Tax Lien Foreclosure

[Austin Brewer]

Investment Info:

Other other investment.

Purchase price: $4,361
Cash invested: $4,361
Sale price: $10,000

Commercial property I acquired through a tax lien foreclosure. This was a learning process and one of my first tax lien foreclosures. Most of my cost was the attorney I hired to execute the foreclosure.

What made you interested in investing in this type of deal?

Curiosity on how the tax lien foreclosure system worked in Arizona. I felt that it was a win win transaction, if I didn't get the property than I would get all my money back with interest from the liens, and the attorney would then be paid by the owner, so I wouldn't lose anything.

How did you find this deal and how did you negotiate it?

I bid on the back taxes through the county and found it on the back tax list. When I researched I found that the business owner had lost other properties so I felt that my chances of acquisition were pretty good.

How did you finance this deal?

I paid with savings.

How did you add value to the deal?

I acquired my Real Estate License to list the property myself because in my area the commission on land is 10%.

What was the outcome?

I made a little bit of money on the deal and learned a ton!

Lessons learned? Challenges?

I learned how the process worked and a little more depth for the city's zoning types.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I listed the property and asked a coworker to take the other side of the deal (because I owed him one).