success; lie about their own qualifications and experience and success; belittle “real” business/financial/real estate education and provide a totally unrealistic picture of lifestyle, effort, and chance of succeeding.  

The people I’ve encountered in my 40 + years as a real estate investor and private lender who are successful have the following in common
They are educated as to principles of real estate; real estate law; and real estate finance
They LEARN something new about real estate investing almost every day, and are open to realigning their strategy, tactics, and portfolio to encompass new information and knowledge
They SPECIALIZE either in a strategy, property type or geographical area, and become EXPERT in that area
They have survived real estate “depressions” where property prices have dropped 20% - 50%
They understand the difference between real estate investing, operating a real estate BUSINESS, and having a real estate job.
They network, for knowledge, capital and most importantly DEAL FLOW

The key thing to consider when you watch a YouTube video, take an “introductory” seminar, or read a guru’s website, is what is the subject persons BIAS?  If he’s selling you something, then there’s a very good chance his “pitch” is not truthful.  There are some very good localized mentors that hang around BP and contribute with excellent advice and information on forums, podcasts, and articles.  But something happens when and if they decide to 
go national”.  Those guys end up buying marketing programs from one of a few specialized real estate marketing organizations out of either Las Vegas or Salt Lake City; and the result is the cost of their programs goes from $3000 to $40,000, the quality of their information go from a 8 to a 4, and once you’ve entered their program all your contact is with an employee while the guru is out giving seminars, workshops, and making videos.  

Isn't FL a bid down state?

I have a partner that lives in Miami. He doesn't buy liens in FL, but he does in other states.

That says a lot to me.

Quote from @Ned Carey:

@Lessie Boyd welcome to BP. Which state do you want to invest it makes a big difference 

 @Ned Carey I was looking into Florida

Hey bigger pockets, I was just wondering what some older more experienced real estate investors thought about the idea of buying tax deeds. I’ve seen a lot of positive posts and information online about tax deeds but I’m sure there are some hidden negatives as well that gurus online won’t talk about. 
Any advice would be greatly appreciated.

Quote from @Ashish D.:

Quote from @Jay Hinrichs:

Quote from @Ashish D.:

Quote from @Kevin Sobilo:

@Ashish D., I think because BOTH things are true! There is opportunity but also a lot of issues and risks. So, the opportunity is not well suited for a new investor who isn't knowledgeable about those risks nor prepared to handle them.

There is opportunity building houses, but should someone who doesn't know which end of a hammer to hold start building one himself?!? The issue isn't whether there is opportunity its whether that individual investor is well suited and prepared to take advantage of that opportunity.

For example, here is a common scenario in my state. Many tax sale properties derive from estates where the heirs take no action and the property goes to tax auction. However, MANY buyers do not realize that state inheritance taxes need to be paid on the property. There is no recorded lien, but that debt is attached to the title of the property and its based on not the sale price but assessed value (because of the passage of time since the death of the owner) and also based on WHO inherited.

So, you buy a property at tax sale for $50k thinking you got a nice deal, BUT the heir to the property was a nephew and the assessed value is $200k. So, there are $30k in inheritance taxes due to clear the title! Suddenly that deal isn't so good.

That is a super common scenario. There are a number of issues with tax sale properties and I'm sure they differ somewhat between states. So, it’s just not an easy or simple way to acquire deals, especially for a newer investor. 

So why is this a deterrent? It comes down to due diligence right?

well it comes down to there is only so much time in a day..  some counties will have 2k properties going to auction.. DD how are you going to do that..  ?  but yes it does come down to that.. in tax cert states keep in mind many insurance companies or large corps or hedge funds will bid down the returns to 3 to 5% there by cleaning the clock of every private investor who thought they were going to win at auction.. so what happens in reality is people burn out doing DD and never getting anything .  then you hone in on a certain property and the day before the auction it gets redeemed just wasted all that time. to do this successfully you have to hone in on a 100  props thinking you might get one or two. But hey give it a try see how it works does not cost you anything but your time.  Go for small counties that do not have as much competition as the large ones. thats were I would start and thats where my Dad would buy 100 plus props a year at tax sale.

Most of the online bids can be done from the comfort of your home and you are able to preset your max bid and the system can simultaneously bid for you on all properties across all counties at once, so that may only apply to in person auction. Thanks to Covid very many of top counties do this online now. You do have to put in the time to research the property and confirm if you want it or not, just like traditional purchase.

no argument from me  let us know how you make out.