All Forum Posts by: Dennis Weber

I couldn’t say it was a scam but I’ll tell you there’s cheaper ways to learn more. 

First off, pick a state. I don’t know where you live so don’t if that’s a good place to invest or not. If it is, concentrate there. No reason to learn Texas deeds when you’re investing in Iowa liens. Go to county website for the rules and laws there. Then take your $14000 and buy. You will either win and learn or lose and learn. 

You should reach out to borrower and see what the problem is. Could be he sent payment to wrong address, servicerscrewed up or something. 

Not a lawyer but you'll want to talk with one. Penalties can be really steep. Instead of setting up a 503 the investors could start an investment club LLC.

They aren’t going to lose their home in a tax lien sale. There is still the redemption period before they lose it. 

I can see several ways for it to work. I've thought about gettinga JV funding partner in Indy tax liens. The county makes you fund first before you get bid paddle. Property name would be in funder's name. Can't see any reason why someone would purposely bid on bad properties.

Which state(s)?  What would this persons responsibility be?

I don’t know squat about the idiosyncrasies of La tax sales. So take what I say knowing that. You say that the seller got the property at a tax deed sale. La doesn’t have tax deed sales. Maybe he got the deed after tax lien redemption period passed?  You say you can’t get clear title from title company because of tax lien. Is it because it has a tax lien on it now (because your seller didn’t pay new taxes) or they won’t give you title insurance because the title isn’t clean because of the previous sale?  If it has a tax lien on it presently and if it’s not past redemption, pay it off. You’ll still need to Quiet Title it. If tax lien is past redemption then your seller may not own it anymore. 

Don’t know if I was any help. I took a shot at it. 

In my opinion, I don’t think it’s a good business. More and more states are limiting your cut to 10%. Plus they are making sure the property owners are being notified of the overage. Besides, who wants to run a business profiting off of other people’s misfortunes. 

@Saad El Alami it is. 

@Saad El Alami Ha! I knew it!  I think we’re the only ones that call them surplus sales. I’ll also assume we are talking about Marion County. I don’t go to the surplus sales because they don’t fit into my investment model. I like the volume of the main sale in October. But that 120 day redemption period is enticing. 

The good news is that the taxes superseded those other liens. so those were wiped out. With the exception of very few, the surplus sales have the properties that weren’t sold before. Be careful. The bad news is code enforcement will be adding some more liens which makes it hard to flip without quit claim. However, If you do all the repairs to eliminate the violations you can go to court and have them lowered to 10%.