Crazy Bidders at Tax Deed Auction!!!

[Thomas B.]

I've just finished my 1st tax deed auction in more than a few years. The last one I attended was actually "on" the local Courthouse Steps with a few dozen spectators, maybe 5 actual bidders, and quite a few properties getting no bids at all. 

I am in much better financial place now and ready to transition from spectator to participant; however, the whole process for our county has gone on-line. No problem, just a few more hoops to jump through... or so I thought. 

I should have known better. Every Tom, Dick, and Harry, would be Real Estate Investor from around the country (maybe world-wide) is able to bid on-line, driving up the bidding to astronomical heights! Most of the properties were paid off before hand (probably making under the table offers to the owner) but the others I was bidding on got ran all the way up to full market value. These "out-of-towners" are screwing up the market! 

I live in Corpus Christi, TX... it's no Austin, Houston, or Dallas. Its much more blue collar, industrial, small to mid-sized city. I witnessed the same speculation fueled realestate insanity before the crash of '08 when I lived in Miami, FL. The rural areas for hundreds of miles around were inflated beyond reason by out-of-towners who were largely ignorant of the local economy. "Carpet-Baggers" is the historicaly accurate term for these folk. 

OK... ranting aside; I know this is probably happening all over. Is the Tax Deed Auction angle played out? 

Is there certain paperwork, forms, or format I should submit to the owner (or heirs if deceased) for an offer to clear their property taxes before the auction, in exchange for the deed? Do I need to consult a RE Lawyer to ensure it is all legal?

[Arnie Abramson]

Thomas, the Texas tax sales have been like that for a while now.  There are a lot of reasons but the counties that are online - you hit the nail on the head-investors from everywhere.  We have been concentrating on the counties not online and the deals are on the properties in more rural areas, which is where there is tremendous growth as a result of the pandemic among other reasons.  We had a great sale yesterday and won 25% of the properties we bid on for our investors.  

Our philosophy in this market for Texas tax sales is the response Wee Willie Keeler said when he was questioned about how a 5 foot 4 inch man could be the best hitter in major league baseball in the 1890's.  His response is on the plaque in Cooperstown NY:

"i hit 'em where they ain't"   Let me know if I can help.