All Forum Posts by: Calvin N.

I attended the monthly tax sale in my county this morning. There were a total of 8 properties that went to auction. Here are the results: vacant lot, taxes owed $254.82, sold for $375; vacant lot, taxes owed $286.45, sold for $425; vacant lot, taxes owed $284.34, sold for $284.34; one acre vacant lot, taxes owed $282.74, sold for $800; house and lot, taxes owed $267.27, sold for $6,000; vacant lot, taxes owed $313.03, sold for $1450; house and lot, taxes owed $376.87, sold for $5510. I bid on the two with the houses, but my maximum was $5000. Maybe next month. I have attended several but this had more people (18) bidding than any of the others. I know that is not many people, but this is a small county and usually not much competition. It is obvious that a lot of people are learning about the auctions and the possible deals. Anyone have any success stories from the tax sales?

I wouldn't get hung up on the property being sold as an REO, foreclosure, or FSBO. That part doesn't matter. What matters is you buy it at the right price. If you use the 70% to ARV goal you should be in good shape. Of course, in your area of the country 70% ARV may not be possible so find what will work for you. Having someone that is willing to back you with the money to do this is great. Don't get in a hurry and you will find the right deal. Best of luck to you and keep us informed on your progress.

Noobdog, I am doing ok with both properties. One is a SFH and the other is an older home that is set up as a duplex. I have made many of the mistakes that I read others made: took in bad tenants, allowed them to stay longer than I should when the rent was late, let them take on some "minor rehab" projects in the house, etc. Fortunately, I have learned a lot and am a better landlord now. My wife and I are serching for the right property to buy, fix and sell but have not found the right one yet. We have made some offers but no one was "motivated" enough yet. We will find one in time.

Georgia Girl, What exactly are you wanting to do to get started? Let me know!

Did you have a contract on the property? If not, anyone could have made an offer and the buyer could have accepted it. If the property was listed on MLS or anywhere else lots of potential buyers may have been interested in it. Now, the fact that he is not returning your calls is very bad business. I would keep trying to contact him and see what happened. He can't stop someone else from purchasing it. As a buyer's agent he works to get you the best deal but can't stop someone else from buying it. Let us know what you find out and best of luck to you.

Hey Georgia Girl, I have purchased some rental properties and one rehab project but have not done a wholesale deal yet. I am west of Atlanta. Like others said there is a lot of great, free information available on this website and others. Take it all in and go for it. I had someone tell me to just go ahead and make an offer and ended up purchasing two rental properties in two months.

Merry Christmas!

I will be attending another tax sale/auction next month and started checking out the properties listed for sale in my county. There are 9 properties scheduled. Of course, several will pay before then. Taxes on these properties range from $289.44 up to $1257.38. Not a lot of money but a change to make 20% here in Georgia (a hybrid/deed state with a 12 month right of redemption period) on the money.

What steps do others take in preparing to bid on the tax lien/deed sales? I have personally driven by all the properties, checked the tax records to see who paid the bill in past years and also checked the county records to see what the property sold for and when. What else should I consider before bidding?

The county tax commissioner's website claims all liens are erased once foreclosure is completed; this includes mortgages, liens, and federal tax liens. The foreclosure only happens after the 12 month right of redemption period ends. What else should I look for? Thanks for your replies.

Troup County holds the auction each month, first Tuesday of the month. There are usually 10-15 each month that are set for auction but typically half are paid up before the auction date. I have the list for January's auction and will start riding around to check out the properties next week. I have seen many that are vacant lots in bad areas that I would not even want to buy at the amount owed on the taxes. However, there are usually a few that are worth bidding on. I will keep you posted.

I am in Troup county and have attended several of the auctions here. I am also checking into the auctions in Thomas County. All of their information is easily available on the web. Troup County's tax commissioner's website was updated recently and provides some good information. Where are you in GA?

I have attended several sales in my county and bid on a few properties but have not won one yet. I will be back on Jan 2 to try again. Most of the auctions I attended the bidding seldom went for more than a few hundred dollars more that what was owed on the taxes. In only one case did I see the bidding to over 10K and it went to 35K for a house that was worth 75K.

For those of you that have the experience with the bidding process please help with this example: the taxes owed are $700 and the value of the house is $100,000, remaining loan amount is $90,000. The bidding starts at $700 and goes from there. Why wouldn't someone that wants to make 20% on their money bid $50,000? The homeowner now owes a mortgage of 90K plus a tax bill of 50K (total of 140K) for a house that is only worth 100K. Most homeowners would not or could not pay and would be forced to let the house go. If the mortage company decides to pay it then you get your 20% of the 50K, a $10,000 payday. If they don't pay it and the homeowner lets it go and you foreclose on it after the 12 month redemption period you get a house for 50K that is worth 100K.

It seems like a dirty way to take a house from someone but if they are not paying the taxes they probably not paying the mortgage either and may be losing it either way. Just looking for your thoughts on this. Thanks!