All Forum Posts by: Felipe Lois Affini

@Felipe Lois Affini 30K may or may not get you what you want, depending on turn out and bidding. I know in Tarrant County, most homes that are the type you are looking for get close to market value at auction, largely caused by investors who do not understand what they are buying or who they are bidding against. Attending Harris County auction is a whole different experience than any other county in Texas. Typically, Harris County sells three to four times the number of properties then the next closest counties, Dallas and Tarrant. In Harris County, there are as many as eight different sales going on at one time (one for each precinct). This isn't the case in Tarrant county, where they hold one sale; which you must register and sign in before 10am or they do not allow you to participate. This is also different from Collin county which holds the sales on the courthouse steps at the precinct courthouse. This is different from Dallas, that does not hold the sale in the same location every time depending on the issues within the county building the sale is held.

$30K can get you a property in a C or D area most certainly, but for a B or A area you will want to triple your auction money. Looking at the current list, there are a lot of C neighborhoods available, Hunter's Creek in south Fort Worth is in a solid B borderline A area ( I expect this one to get pulled from the sale). If this property does make the sale, you can expect it to sell for about $70,000+

Yet you can bid and get some great deals too. You must first do your homework on the properties that you are going to bid on to have the best chance. I have written several blog post here on BP about the topic, best of luck and maybe I will see you on the 6th.

Thank you @Richard D. for the info.

I imagine that $30k would not be enough to buy any property in an B or upper C neighborhoods mostly because the market over there is hot (as you mentioned some people tend to bid to a level close to the market value). In Harris I focused on precinct 7 (in land lots) and the bids went higher then I understood as a good deal.

By your experience there would be a more "affordable" county in Dallas-Fort Worth area that could improve my chances of having a winning bid in the value range I´m working?

I´ll check your posts about this topic too.

Thank you

0 Votes

Hi everyone,

I’m planning to participate in the next (March 6th) tax sale auction in Texas and I would like to have your thoughts about my strategy. I would also like to find anyone that would be planning to participate in any of these counties (mentioned below) auctions, so we could share ideas, experiences, strategies and so on.

I don’t have much experience (I have been to two auctions: in Dekalb County-GA last June, and December in Harris County-TX). For a few reasons (that I could explain in detail anytime) I didn’t buy a property in both auctions.

The counties that I´m interested in are Tarrant, Denton, Colin, Travis, and Bexar.

I still couldn’t leverage the amount of money necessary to invest in bigger properties, so I would participate with 30k.

My first plan would be to buy a small single-family property, fix, rent (i´m thinking for somewhere between 3 to 5 months) sell and reinvest (using 1031).

My idea is to (if I buy any property at the auction) partner with someone that could fund the repairs and manage the work, or I would get (with some local small investor in my area) the money and pay for the fix (although I think it would take longer to complete the process).

Anyway, I’ll need the assistance of a Realtor, Contractor, Property Manager through this path as I won't be there to personally manage all the work related to the property.

As a newbie, any help and considerations would be great.

Thank you

0 Votes

Originally posted by @Nicholas Aiola:

@Felipe Lois Affini

1. This depends on if you're searching for properties in the same geographical region as where you already own other properties. For example, if you're already doing business in New York and begin searching for new properties in the same region, those costs would be deductible. However, if you own properties in NY and are looking in Texas for your next property, none of those costs would be deductible. They would either be added to your basis and depreciated over the life of the property or capitalized and amortized as startup costs, depending on the expense.

2. This answer depends on a number of factors. Way too many to list here. But the short answer is yes, there certainly can be tax implications when dealing with nonresident aliens. But again, it depends on a bunch of things (individual status - resident alien vs. nonresident alien, home country, nature of income both in general and with respect to the individual, etc.).

Thank you @Nicholas Aiola for clarifying our doubts. This is really helpful.

About deductible costs, the values spent with my CPA (to open and register the LLC and one amendment) are deductible, right?

0 Votes

@Nicholas Aiola, first of all, thank you for sharing all this amazing knowledge.

I Have 2 questions if you let me:

1) I Have an LLC (born 2017) for real estate investments. I made no deals under this LLC (only with another LLC formed by my LLC and other 4 partners LLCs). Although I bought nothing I spent some money trying to - going to auctions, traveling, renting cars, etc. Some of the expenses were paid with my business debit card. Others with my personal credit card. Question: can I compensate this 2017 expenses (as I had 0 profit last year) with an eventual profit acquired in 2018?

2) Is there any difference between an LCC formed by non-residents to one formed by 100% Americans partners in terms of tax benefits and tax return?

0 Votes

Amazing job @Joseph Druther ! I loved the final result.

Really an inspiration for newbies like me!

Keep your track with massive action!

0 Votes

Hello,

I´m looking for ranch or raw land in tax sales lists (over the counter/struck off) or tax sales auctions, but i´m not finding it as i tought i would. Anyone could help me on how to find it, or if its actually just few/none at tha category to buy? Maybe would be easy to find in bank or other entities foreclosures (besides county tax sales)?

Thank You.

0 Votes

All Forum Posts by: Felipe Lois Affini

Felipe Lois Affini has started 4 posts and replied 66 times.

Post: Tax Auction in Texas

Post: Tax Auction in Texas

Post: Ask me (a CPA) anything about taxes relating to real estate

Post: Ask me (a CPA) anything about taxes relating to real estate

Post: 2 yrs ago I made 73K on a flip and started my investing career.

Post: Ranch/Raw Land in Texas