All Forum Posts by: JR Haseloff

I just passed my test and am ready to meet with sponsored brokers in the Fort Worth area!  

Now, as the rest of you know, when you submit an application to TREC, your personal data is sold off to every broker in the world.  My spam box is now full, I've received dozens of USPS mailings, and even have a couple text messages to boot.

Principally, I'd like to work with anyone who DOESN'T spam new applicants but as an entrepreneur, I also understand the data stream and spamming it relatively cheaply could provide a return.

QUESTION:  As an active duty service member, how do I determine the best brokerage relationship that understands that I will NOT be their top salesman anytime soon?  Are there plenty of other agents that only do this part time?  

My goal would be to gain experience over the next few years prior to retirement by only closing on 3-4 deals a year.  I want to ensure I get my feet under me slowly, provide a great service, and communicate that to a broker appropriately.

Couple questions for the BP audience:
1.  Anyone here gone through the foreclosure process in Yavapai?  Even if you've just partially gone through the process and sent a notice of intent, I'd be interested in hearing from you.

2.  Did you go at it alone or hire a real estate attorney? If you hired, what was their costs and was it worth it? The real estate attorneys I've cold-researched don't exactly teach the process, what to expect or what their costs are.  I've received numerous bulk mailings from attorneys that know I have a 3yr tax lien but I'd probably take a referral than a company that mails me out of the blue.

AZ Law

42-18201. Action to foreclose right to redeem; subsequent certificates of purchase by assignment

42-18202. Providing Notice

Welcome @Glenn Mayo! I'm being restationed in Fort Worth this summer and am on a similar journey as yours (though I'm currently leading by one child!).  

I'm currently looking at the following areas for a house to purchase and rent 3-4 years down the road: Ridgmar, Ridglea North, Far West, Palmilla Springs, Benbrook, La Bandera, etc.  

Good luck to you. 

@Bill S, that is crazy talk!  Allow someone else to tie up there money in hopes of getting the property from a TLC!

You are correct on both parts.  I was looking at 18% on my spreadsheet, should have been 16%.  Also, The interest earned on subsequent tax is the same as that which was awarded when the original tax lien certificate was purchased.  I must have confused another county in that regard as well.  

This is actually pretty disconcerting to me because when I bought the subsequent taxes the first time I had confirmed it the other way.  Here's Yavapai's Tax Law on subs:

42-18121. Payment of subsequent taxes by certificate holder; separate certificate of purchase by assignment; fee

A. On or after June 1, if a person who holds a certificate of purchase desires to pay subsequent taxes, accrued interest and related fees due on the property, the person shall exhibit the certificate or receipt of registered certificate to the county treasurer. The treasurer shall enter the amount of the payment on the certificate and on the record of tax lien sales. The amount of subsequent taxes bears interest at the rate stated in the certificate of purchase from the first day of the month following the purchase of the subsequent tax lien. The county treasurer shall collect a fee of five dollars from the holder of the certificate for making the entries.

B. Beginning in calendar year 2016, on or after June 1 in a county with a population of more than three million persons if no prior year certificates of purchase are outstanding, if a person who holds a certificate of purchase for tax year 2014 and afterwards desires to pay subsequent taxes, the county treasurer shall issue a separate certificate of purchase by assignment for each subsequent year's taxes, accrued interest and related fees due on the property. The principal amount of each subsequent year's certificate of purchase bears interest at the rate stated in the original certificate of purchase exhibited by the person from the first day of the month following the purchase of the subsequent certificate. The treasurer shall collect a fee of five dollars for assignment of a certificate of purchase for each subsequent year. Except as provided by section 42-18201, subsection B, subsequent certificates of purchase by assignment carry the same foreclosure right as the original certificate of purchase, and partial payments shall be accepted by the treasurer as prescribed by section 42-18056, subsection C, by any party with a vested interest in the property.

 Another reason you might be OK with 2-4% on a tax lien certificate:

I won a TLC in Yavapai County in Feb, 2013 which got bid down to 4%.  In June, 2013 I have the opportunity to buy the subsequent taxes without any 'bid-down' competition.  Those taxes accrue at 18%.  I bought the subsequent taxes again June, 2014 and 2015.  

I intend to foreclose in February.  If I am paid out, I will get 1 years of taxes at 4% and two years of taxes at 18%.

Obviously, very, very few TLCs will ever get to foreclosure and while not all will make it to the second year,  the ability to pay off subsequent taxes without competition can increase possibility of returns.

JR

@Bernard B. I'd be interested to know where it is required to mow the grass as part of the Tax Lien Certificate process.  I tried googling it and really only came up with this thread on BP.  I've invested in IL, FL, AZ, CO and IN and while 'every state/county is different' this grass mowing this is really peculiar to me.

I also couldn't find anything on the Madison County Tax sale site.  Is there a local municipality requirement on mowing grass? If so, that would provide a new wrinkle in my due diligence that I haven't been worrying about the past 11 years or so I've been casually purchasing TLCs.  

Thanks for any further info on that!

JR

FOLLOWUP

For anyone interested in Tax Lien Certificate investing in counties with Premium Bidding, I use this spreadsheet when evaluating how much premium to bid on a Tax Lien Certificate based on it's face value and what return I am seeking.

Higher premiums risk cannibalizing your returns and can even lose you money if you don't earn the interest back before it redeems!

 I wrote up my latest experience for Teller County, Colorado here.  The 10% 'guaranteed' interest can become cannibalized pretty quickly with the premium bidding however I use a spreadsheet that helps keep the premium from getting too far away from you.

I use this spreadsheet when evaluating how much premium to bid on a Tax Lien Certificate based on it's face value and what return I am seeking.

Higher premiums risk cannibalizing your returns and can even lose you money if you don't earn the interest back before it redeems!