All Forum Posts by: François DesCotes

@Marc Tuckey @Baraa Yassin

Thanks for the info, guys! Truly appreciated.

Let me throw a wrinkle in there... What if I put a non-profit on a piece of land, with barns and a house?

Would that be considered commercial and be unredeemable by 180 days?

Just wanting to see who can flex those RE muscles the most. :-)

Welcome aboard @Rodolfo Morales Jr!

It's a great group of people here. Enjoy!

Keep your money moving!

Thanks for the feedback @Baraa Yassin! This was definitely a Sheriff's sale. It was the official dude himself. And the property was listed on the Sheriff's web site. I have heard of the constable sale but those are only posted on a physical piece of paper somewhere.

Yes, that Statutory Right of Redemption can be a killer if you spend too much money on the property. That's an important point, especially if you buy land and want to build on it. I did not know that you could buy the Right of Redemption. I'll have to look that up.

As for other liens, I am still learning how to figure them out. I wish there were a clear place where I could find all of those answers.

Have a great day!

@Preston Rudisill

Preston, I highly recommend Merki and Associates in Denton.

They have a lawyer on site to process documents that a CPA alone could not necessarily do. It's a one-stop shop. I have looked around before choosing Mark (Merki) and his team and everybody else would say: "Oh yeah, I know someone who can do that for you", whereas Mark has done it all for us. We've been customers for over ten years.

Hope this helps!

@Dave Passey

Dave, do you use a wholesaler or do you do your own research?

As a newbie, I fall into the "I don't know how to find those deals but I am willing to work to get them." :-)

I'd be delighted to hear how to be more efficient in finding deals.

Thanks for the feedback!

@Marc Tuckey That’s a good question. Hopefully someone can answer it. It would add a tremendous amount for the mortgage company to try to recuperate but at least it gives them a mechanism to not lose it all. I sent you a connection request.

Hey Folks!

I went to my first Denton County, TX Sheriff's Sales yesterday and it was an interesting experience. Thankfully my county is not huge so it was not a complete zoo. I am told that the Dallas County Tax Sale is a lot more attended and more cut-throat. There were about 20 people massed by the staircase inside the courthouse building, and it's a mix of race, gender, economic situation, and motivation. I say motivation because I met a very nice gentleman who was there to buy not for himself but for Habitat for Humanity.

What struck me the most was, despite the fair warning from the Sheriff about making sure that you knew what you were getting into before bidding, some people were not well-prepared. Three people started bidding on what could to be a $300k home that was auctioned for an HOA lien. It eventually went for $88k. I was baffled. I am obviously missing something because I thought that they also "inherit" the mortgage lien, which someone thought it to be at $230k. However I sliced and diced it, this would not make a good rental.

Unfortunately, I was not able to talk to the winner as he left right after he won. I did talk to a very nice couple who had been bidding up to the last minute, and asked them what their strategy was. I explained to them that I was new to the real estate investing world and that I would love to buy them a cup of coffee sometime so that I could pick their brains. To my astonishment, they had no idea it was an HOA lien sale and not a tax sale. They did not know the difference it made in their strategy. They thought they were getting a $300k house for cheap. With my freshly acquired knowledge from BP, I explained that there is probably a mortgage on this house built in 2014. I even showed them the BP posts were I got this knowledge. Their attitude was that even if they spent $100k and made a huge mistake, it would be worth it for the learning experience. I'm not that loose with my money. They also told me that they had bid on several houses over the past few months but never won. I couldn't help but feeling that they were just inflating the price for the investors with a plan. I don't want to be that guy.

Folks, the moral of the story is to please do your homework before you get yourselves in trouble. On the bright side, I have introduced them to BiggerPockets and I will also acquaint them with a wholesaler I just met (on BP) and who showed me some fantastic opportunities.

I'd be delighted to hear your thoughts about Sheriff Tax Sales and your horror/success stories. Strategies are even better...

Thanks!

Keep your money moving!

@Ryan Blake Great info! Thanks!

@Peter M. and @Ryan Blake

Thanks for the explanation guys!

I am going to the Sheriff's sale tomorrow just to see how it works. I can't wait to see what happens to the $250k house on the block for HOA dues. I went to see it yesterday and it is a very nice house, with someone still living in it. I am hoping to talk to some of the people who show up and learn even more.

Have a great day!

@Peter M. Thanks for the info Peter. I’m seeing a nice property worth $472k, built In 2014, going to auction for $17k in owed taxes. I also saw a good home valued around $250k, in a great neighborhood, being auctioned for unpaid HOA dues. I have a hard time believing that both of them didn’t have a mortgage. I’m not naive enough to think that they will go for pennies both it still sounds too good to be true.