Re-Engaging: Looking for Resources on Tax Liens and Deeds in Texas

[Chris Melton]

Hi everyone,

I’ve been a member here since 2016, but I’ve been inactive for a while. Over the past few months, I’ve developed a serious interest in tax lien and tax deed investing, particularly in Texas, where I live. I’ve done some initial research, but I’ve realized there’s a lot of conflicting advice online.

As someone new to tax liens and deeds, I’m looking for reliable resources to help me get started on the right track. Specifically:

1. Books or Courses: Are there any beginner-friendly books, guides, or courses you’d recommend?
2. Websites or Tools: What are the best resources for researching properties or understanding Texas-specific rules for tax deeds?
3. Advice for Beginners: If you were starting over, what’s one thing you wish you’d known when you got into tax lien or deed investing?

I’d really appreciate any guidance, tips, or stories from your experiences. I know this forum is a goldmine of information, and I’m looking forward to learning from everyone here.

Thanks so much for your help!

[Bruce Lynn]

For practical purposes no liens in Texas, only deeds for regular folks.

Before you get to far:

#1.  You need to be off the first the first Tuesday of the month.  There are a few sales online, but for the most part in person sales.

#2.  You need cash, lots of cash.  Realistically no loans.  You need to be able to tie up that cash for two years, as that will be when you realistically can resale the property.  Forget the six month idea, and virtually no one redeems, so also forget the 25-50% numbers.  Every sale is different, but typically you pay at the sale.  Some maybe give you a couple of hours to go get a cashiers check.  Some places move you to the front of the room and run your cash thru a bill counter a minute after the sale.  Fun in those places to see $100-$200K or more come out of bras, boots, and briefcases and get counted in front of everyone in the room.

#3 Go see every property you plan to bid on without exception.  People think they have shortcuts.  There are no shortcuts. DO NOT depend on google street or sat view.  GO see the property.  You will find that street view is often wrong.  Like you see a nice beautiful house online, and you get there and there is $100,000 haul off fee for the junk there, or the house is gone, or something else you didn't expect.

#4.  Resources seem tough...classes and books.  Best advice read the property code section about tax sales.  Read it 2-3 times and maybe read again 1x-2x a year.  At least you will learn the law as written, even if "local" rules supersede the law....and it often does, and even that changes from time to time or even at the auction.  I've seen the attorney running the sale and the sheriff have words about payment, times, and cash-check-cashier check right at the auction.  So always a bit of a trapshoot.

#5.  Get a list for the next sale from your county.  Research the properties.  Know the value.  Maybe just start with tax value and zillow value.  Go drive the property.  Come up with a number you would be comfortable with to make money.  Include your holding costs, taxes for 2 years, insurance for 2 years, any basic repairs needed like roof repair, window repair, lawn care, etc.  Go to watch not to bid.   See what properties sell for and the procedures at your local sale.  Is the auction on the steps, in a tent, down the street at the annex, inside the courtroom?   See if what you were willing to pay, exceeds what others are willing to pay?  I say go 2-3-4 times to watch.  You'll learn a lot.  Talk to people at the sale as much as possible.  Ask questions.  Take the expert to lunch.  Then maybe month 4 or 5 if your county is month, go to bid if you are still interested. Some counties only have 1x a year, so this is a long game, not always quick profits.  Actually rarely quick profits.

#6  KNOW what your are buying and what your EXIT strategy is.  Easy to buy, not as easy to sell often.  If you don't know, don't buy.  There is plenty of that at the sales.  For example last month saw nice 1/2 acre rural lot.  No water, power, sewer cause it is in the coUNtry.  Country requires min 1 acre for septic and another acre for a well.  Electric drop is probably $20,000.  So whoever bought that lot has pretty limited options for most buyers.  Can't build today or maybe ever or put mobile on it, unless you want to live without any utilities.  Maybe you could put a couple of goats on it and haul in water for them.  What if the county requires 150ft of road frontage (to prevent or limit mobiles).  What if in town there are minimum lot size requirements and the lot selling is smaller than that.  You need to know that stuff or how to resolve it.  If not you just bought a community vegetable garden.   Saw a small parcel with billboard one time.  I'm thinking that probably provides nice monthly income, but lease was 1x payment, not monthly from what I found out, but tough to get the actual lease on that before you buy?  That leaves you paying taxes and insurance with no income for another X years.   

What county are you in?