Refinancing Tax Deed Purchases

[Thor Fink]

I am looking for potential ways I can pull some or all of my cash back out of my tax sale purchases.

Does anybody know if this is possible and what options may be available to us tax deed investors who have to use all cash?

[Effram Barrett]

@Thor Fink

You’re missing what Bruce is saying about the redeemable period.if you buy a tax delinquent house in TX, the original owner has up to 2 years to redeem it for the price you paid the taxes for.

For example let's say you purchase a property for 35K at the auction and 2 months later you put in another 60K into it for upgrades. The ARV for the home is now 225K. The original owner could go and pay the 35K tax lien that you purchased the home for and redeem it. You would lose the 60K you put into it and any other interest. You would get your 35K back plus 25% for the 1st yr and 50% for 2nd yr but that's about it. Basically what Bruce was saying is wait at least 2 yrs before you put any serious money into it so they can't redeem the property.