All Forum Posts by: Don McAlpine

Quote from @Jay Hinrichs:

Quote from @Chris Seveney:

@Jonathan Greene

We have recently seen an uptick in wholesalers getting properties “under agreement“ that are upside down thinking that the lienholder will take a haircut.

We were in first position on one and they want us to take a $40,000 haircut so they could satisfy the second because the second would not budge.

They called me every day for a week, asking if I would change my mind. They finally got the hint.

YUp wholesaler wants to take your short pay and put it in their pocket they are so not transparent in how they do bizz.  its going to get wild  with all the sub to and then gap lenders jumping in ala Morby playbook.. going to be some tears shed.

 There will be tears, but they can be comforted by the cool "Sub To" hat.

Quote from @Shane Bishop:

Does anyone have any experience purchasing tax delinquent properties? A new build next to us has been on the market for a few months and hasn't sold. The other day a note was placed on their door from the county tax office stating the property was seized and to be sold for delinquent taxes. The property was listed for $300,000 and the property taxes are roughly $1,000. What are some things to consider before attempting to invest in this tax lien?

 You should read the ENTIRE state statute on property tax collection and delinquencies to fully understand the process.  If the property is in South Carolina, it in Chapter 45.  

Quote from @Chris Seveney:

Quote from @Don McAlpine:

Quote from @Chris Seveney:

Got to give a shout out to a tax lien investor who had some random gmail address and went by the name Ben.

So, one of the unique things about note investing is when you buy a pool of assets is sometimes a seller is closing out their fund and will include assets that have no value.

back in 2020 when I bought a pool of assets, there were some assets included where the tax balance was greater than a property value. Therefore, it did not make sense to foreclose on these assets, nor keep them at a surface. So what I do is, I stick them in a file in check on them every one to two years.

Earlier this year, Ben reached out to me, wanting to buy the note on the property. I thought this was strange, and they commented they wanted to buy it because they had a large gain and wanted to buy it to offset these gains.

This was an immediate red flag. So I go dig out the file and do some research. Back in 2020 taxes owed or approximately $20,000 and the property value was worth around 30,000. Fast forward to 2024 when prices appreciated significantly, And I found out the property was sold at tax sale. At the time the taxes owed was approximately $40,000. The property sold at tax sale for $100,000. Thus, leaving $60,000 available for the note holder to claim.

I did not sell the note to Ben (who offered me $30k for it which again another red flag). I had my attorney file the proper paperwork to redeem the overage, which was recently granted.

So I don’t know who you are, but thank you, Ben

I would have eventually discovered this but not as early as I did.

As the lien holder (I'm assuming first position) weren't you notified of the tax sale in advance?  You might have been able to get the tax sale cancelled in not, but at the same time you might have made out just as well the way it played out.  

 I was not notified, they notified the prior note holder. I am not going to contest it I am happy to take the $ and run. Pigs get fat and happy, hogs get slaughtered. 

 Amen to that.  Congrats!

Quote from @Chris Seveney:

Got to give a shout out to a tax lien investor who had some random gmail address and went by the name Ben.

So, one of the unique things about note investing is when you buy a pool of assets is sometimes a seller is closing out their fund and will include assets that have no value.

back in 2020 when I bought a pool of assets, there were some assets included where the tax balance was greater than a property value. Therefore, it did not make sense to foreclose on these assets, nor keep them at a surface. So what I do is, I stick them in a file in check on them every one to two years.

Earlier this year, Ben reached out to me, wanting to buy the note on the property. I thought this was strange, and they commented they wanted to buy it because they had a large gain and wanted to buy it to offset these gains.

This was an immediate red flag. So I go dig out the file and do some research. Back in 2020 taxes owed or approximately $20,000 and the property value was worth around 30,000. Fast forward to 2024 when prices appreciated significantly, And I found out the property was sold at tax sale. At the time the taxes owed was approximately $40,000. The property sold at tax sale for $100,000. Thus, leaving $60,000 available for the note holder to claim.

I did not sell the note to Ben (who offered me $30k for it which again another red flag). I had my attorney file the proper paperwork to redeem the overage, which was recently granted.

So I don’t know who you are, but thank you, Ben

I would have eventually discovered this but not as early as I did.

As the lien holder (I'm assuming first position) weren't you notified of the tax sale in advance?  You might have been able to get the tax sale cancelled in not, but at the same time you might have made out just as well the way it played out.  

Quote from @Bruce Lynn:

Quote from @Don McAlpine:

Hi Julia - I'm a tax lien and deed investor in the Austin area and frequently attend the Bexar, Williamson, and Travis County auctions.  PM me if you'd like to chat.

I've never been to Travis County or Bexar County.  How do you feel like the auctions go?  Is there a lot of people that show up?  Is bidding crazy?  Any deals, or are they mostly close to retail pricing?

Williamson & Travis are kind of similar. You see the same people every month, many of whom are proxy bidders. There are bank foreclosures and tax auctions going on so when there are a lot of properties being auctioned it can get a little chaotic with a lot of attendees. Prices get bid up. Hays County auctions are less frequent but I have found them to have smaller attendance and more reasonable selling prices. Most of the best tax deed properties in Bexar are struck off prior to the sale, and there are frequently properties at the auction that haven't sold at previous auctions with very high opening bids.

Hi Julia - I'm a tax lien and deed investor in the Austin area and frequently attend the Bexar, Williamson, and Travis County auctions.  PM me if you'd like to chat.

Hey Nicholas - I don't think I ever mentioned taxlienacademy, I have never even heard of it.  I did take the Tax Sale Academy course and can found it beneficial.  I found the content very relevant and informative, and the owner, Casey Denman, is a FL Realtor® who makes himself available via email to answer questions even after you complete the course.  I return to the site regularly for easy access to state statutes and new features that are added.

Quote from @Waleska Molina:

Hello @Don McAlpine I was interested to know if you were able to successfully do the quiet title action? I am interested in investing in Tax Deeds in New York as well. Would you mind sharing the name of the attorney you used?

 Yes, I ulimately got this done through Tax Title Services.  The thing to remember is New York is an attorney state and my mistake was not asking enough questions of my attorney.  I had incredible diffculty finding a RE attorney to work with, and most are experienced with customary RE transactions.  I would recommend you find an attorney that truly understands the tax sale process and laws surrounding them and can do quiet title work if/when needed.  It would be best to begin your search well in advance of an auction.

I have found an attorney that I will work with the next time.  I can't recommend him as I haven't yet worked with him, but would be happy to share his contact info if you PM me.

Quote from @Lee Macky:

So, if the previous owners have passed and the housecwas vacant 9 yrs. I have a Special warranty deed.  Do I have clear title and am I at risk of anyone making a claim?

This is best asked of an attorney in the state the property resides, but a Special Warranty Deed only warrants the title for the timeframe the previous owner held title.  This might be adequate for whatever you want to do with the property, but offers less protection than a General Warranty Deed that would offer truly clear title.

Not legal advice...

You should negotiate a bigger discount.  Without all of the paperwork the note is less valuable than one that is fully-compliant.