All Forum Posts by: Clay Ickes

Lots of things to check on in CO sales....does it have utilities?  Will it ever have utilities?  Is it buildable?  Does the county allow septic and what are the requirements...and what will that cost? 

Is there access?...Where is that access....is it year round access?   Is it buildable?  Ask the builders in the area what their considerations would be?

Have you seen it?.....See everything you buy....100% no exceptions.

Any houses in the area?

Typically you cannot buy these kinds of properties with loans....so not sure where that part came into play...unless your partner is loaning you the money.  If they're loaning you the money, why don't they buy it?  Why do they need you?   What value are you bringing to them?

Have you been to the tax lien sale before?  What is bidding like?  Do you think you will be the only bidder or will be there be 100s of bidders.  Last month I was in a super small county in Texas and the courtroom was packed..standing room only.....plenty of the usual suspects there bidding...but plenty of others too.   One property I wanted had minimum bid of $10,000 and went for over $100,000. That's cash only, day of sale.   The guy who won, actually had it under contract for less, but thought he could pick it up at tax sale for less....but that proved wrong...had to pay more than his current contract.

What kind of title does CO give you.  How does your title company handle that?  How long will they need before you can resell with title insurance?   

Also will you need to resale with cash or financing.  Go find your lenders now for your potential buyer and see what kinds of requirements they have and if they would lend on the piece of property.   If they won't lend for whatever reason, then you know you will need cash buyer in the end for your exit.

I always advise people to never buy at their first tax sale....maybe first 2 or 3....go watch...see how the bidding works...see who is buying...what are they paying....talk to them....ask them about their exit strategy....ask them why they bid that amount...ask them what they think it is worth.  Ask them how often they buy at the sale?...and a million other questions you think they will answer for you.

Tax sales are all fun and games until it isn't. Plenty of people buying at the tax sales with no clue....don't let that be you.  It is not an easy get rich quick scheme in most parts of the country.  I see plenty of people buy what will be real headaches.  Happens at every sale I expect.   There are deals, but not always easy.

Best wishes and good luck.....

Do you know about land and how to evaluate it? Many environmental and zoning issues can limit what you can do with it. 

Get a title search and make sure you won't be the new owner of any attached liens.

@Clay Ickes

If you want to buy and can live at home don’t waist another dollar on rent. Suck it up and save and then make your move! 🙌

@Clay Ickes

Stuck renting?

How about an FHA 3.5% down loan?

The writer also does not consider the tax benefits when taking into account the “real” return. Uneducated author, I’m a millennial, I own my primary residence (house hacking) and plan on continuing to buy as much as possible.

I would definitely love if renting became the most popular trend for my generation long into the future, then I don’t have to worry about tenants.

Did your dad give you the article because you are living in his home and don't plan to leave until you could afford to buy a place.  Your dad is telling you "No.... don't wait.. leave now because renting is much better than buying..here...read this article"..lol