All Forum Posts by: Chinmay J.

Thanks all.. I have dropped a line to @Ned Carey. I am hoping that he will respond.  Looking to get enlightened by his expert opinion. 

I am planning to invest in Tax Liens in State of Maryland in 2017. So I am trying to do my homework beforehand so I would be prepared for next year.  Being a novice in this area, some of these questions are probably too basic for some.. 

From reading on the county website(s), I know the basics of this but there are some logistical questions that need to be answered. 

Maryland allows redemption period of 6 months for the homeowner to pay his taxes and reclaim his property. So if I am supposed to be receiving payments for 6 months, how is that process handled? Does the county provide with the owner where to mail the payment check? Or do I have to contact the owner? I plan to have a P.O. Box where they can send payments, so they don't have direct and easy access to my home address. 

Is there any information on what percentage of tax liens finally end up getting foreclosed? I could not find this anywhere on the county website. So do the players in this market have any idea? I just need to know to see what kind of success rate I will get on average. 

If there is an existing mortgage on the property, is it possible to strike a deal with the bank/lender that owns the mortgage note without actually foreclosing the property? 

How can it be ensured that the properties you are bidding on have a marketable title? Does a Title Company, someone who is working for me, has to be involved from the get-go?

@Rich Prestridge - It is always a good practice to put the house on the market that shows well. If I were putting my house on the market, I would either A) make sure its vacant, cleaned so it "shows well", or B) staged in such a manner so as to attract the best offers.  None of my tenants keep the house tidy as I do.  So as @Arianne L. said, people are not going to feel nice and cozy about a place that is rented out.  This is when you get a lowball offer. 

Even as an investor, I would think twice about buying a place that is tenant occupied, if there are other options on the market. I don't know these people. I didn't put them there. How big of a lease do they have left? As a landlord, I want to make sure that I screen my tenants. Thankfully, Northern VA area has robust rental market, so I would rather buy something that doesn't have an existing tenant and then put a brand new tenant, and that way have full control.

@Federico Gutierrez - Yes, its a  standard "Common Law" Lease that has been signed and dated.  I took a calculated risk to save couple of hundred dollars. I should have just put some hard conditions in the lease agreement for violating the lease. Definitely a learning experience. I acted in a penny wise and pound foolish manner. 

@Jason - Thanks. I know typically I can't shut off the utilities, but it is an unusual circumstance where we have in the contract that they will promptly pay me the utilities. I am not going to do anything rash without consulting a lawyer first, but I wanted to see if there was anyone here who has legal background. 

Unfortunately, we are only in 2nd month of 6 month contract. If the contract was coming to the end, I would have just deducted out of the security deposit.

@ Glen -I have never had rough user.. Knock on wood. Didn't really notice any denting with my appliances. 

@Glen - I have been renting out my own properties for last 4-5 yrs, and I always go with Stainless Steel, because as you said it looks good at least in my opinion. It looks more classy. 

So, after my last tenant left earlier this Spring, I quickly rented out my place to a couple for period of 6 months. In the Fall of 2016, I will be moving back to my place. Since it was only 6 month lease, both the tenant and I agreed, and put it in the Lease Agreement that I will be paying for Gas, Water, and Electricity out of my account and they would reimburse me with a check. Given that it was a short lease, both of us agreed that it was a very reasonable approach so as to avoid connection charges.

When I asked for a check last week, I got a quick response from the lady saying she put it in the mail. This was last week. Highly improbable that its going to take 7-8 days for local mail to arrive. Although mail gets lost and delayed from time to time, I am trying to find a solution for this predicament for the long term.

Unfortunately, I didn't put hard conditions that they will be fined for lack or delaying the payment. In retrospect, I probably should have. I know I can always deduct the bill from their security deposit once they leave, but my question was whether I can give them enough notice (2 or 3 weeks) and shut their utilities. Will I be held in breach of the contract if I shut their utilities for non-payment. 

I am a licensed realtor in Commonwealth of Virginia.