Tax Lien Certificate Investing in Indiana is NOT EASY

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Tax Lien Certificate Investing in Indiana is NOT EASY

Gerald Levin
Flipper · Indianapolis, IN · Member since 2011 · 20 posts · 1 vote

Just finished my 4th tax lien sale here in Indiana over the last couple mo. At the last sale in Madison County (Anderson, IN...depressed area), nice homes went for 50-100% of assessed values with back taxes owed just a few thousand dollars. No way am I paying $80k for $120k in a depressed area where you literally can't go one block without finding an "open house" (home with a kicked in door left wide open). Marion County (Indianapolis) was worse. A home in a nice area NE Indy that assessed at $415k went for $390K!!! Say what??? Yeah, many are after that 10/15% interest but what if the house burns down during the one year of redemption and the homeowner has no insurance? Or leaves it a total wreck? I have 30 years of real estate investing, own over 50 commercial properties and just trying to buy a certificate on a nice property that is appx 25% or less of the assessed value and not having any luck. Had a huge bankroll and only spent $2700 on a piece of farmland. That's it. Anyone having any luck in Indiana???? About to dive into the upcoming GA/TX tax sales. Any opinions/advice greatly appreciated.

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Melody Barrows
Real Estate Investor · Peru, IN · Member since 2012 · 4 posts · 6 votes
10y

Gerald, 

I do not know if you are still interested in speaking with serious Indiana tax sale buyers, but if you are I am that. I have purchased over 3 dozen properties at tax sale in Indiana. I followed through to deeds. Some of the properties are my rentals, some are rent to owns, and some I have flipped to market. I currently own 41 residential properties and 2 commercial properties. It has become a wonderful investment for me. 

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  • Kyle Meyers
    Residential Landlord · Indianapolis, IN · Member since 2010 · 592 posts · 138 votes
    14y

    I'm investing in Indiana tax sales. I was at the Marion county sale, but bought all I wanted/could afford before the lunch break on the first day, so I missed the one you referred to (456 Spring Mill Ln). I actually have a condo in the area of that property and the bid seems very high.

    I had success at the Henry county sale in 2010, bought 3 liens, none redeemed, I'm getting 2 deeds, the third property burned down.

    There were very few higher value properties in the Marion county sale this year, but I was targeting some cheaper ones.

    0Reply
  • Gerald Levin
    OP
    Flipper · Indianapolis, IN · Member since 2011 · 20 posts · 1 vote
    14y

    Kyle,

    The property on Spring Mill was the property I was referring to. Nuts! My brother lives walking distance from you. We want to buy you lunch. Can you contact me?
    I'm new here so not sure how this works but email me at galevin at hotmail dot com. Any other serious Indiana tax sale attendees, I'd love to meet.

    0Reply
  • Melody Barrows
    Real Estate Investor · Peru, IN · Member since 2012 · 4 posts · 6 votes
    10y

    Gerald, 

    I do not know if you are still interested in speaking with serious Indiana tax sale buyers, but if you are I am that. I have purchased over 3 dozen properties at tax sale in Indiana. I followed through to deeds. Some of the properties are my rentals, some are rent to owns, and some I have flipped to market. I currently own 41 residential properties and 2 commercial properties. It has become a wonderful investment for me. 

    5Reply
  • Greg Carrier
    Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    10y

    I go to about five county sales each fall and a few each spring. (I also do some in Michigan). I find that with good properties. they normally go from 40 to 50% of my estimate of ARV. I do get some really cheap (less than 10 K for most but look at lots and wait for the ones with little interest in areas and in conditions I can live with. And auctions make for some strange bidding. I see houses in the fall sales that end up going higher than the fall min bid when they come up in the Srping. All in all though we buy every year. In the last round we bought 17 and have the St. Joe county auction going on now that we hope to pick up a few more. If you ever want to discuss, just let me know via a message. Keep going. This is for bargain hunters more than people looking for one particular house, at least that is the way we do it.

    1Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    10y

    @Gerald Levin this is not unique to Indiana. In Maryland people often bid more that the property is worth if they have to foreclose. 

    We see a regular cycle of new investors coming in and bidding too high. They think they are doing great as the interest checks roll in. Then in a couple of years when they have to foreclose on the ones that  don't redeem, they realize they can't recoup their money.

    Big money is not always smart money

    1Reply
  • Beverly Fast Sinclair
    Investor · Carmel, IN · Member since 2015 · 60 posts · 13 votes
    10y

    @Gerald Levin, what you see is often common at tax sales in Marion County. Even the REO's and short sales are commanding high prices. Right now, it is a seller's market. My listings that are in good shape are selling in days. The last two buyers I wrote offers for were both imultiple offer situations.  I've been a Realtor since 1997, and I've never seen a market like this.  I have heard predictions that the market will shift next year, and slowly become a more balanced or buyer friendly market.  It's just not that right now.  If someone is having good luck in the past few months, I'd love to hear what they are doing. 

    0Reply
  • Ju Padilla
    Schererville, IN · Member since 2016 · 4 posts · 1 vote
    9y

    Melody,

    Your comment caught my attention, I'd like to buy tax liens and deeds but I don't know where to start I've seen a lot of infomercials on line and TV but I' prefer to learn from someone real are, you that person?  

    0Reply
  • Tony Willits
    New Palestine, IN · Member since 2016 · 2 posts · 0 votes
    9y

    Ju,

    I'm with you. I've been doing quite a bit of research, but would also really like to learn the ins and outs of tax lien and deed sales without being taken for a ride.

    0Reply
  • John Doolin
    Farmland, IN · Member since 2017 · 2 posts · 0 votes
    9y
    What do i do with people living in a tax sale house I just bought in Farmland Indiana?
    0Reply
  • Andy Rumple
    Wholesaler and Real Estate Broker · Indianapolis, IN · Member since 2009 · 438 posts · 293 votes
    9y

    Nothing.

    0Reply
  • Kay Albright
    Washington, DC · Member since 2017 · 1 post · 0 votes
    9y

    Nothing? 

    0Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    9y

    AS I always say, Tax Sales are the most hazardous way to buy real estate.

    1.  No home inspection

    2.  No title insurance

    3.  Often can't see inside unless "open house"

    4.  Inside condition can be much worse than exterior condition.

    I see at almost every sale people paying retail prices, and people buying property sight unseen.  They look at some on line pictures from 3 years ago and decide to bid.

    At one tax sale bidders were stumbling all over each other to buy a house that had burnt to the ground the weekend before but they didn't know it.

    At one sale somebody bought an Army bombing range, lots of luck with that one.

    At one sale a row house's 3 story back wall was in the back yard, people were competing to bid on it obviously never having seen the back of the house.

    At one sale of a nice suburban house, the owner occupant had removed all the electric wiring cutting holes in walls and ceiling everywhere in the house, because he felt electricity was altering his brain.

    At one sale roof leaked for maybe as much as 7 years, but the flat roof could not be seen from the ground, hardwood floors were heaved as much as 1 foot and mushrooms were growing in the all to wall carpet.  Could see any of this until after the sale.

    Freeze damage, stolen copper pipes and wires, stolen aluminum, etc. all are signs of a tax sale property.

    But one of the worst tax sale properties are those that don't exist,

    5Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    9y

    @Ju Padilla and @Tony Willits the key things to know about tax sale are:

    1. Know what you are bidding on
    2. Know what it is worth, (Use a  conservative estimate.)
    3. Know the rules and how they affect your end price or return.

    There are many threads here on BP about tax liens. Some get into very specific details. A good resource for tax lien investing is often your county website. It can be difficult to find but most counties will have something about there tax sales posted.

    1Reply
  • Greg Carrier
    Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    9y

    @John Doolin.  Yes you do nothing until the redemption period is over.  Is it over on the one you bought?

    1Reply
  • John Doolin
    Farmland, IN · Member since 2017 · 2 posts · 0 votes
    9y

    Redemption period is over. I have the deed. It's just occupied.

    0Reply
  • Dennis Weber
    Real Estate Investor · Indianapolis, IN · Member since 2014 · 316 posts · 165 votes
    9y

    @John Doolin  knock on the door and talk to them. Most of the time they're just staying until someone tells them to leave. Offer them $50--$100 for the keys. Be reasonable, though. Give them a couple weeks at least to move out. Thats always worked for me. Check the county website or Beacon to see what you have to do. I think I read where you don't have to file ejectment or eviction. Or maybe I dreamed that. 

    0Reply
  • Gregory Hess
    Elizabeth, IN · Member since 2017 · 1 post · 1 vote
    9y

    I have a stupid questions, I have bought quite a few in the past and they have all redeemed, but I have 1 I forgot about and it was bought in 2013, is there anything I can do with it now that it is a little over 3 years old which is 2 years past the redemption period? Any help is greatly appreciated.

    1Reply
  • Khalif Muhammad
    Gary, IN · Member since 2017 · 2 posts · 0 votes
    9y
    Originally posted by @Greg Carrier:

    I go to about five county sales each fall and a few each spring. (I also do some in Michigan). I find that with good properties. they normally go from 40 to 50% of my estimate of ARV. I do get some really cheap (less than 10 K for most but look at lots and wait for the ones with little interest in areas and in conditions I can live with. And auctions make for some strange bidding. I see houses in the fall sales that end up going higher than the fall min bid when they come up in the Srping. All in all though we buy every year. In the last round we bought 17 and have the St. Joe county auction going on now that we hope to pick up a few more. If you ever want to discuss, just let me know via a message. Keep going. This is for bargain hunters more than people looking for one particular house, at least that is the way we do it.

     You seen very experienced in sales in the state of IN, do you when the next sales are for Lake County and have any information regarding Gary IN seems there are a lot of properties in this area

    0Reply
  • Khalif Muhammad
    Gary, IN · Member since 2017 · 2 posts · 0 votes
    9y

    Have a group that is trying to help people in this area become home owners with the hope that they will be interested in improving the area... the Tax Sale is a way for them to aquire property and slowly invest ... do u have advise and when is the next sale

    0Reply
  • Helen Torres
    Gary, IN · Member since 2017 · 1 post · 0 votes
    9y

    I also go to Lake County Tax sale every year and am from Gary

    0Reply
  • Greg Carrier
    Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    9y

    @Helen Torres is probably your best bet Khalif.  I primarily do St. Joe, LaPorte, Elkhart, Marshall and Stark and a few in Michigan as they are all near me.  If you have any questions though I am happy to throw my two cents in.  Good Luck

    0Reply
  • Kin Lay
    San Leandro, CA · Member since 2017 · 55 posts · 5 votes
    9y

    This is not tax lien sale right? It sounds to me like tax deed sale.

    0Reply
  • Josh Carr
    Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    9y

    @Kay Albright @Ju Padilla @Kyle Meyers I thought I would post some info on tax sales in Indiana that may be very helpful.  Many of the tax lien sales are done online with a website sri-taxsales.com and then to Zeus auctions.  Here is a booklet that they publish for all that are interested.

    https://s3.amazonaws.com/wsd-zeus/auctions/Tax+Han...

    0Reply
  • Josh Carr
    Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    9y

    Here is the certificate sale buyer handout since they have two types of sales.  They really have three but they have their initial tax lien sale and then their commissioner sales and then their deed sales.

    https://s3.amazonaws.com/wsd-zeus/auctions/Certifi...

    0Reply
  • Josh Carr
    Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    9y

    And...here is the deed buyer handout for Indiana. 

    http://www.sriservices.com/wp-content/uploads/2015...

    0Reply
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