Use a hard money loan to renovate a tax lien property

[Jason Taliaferro]

Hello everyone;

I am wondering if anyone has used a hard money loan to rehab a property they gained in a tax lien sale. Many tax lien properties need a lot of work. In the Baltimore area, where I am looking, most are empty shells. I know many hard money lenders will lend to rehab a REO or other deals people find. But what about when the investor already holds the deed to the property.

Has anyone experienced this or found they needed funds to rehab a property they have foreclosed after a tax sale.

[Ned Carey]

@Jason Taliaferro yes a hard money lender will fund it if the numbers are right. I have never gotten a hard money loan on one we have foreclosed on but often our buyers get hard money loans.

Title insurance can be tough for tax sale properties. But it is actually easier than some states. It is often about who you use as a title company. Most title companies this is like something form outer space and they are afraid to touch it. Good investor title companies shouldn't have a problem. We have yet to sell a tax sale property we couldn't get insured.

It may also depend on who did the foreclosure. That is something to think about when picking your foreclosure attorney.