tax sales in Dallas area or Texas
Member since 2023 · 4 posts · 1 vote
Is there anyone In the Dallas area that is a mentor or has classes on tax sales and how to wholesale them I'm just getting started into real estate and this is probably one of the cheapest ways to get in but more complicated any advice would be greatly appreciated
Go to the Dallas county sale with 300-400 other people. Take cash. They sell a property immediately after you move to the front of the courtroom with a deputy and they count your cash. You will be amazed to see 100K-200K-300K pulled from boots, bras, and briefcases to pay for purchases. Of course not every sale is 100K, but some are.
Also understand you will like need to tie up that cash for 2 years and pay holding costs like property taxes and insurance before you can resell it, due to both title issues and sale challenges. (tough to get title insurance before 2 years)
Not sure how you 'wholesale" tax deed lots....you actually have to purchase the lot, before you can resell it. I would also challenge you that they are not cheap typcially. I would guess most buildable lots in Dallas county at the tax sale are easily 10,000 to $20,000 and not in great locations.
Make sure 100% you know what you are buying.....not in the flood zone, has utilities, zoning, no city liens, and anything else you deem neccesary in your due dilligence. I also say make sure you see every lot you buy before you buy it. Google sat view and street view are not your friends in this regard. You often see nice lot on the sat view only to get there and find there is a pile of junk that will cost you $20,000 to remove...so you want to make sure that junk pile is not what you are buying....or the lot shows nice and neat on sat view and you get there and find every trucker in the neighborhood is changing their oil and dumping the used on that lot...so now you are responsible if you buy for environmental cleanup.
Lots of disasters out there....lots in old mobile home parks that have no sewer, but now due to new laws arent big enough to put in septic...so really unusuable unless you can buy enough to get 1 acre...so maybe 10-20 of those lots. There are lots that people subdivided illegally and now don't have enough road frontage to get replated. Old lots that may not be big enough for new city requires reguarding structure size or lot size.
Not to discourage you, but to give you food for thought that it is not an easy business.
Good luck
You need a bunch of cash or access to a bunch of cash to buy tax liens.
I was thinking of buying tax deeds and not liens and was looking at land too which isn't to much in my county
Go to the Dallas county sale with 300-400 other people. Take cash. They sell a property immediately after you move to the front of the courtroom with a deputy and they count your cash. You will be amazed to see 100K-200K-300K pulled from boots, bras, and briefcases to pay for purchases. Of course not every sale is 100K, but some are.
Also understand you will like need to tie up that cash for 2 years and pay holding costs like property taxes and insurance before you can resell it, due to both title issues and sale challenges. (tough to get title insurance before 2 years)
Not sure how you 'wholesale" tax deed lots....you actually have to purchase the lot, before you can resell it. I would also challenge you that they are not cheap typcially. I would guess most buildable lots in Dallas county at the tax sale are easily 10,000 to $20,000 and not in great locations.
Make sure 100% you know what you are buying.....not in the flood zone, has utilities, zoning, no city liens, and anything else you deem neccesary in your due dilligence. I also say make sure you see every lot you buy before you buy it. Google sat view and street view are not your friends in this regard. You often see nice lot on the sat view only to get there and find there is a pile of junk that will cost you $20,000 to remove...so you want to make sure that junk pile is not what you are buying....or the lot shows nice and neat on sat view and you get there and find every trucker in the neighborhood is changing their oil and dumping the used on that lot...so now you are responsible if you buy for environmental cleanup.
Lots of disasters out there....lots in old mobile home parks that have no sewer, but now due to new laws arent big enough to put in septic...so really unusuable unless you can buy enough to get 1 acre...so maybe 10-20 of those lots. There are lots that people subdivided illegally and now don't have enough road frontage to get replated. Old lots that may not be big enough for new city requires reguarding structure size or lot size.
Not to discourage you, but to give you food for thought that it is not an easy business.
Good luck
The wholesaling process is the same as any other property. What you need to be aware of is the redemption period and your local county rules.
So wholesaling wouldn't be worth it since I would have to tie my money for 2 years on that property and instead I should look for residential properties I could possibly fix up and rent? or would that have more issues with title?
Is there anyone In the Dallas area that is a mentor or has classes on tax sales and how to wholesale them I'm just getting started into real estate and this is probably one of the cheapest ways to get in but more complicated any advice would be greatly appreciated
So wholesaling wouldn't be worth it since I would have to tie my money for 2 years on that property and instead I should look for residential properties I could possibly fix up and rent? or would that have more issues with title?
Oh I thought when you went to a tax sale and won the bid you would get full ownership and the previous owner wouldn't be able to redeem thought that only happened with tax certificates. And even if they redeemed wouldn't they pay interest on it that i would be profiting from?
Oh I thought when you went to a tax sale and won the bid you would get full ownership and the previous owner wouldn't be able to redeem thought that only happened with tax certificates. And even if they redeemed wouldn't they pay interest on it that i would be profiting from?
In TX there are redemption windows before obtaining full ownership. See https://statutes.capitol.texas... (statutes.capitol.texas.gov/Docs/TX/htm/TX.34.htm#34.21 ) and search for "may redeem" to get the gist; but a mentor, or edu, is a good idea to avoid the pits.
Oh I thought when you went to a tax sale and won the bid you would get full ownership and the previous owner wouldn't be able to redeem thought that only happened with tax certificates. And even if they redeemed wouldn't they pay interest on it that i would be profiting from?
In Texas you do get the deed, but there is a 6month-2year right of redemption where the previous owner can redeem and buy the property back. In reality it is probably a 2 year right if they really want to fight it. Good idea to read the law about about tax sales before you buy. In reality few redeem, but I have had a couple redeem and they were the nicer liveable properties. Typically they will read some of the rules at the sale and give some warnings, but not always...depends on the sale, it's buyer beware and they expect you to know the law and what you buy.