Tax Deeds in Texas

[Margaret Lewis]

I am interested in investing in Texas, specifically Tax Deeds and distressed properties.  Can anyone provide any insight has to the success  rate of investing in Texas? 

[Richard D.]

I specialize in vacant lots purchased at tax auction for several reasons @Morris Lucas. They are inexpensive, they usually come with mineral rights (big plus in Texas), they typically have short redemption periods, low rehab costs, and sell quickly at the right price; they also have large ROI. Seldom, do I hold a property more than 18 months. If I have it more than 9 months, I have it priced too high.

Keep in mind, I do my homework extensively on the properties I am trying to buy at auction. I look for liens that will be removed or that may stay, ownership history, platting, zoning, exit strategies, cost & profit analyses, and above all else; I physically look over the property. My lowest ROI to date has been only 77%.

I have multiple exit strategies, usually with buyers in mind. Sometimes, ok frequently with vacant lots, plans don't always pan out. That's why I say multiple strategies. I have several contacts in new home construction, architecture, land developers and community organizers who help me locate buyers and sellers. I had one C/O bring me a lady with four duplexes, that I wholesaled for $18k each. Low income neighborhood, yes, huge returns, not really, but it was all cash; net for me was $10k. The current owner rents for 650 per unit and is happy. My buyers are also my bird dogs as well.

@Lance Wakefield since you are in Collin County, if you plan on attending the Collin county sale; check with the Collin County Sheriff for property listings. They hold their sale in four different locations, and have each locations sales listed separately online. Any other locations, check with the tax assessor collector. Dallas County is John Aims office, his sales are organized by the Linebarger law firm. Avoid Kaufman county, that's good ol'boy country there. I don't get a lot of calls for Denton County, Tarrant County the list is online now at both the attorneys Perdue website, and Linebarger.

If you have any other questions, just Email me.