Back Tax Property Purchaes?

[Josh Calcanis]

BP,

I recently grabbed coffee with a local REI out here in Orlando and he quickly mentioned the strategy of 'deed grabbing.' He specializes in commercial development, but had dabbled in the process of buying properties by purchasing the title through tax foreclosure. An interesting concept that we didn't get to discuss to the length I'd hope to. From my understanding through googling and meeting with him, is that the title (loan and all) can be placed in your name for the simple fee of whatever is owed on taxes for the property.

Who here has experience with this type of deal? Any advice on approaching this kind of deal and seeing it through to closing?

What are the pros and cons vs a bank-owned foreclosure other than the small amount of capital?

[Bob Okenwa]

@Josh Calcanis

I don't have an answer for you but I too am interested in finding the details behind this scenario. Hopefully someone well-versed on the subject can chime in with their opinion and knowledge on the subject. The only thing I know about the subject is that the people with back property taxes have a certain amount of time to bring them current (I think 2 or 3 years out here but don't hold me to that). Also, you'd have to make sure the title is clear and you would be buying in the 1st position.

[Josh Calcanis]

@Bob Okenwa That was one thing he mentioned. There is a chance you could be 'under contract' like a foreclosure where the current owner would have an amount of time to repay the taxes.... What would be the risk there and could you lose any of your money if they were to pay that back?

[Bob Okenwa]

Out here, it is my understanding that if owners redeem their property by paying the overdue taxes within the time allowed under state law, you’ll get your investment capital back, plus the amount of interest allowed in your state. I think it's 6% in AZ but I can't find the info to back that up at the moment. It's somewhere on the county assessor's website or something.

[Account Closed]

There is a great pod cast here on BP covering most of your questions .. but , if it were easy and without risks then everyone would be doing it .. you can win big but in my experiance the bigger the win the bigger the risk .. I wish you all the very best ..

God Speed, 

Michael Short 

[James Makers]

There are some intricate details that any investor needs to know about tax deeds. Due diligence becomes 10X when your buying sight unseen and a lot of local municipalities that may still have liens. Cash only sales and the owner can only redeem up to when you pay the full amount. After you pay there is no redemption in FL. Other states are different as owners can redeem up to two years after you've purchased I've purchased through the tax sale and can let you know what I know. PM me

[Josh Calcanis]

Thank you @James Makers I will reach out...

@Account Closed Do you remember which podcast that was?

[Account Closed]

@Josh Calcanis no , im sorry I dont .. I cant believe somebody has not chimed in yet and post it or the number .. everyone must be busy .. if I come across it Ill try to let you know ..  

good luck as always ..

God Speed, 

Michael