All Forum Posts by: Joe Donohue

First pick a state.  I suggest focusing on counties near you.
Attend as many auctions in person as you can.

When you want to branch out into other states, learn the tax sale procedures first for that state.  Pick your counties.  Go online or call the counties you are interested in.  Get current and past lists.

Review past sales:  How many were in the advertising list vs. how many actually sold at sale?  What prices did they sell at vs. market prices?  Also, research WHO is buying.  I analyze bidder lists all the time.  Patterns emerge.  When I walk into an auction I know what/who I am up against, even if I've never been to that state/county before.  There is nothing wrong with getting to know your competitors: what they bid on, why, and where.   Usually, its all online.  Follow those who are successful.   Go back a couple years if you can, because so many players in this game are only "One-Year Wonders".

Online Sales:  Most of FL (RealForeclose) are online, but I recommend going to the ones you can in person.  A lot of competition on most online sites.
Google search: STATE COUNTY TAX SALE AUCTION YEAR  go to county website to find a link.

Good luck!!!

Joe

 

Looking for a cheap online source for title information on current owners, specifically mortgage information.  Considering Data Tree but records are spotty depending on which state you are in.

Any help much appreciated!

Joe

@Mike Hartzog @Sean Dezoysa Id be happy take a look at any of your NPN in the Indianapolis or Anderson,IN area

There a number of ways to sell tax deeds.  It really depends on the market, the type of property and the price.

Typically we FSBO for a few months before taking on a Realtor. I would say 60-70% every year we are able to sell ourselves. We also direct mail all neighbors first before putting up a sign in the yard, especially if it is land.

If the price offered is less than $10,000 we most likely will not move forward with a quiet title.  We have sold property contingent on completion of quiet title, initiated by seller and once by buyer.  
Over $10,000 the buyer will want more assurances and quiet title is best to start.

Selling land contract is also very popular.  I don't mind the monthly payments and we charge low interest.  Also in my state you can get title certification after one year of holding tax deed, which is cheaper than an outright quiet title.  So, by doing land contract, you are holding the deed for 12 months and then the buyer can purchase that certification at the end of the contract.   We have even purchased it for one of our buyers at the end of the contract as a thank you for all the timely payments/great communication. 

I also suggest using Craigslist to post your properties and any other free means first.  I avoid wholesalers as much as possible, because they tie up the property and time.

If you deal with a lot of inventory, like us, I recommend making a simple website to refer potential buyers.  They may see something else they like more.

Good luck

Joe

 I have personally attended hundreds of tax sales, owned hundreds of tax liens, and foreclosed on dozens of homes.  Let me share with you some of my experience. 

First of all, for abandoned houses, it would be impossible to count the number of times a county official commended or thanked me for taking over a property.  When you walk into a rural county office and the county auditor, treasurer, etc. know you and remember you on a first name basis, it's priceless.  They are eager to see our before and after renovation pictures.  
Likewise it would be impossible to recall every time a happy neighbor approached our contractors fixing up a property, cutting the grass, etc. and welcomed us to the neighborhood.  We take an active role in each community we acquire property.  

As for occupied houses, let me first say that we have never evicted someone from their house (yet).  We have a wide list of options to get people to stay in the property or to get them to leave.  Most of the time, it makes sense for us to keep them in the property.  If we really need them to leave to renovate the property, we offer money for moving expenses, or can put them temporarily in one of our other houses.   Because we get these properties free and clear, we can offer rents at below-market rates.    When a property owner leaves the property, they don't always leave empty handed, they collect the surplus bid.  
Remember that while holding these liens, I perform intense research on each property.  Each property has a story, told most often in the title work, and I make sure I know the story well before I ever approach the people that live there.  

I am a Minarchist.   As much as I despise the federal government and most taxes, I support the idea of a strong local government and property taxes.  I believe a county government will know what is best for its residents rather than some politicians a thousand miles away.  It is not fair for some residents to pay for county services at the expense of "some freeloader" who inherited a property.  If the person that built that property paid property taxes, why should that not continue.  Property taxes are the same as paying insurance.  Property taxes give you someone to call when there is a crime, or a fire, or a civil dispute.  The truth is if these were services left to the private sector, you would still have to pay for them!

A tax sale investor is a vital link in the system of property taxes.  We really play a duel role that the county is unable to perform.  We provide funds to the county to continue public services while at the same time deal with difficult property situations.

~Joe

Advice #1
If you want to be really successful in Real Estate, be prepared for all kinds of "arduous tasks" especially "going through hundreds of filtered properties at each county"

Advice #2
Don't expect the county to do anything properly.  Investigate it yourself even if that means driving down to the county building.

HARD WORK goes a long way in any business.

You are asking about a scam tax lien "trainings" and talking about a lien you already purchased in the same post? 
*Hand to forehead*

My suggestion is stop going to retail trainings & seminars and second, QUIT BUYING LIENS.  Instead I suggest: Attend 10 (TEN) Auctions in-person without investing any money.  Network with the other bidders.  Learn the system on a local level.  The in-person part is essential.  So is the local level part.  And the no money part.  

Be less willing to part with your money so easily.  Be more willing to put in some hard work.  On your eleventh auction you will find an opportunity and make a true investment.  Not promising you that, but at least you won't be having these types of questions.

Good luck

<<<<For a State with no rules on contacting the owner>>>>

If I were interested in getting the property, I would not be loitering around the property for any reason.  If I go buy a lien property, its quick.  If contact was made with the people living there (and it has happened to me) I just ask if they own or are renting the property.  Depending on their response to that question, I reveal who I am or I pretend I'm just scouting the neighborhood for deals.  If they are renting I say who I am.   If they are the owners I play dumb.  Plenty of explanation behind that if you need me to elaborate lmk.

> By tape value do you mean net assessed value? Because NAV could be well over Market Value, especially (and I mean ESPECIALLY) in the armpit of the state which is Gary, Indiana. I would cut that in half

>Mostly likely vacant for years and anything vacant for years will need a rehab

> The delinquent taxes. When taxes appear too high there are usually three ( or a combination of the three) situations:
1) The property is assessed too high and/or property class is wrong. In this case yes the NAV is probably to high but certainly not off enough to warrant those types of taxes.
2) Special Assessments. City/County liens like weed liens are added to the tax bill. IMO this is also not a major factor seen here.
3) Most likely, as what happens in many counties, the property has been through a few or several tax sales, the amount increasing each time it is not sold. It probably has passed through some Commissioners sales as well (where is was offered for much much less!).

I can tell you by the little you have told us about the property this is seriously not a good buy. I have seen so many people get sucked into Gary, IN never to return. Not to say it couldn't turn around one day, but who wants to wait?

I suggest finding the property at the next Commissioners sale where the opening bid could be $100 and the remainder forgiven when you are the winning bidder. Mind you I think the property is beyond repair hence nobody bid on it.

And please please go by the property before bidding/buying this property!!!!!

I need to go wash my hands after thinking about Gary, Indiana.

Best of luck,
Joe

 I have never needed to make a claim but I can show plenty of documentation.  Its public information if you know where/how to look, but I prefer not to post it on a public thread and put them in the spotlight.  Contact me privately and I can walk you through everything.  
As for making a claim, I am not sure how they prove it wasn't already broken.  If they were able to walk inside the house the moment they got the deed and then time passes before an eviction is filed and they decided to destroy things on their exit, obviously you would know.  But if people were living in a house one day and you walk into the house the next and all toilets are ripped out you can assume they did it on departure.