Buying post tax deed sale

[Roberto Rojas]

So I haven't heard about this before. In Texas where I live there's a 2 year redemption period for tax deed sales. Can I potentially reach out to people who have been kicked out by the tax deed holder and offer to buy their house for amount owed to the tax deed holder plus xxx amount to go to the owners. That way they'll walk away with money instead of $0.

[Bruce Lynn]

@Roberto Rojas   New law passed a year or two ago that prohibits non-interested parties from buying the redemption rights in Texas.  I would think this would be a tough endeavor anyway, but that law probably makes it even tougher.   I'm sure the savvy person could figure out a way.  Perhaps you could give them a loan to redeem and a contract to sell at the same time.  You go to the courthouse with them and pay off the tax deed +25 or 50% of the sales price, so you know the loan proceeds go to pay off the tax obligation.  Typically they've had all kinds of options thrown at them already, by the tax collector, by the attorneys representing the tax collector, by payday type lenders, maybe by investors prior to the sale.  So you're maybe #10 or #20 of the people who have approached them with some kind of option.   Maybe reality has set in, maybe you have better sales skills.

There are lots of other tricks involved as well.  #1 would be finding out what was paid at the sale, unless you were there.  I don't see lists being published in most places to show you what the sales price was at the sale.  You could of course look it up or pay someone to look it up.   You'd have to find the right homes in the right target areas at the right price points for you to make money.  Then skip trace the previous owners if there are any, then convince them to do your deal.

Also just because the home sold at the tax sale does not mean the previous owner got kicked out.  Could have been a rental, could have been vacant, new owner may not kick them out.

It would take a fair amount of effort.  I think you could potentially have better, more likely and easier ways to make money.  Try it out with one and see how it works for you.   Go to your next sale, take note of the sales prices, think of what you would need to pay to get it back and if that makes sense for you and if the margins are there.  Then go find the previous owner and make them offer if it makes sense.   It always starts with an idea and one deal.