Buying My First Tax Deed

[Mike Rethis]

Hello everyone,

My name is Mike Rethis, and I'm brand new to the Real Estate world. If you read my bio, you will learn quickly where I am at in my journey to the unforeseen future. After just getting my agents license about a month ago, I will be signing with a broker in the next few weeks. During my days working as a contractor, I am ambitiously learning every inch of real estate building for an extensive range of investment possibilities; while networking and learning from other trades. I'm 22 years old, thirsty for knowledge, and eager to attack and conquer the RE world! 

I'm sure many of you started out like me! I have a lot of money for my age, but I am nowhere ready to buy a house cash or even put 20% on a multi family house, pay the closing costs, and then pay more money for renovation. Even just 20% down on something ~$300k would be a stretch. 

I live in CT, a Tax deed states. I am looking to go to the next auction, get the lay of the land, and see what happens at these auctions. My thoughts are that if I can find a good enough deal but don't have enough liquidation, I can pool money with other people I know to make the auction happen. Worst comes to worst the owner pays the money back and we all get our money back plus interest. Best case scenario (for me of course) is that I get the deed for a greatly reduced price after 6 months. Most times I wont end up getting the property but at least I'm not losing something. I would like to buy 3 families, and take advantage of the BRRR method, but I feel the economy is not in a good position for me to be getting one at this point and time. This may be the best bet for me getting a property for under market value. I also think getting out there as an agent and doing a couple listings/buys will help me come into the BRRR method more confidently, effectively, and accurately.

Many people that have done more deals than me (>1), I value any opinion you can give to me on this thought process good or bad. Is my thought process on a good track here? What should I look out for here, and am I missing anything? 

There's 1 more thing I am hoping to clear up. Lets say for example the taxes owed on the property are only $20k but I bid to $50k, win the auction, and the seller pays me back 3 months down the road. Am I making interest on the $50k, or just the $20k owed in taxes and getting my $30k back with no interest?