All Forum Posts by: Michael Oldehoff

You would have to be super creative to get regular monthly cash flow out of tax liens (It is doable and I have ideas, but it would be a weird proposition). Part of the general downside in tax liens is that your money is tied up for a generally unknown amount of time

Nowadays you can find out what is going to auction beforehand and do endless research until you are comfortable with what you are purchasing. @Jerry K. noted many scenarios in which your investment could be at risk, but the one I run into the most is other existing liens on the property held by the state or local municipality which are not wiped out in a foreclosure in Arizona as per state statute.

You can end up owning a $50,000 piece of property with limitless other liens. EX: Department of revenue, Department of Economic Security (child support), Medicare (AHCCCS here in AZ), abatement liens from property clean up, etc. These aren't always deal breakers, but they do make you sink more time into the investment.

Welcome to the site. Spend some time reading about each of the different niches available to you to get into. Some may appeal to you while others will not.

@Jerry K. It isn't overly complicated. We were into the lien for a little over $200k. We attempted to foreclose on it but were told the property owner filed bankruptcy (she had a whole mess of properties that would get caught up in it). We hired an attorney to fight to keep that specific property out of bankruptcy court to no avail.

3 years later and $10k-$15k in attorney's fees we got paid out of the bankruptcy sale a little more than $220k. A very bad situation for our money to be in. This was a commercial property.

@Jerry K. Bankruptcy is the real killer. We had a huge lien tied up in bankruptcy for 3 years up until last Friday.

I'm not sure about NY but here in AZ anybody with interest in a property can pay off the taxes. (In reality if you show up to the county treasurer with money they will take it)

Hey look. More Phoenix people! yaaay. Welcome to the boards.

The title issues are that they are acquired via judicial foreclosure and anyone party to the foreclosure could challenge it up to a year later. We aren't worried about that because we do our foreclosures correctly and challenges fall short, but it does prevent us from getting title insurance to sell the property.

We acquire properties through judicial foreclosure and thus some of the properties we have acquired have title issues. For the most part we aren't worried about actual challenges to title (the foreclosure proceeding) but we haven't been able to get title insurance on many of our properties to sell them.

Would putting it through a trustee sale clear title if we bought it back ourselves? Is there any other methods of clearing title that you have had success with following judicial foreclosure?

One of the guys in my office went on and on about it on Friday. He loves the stuff. He said if you do everything (including the roof) it even keeps your attic room temperature (and we live in Phoenix, Arizona).

I don't have any personal experience with the stuff though.