All Forum Posts by: Andrew Bourgeois

@Jessie Reid

So cool! I'll message you guys about connecting. 

The link regarding costs incurred on tax sale properties didn't come through. Maybe you can try emailing? 

@Ronald Rohde Thanks man! Look forward to connecting and learning about possible title solutions. 

@Dwayne Poster In what area are you located? 

It does seem that properties as described by @Bruce Lynn are not often or even rarely redeemed in our area, or at least the areas I'm familiar with in Texas. 

This is my latest idea...

I'm interested in re-financing the property to recapture 80% of my investment (what my local lender is willing to lend). 

Then, I want to owner-finance the sale of the property (deferring gains, recapturing some capital through the down-payment, eliminating my responsibility for maintenance). In theory, I would recapture all of my investment through the refinance and the owner-finance down payment, and still make a little monthly cash flow on the spread in the interest rates. The current tenant wants the property so it seems ideal. Then, I take my capital and move onto the next property.

Any thoughts?

Does anyone have experience trying to refinance a property and then seeking to owner-finance?

@Ronald Rohde Thanks for this information. It's a learning experience for sure. 

Do you know if it is possible to sell the property within the right of redemption period? I'm great if you want to connect offline! 

I understand something like that would likely only interest the buyer if the price was reasonably discounted and they were comfortable assuming the risk of the previous owner redeeming the property. 

1/10/22 Update

We've decided to hold the property for at least 12 months, sot that at least we qualify for LT gains vs. ST gains if we elect to sell the property. During the 12 months, the current tenant will lease the property for $1,300/month! Best thing, we are not investing any additional capital into the cabin/home for repairs! We basically felt the property and very large barn where equally valuable to any tenant as the small sf home. So, we basically said $650 for each, arriving at $1,300 rent. 

During the 12 months, we will also try obtaining a waiver or surrender of rights of redemption from the previous owner. If we can secure that, we are aiming to add several mobile homes on the property for additional rental income. We've already obtained approval from the water provider and it is within the bounds of the county ordinances. However, we will not improve the value of the property until we can get those rights waived. 

Thanks for all your thoughts! Onto the next deal. 

@Kim Gibson I'm A-OK if this turns out to be my tuition on tax sales. I'm leaning towards investing enough in the property to keep renting it and pulling out my capital. 

@Patrick Pendley Thanks for the offer! Would be glad to meet up sometime!

@Pete Harper Good to know. I'm working with a title company now that's going to check into liens!

@Bruce Lynn Thanks for the feedback Bruce! I'm hoping this is one of the exceptions... fingers crossed. I've got some time waiting on the Constable's tax deed, so I'm not in a rush. 

Thankfully, my banker has indicated that he is willing to loan up to 80% of my cost in the property. Worst case scenario, I think I'll put in the money to make the house "reasonably" safe and rent it until the redemption period expires. Right now the house would not pass code in many respects, so it's nearly certain that some repairs would be deemed reasonable and reimbursable if the previous owner exercised his right of redemption.

With that said, BRRRR is still on the table!

@Justin Fox

Best of luck on that one bro! I've got a friend who works for Stewart Title in Beaumont if you're looking to explore other companies to see what your options are. Let me know and I'll make the connection. 

Thanks for the heads up @Justin Fox

The law firm hasn't issued the deed yet, so I'll be sure to ask them about that!

PS - I'm originally from Groves. I see you're in Vidor. Would love to hear how your REI journey is going in the Golden Triangle.