All Forum Posts by: Arnie Abramson

Which state is the property in?  In Texas, it depends on several factors.  Let me know if I can help.

What state are the properties in.  It makes a big difference.

Texas has great tax deed sales every month.

During the Redemption period you can do work on the property if it falls into the category as posted in the code which states that if the work done is to MAINTAIN, PRESERVE AND SAFEKEEP  the property you can be reimbursed for that as well including the 25% penalty fee.  We advise the investors we help to get a licensed inspector for the property and his report will not only tell you what is necessary to bring it up to code (thereby certainly hitting the proper qualifications) but also providing pictures before any changes you make so you would have before and after pictures.  Just be careful not to UPGRADE as that would probably not fall into the proper category.  Let me know if I can help.

There is a service that does just that for Texas properties.  Not sure if I am allowed to go beyond that.  Happy to let you know.

Not sure about your state but in Texas, which is also a tax deed state, the opening bid is the amount of the tax lien so when you buy it at the auction, the lien has been paid.  If you buy it before the auction through a title company the lien would be paid off at closing with the amount coming out of your payment for the property.

WHAT STATE IS IT IN?  iS IT A TAX LIEN STATE OR A TAX DEED STATE?

Skip, my apologies.  I just realized that you were talking about wholesaling and many put it under contract and hope to find a buyer.  I was replying in general about tax sales in Texas.  You are correct, you should not put it under contract and try to find a buyer for several reasons.  One of which is the buyer may not have time to close with a title company before the tax sale.  Usually it takes a while to work out the details and then you go to a title company that is potentially overloaded toward the end of the month as the realtors are trying to get theirs closed for commissions before the end of the month.  There are other considerations as well.  There are ways to work around these situations but as usual-there are no short answers for tax deed sales in Texas.

Skip, if we buy it before the sale we get a title policy and part of the purchase price pays off the tax lien.  We do not draw up contracts and hope we can do something with it.  We purchase the property, pay off the lien and become the owner and the property is withdrawn from the tax sale.  There are several reasons for doing this such as eliminating bidding competition, securing a title policy, negotiating not only the price but the purchase terms as well-to name a few.  As you know, when I say we, I mean the investors that we help to purchase since we do not compete with our investors.  If you need more clarification, give me a call and I will be happy to go over it with you.

In Texas, once it is set for auction, you could buy it from the owner before the sale, pay the taxes and then you could wholesale it.  If you buy it at the auction, in Texas, it is a foreclosure sale and you are the new owner.  You could sell it (wholesale) immediately but you cannot get a title policy for a period of time if bought at the tax sale.  That may not preclude you from wholesaling it as some buyers do not require one immediately-for example you could be owner financing it.  Ned is right on target when he says there are no absolutes in this business.  I always say that there are no short answers :).