All Forum Posts by: Jessica Howard

@Ned Carey @Bruce Lynn and @Denise Evans many thanks for the rich dialogue around quit claim deeds and the squirrelly nature of investing in Alabama.  Knowing that it can be lucrative to invest there, I plan to hold what I buy from the agent/wholesaler. The quit claim situation made me nervous though and I had more questions.  I'm going to pose Denises questions to the seller and conduct additional due diligence with the county.

I have invested in liens in my backyard, and have been researching out of state tax sales for several months but haven't invested elsewhere yet.  @Denise Evans can you recommend a title company and attorney in Birmingham? I think I read in another discussion that you retired.   

Cheers everyone.

Hello, 

I'm looking into purchasing Alabama tax deeds from a private seller who provides quit claim deeds after about 60 days.  What type of due diligence do I need to conduct to research these properties? The seller provides the property address, assessed and market values and lot size.  I have looked up properties by address on zillow and found the information the seller provides and the zillow information a match, but I feel like I should be digging deeper for more information. 

Second question: can I resell a property with a quit claim deed? If so, how much profit can I expect to make? My research tells me that I may not be able to get market value unless I quiet the title.  If I choose not to do so, what are the risks for me as a reseller?

Thanks.

Thanks all for chiming in.  I have a few calls out to GCs in Baltimore to get a feel for the cost to rehab and rebuild these types of properties to get an idea of my numbers. The properties I'm looking at now are from the 2021 OTC list. Two of the properties have water bills and other city liens on them.  All need major work, but the reason I am interested in them is because they are on good blocks with decent ARVs. I participated in the 2022 tax sale to learn how bid premium works as well as the process for analyzing tax sale properties in Baltimore City.  I've purchased a lien in Prince George's County MD this year and bid in the St. Mary's County  MD sale - albeit unsuccessfully, but I learned a lot.

Hello everyone,

I came across some properties on the Baltimore City tax sale list that I considered purchasing but wanted some feedback regarding. There are 3 properties, all on good blocks.  My spouse, who has 4 rentals in Baltimore City drove the blocks and saw the properties.   The city back taxes and other liens (I purchased lien certs on each property to find out the details) are far below the ARVs for each property. Two properties had been recommended for "razing"; which I construe as being demolition. My exit strategy is to pay the taxes and then flip 'as is' to a rehabber. Has anyone had experience using this strategy in Baltimore City? Are there any investors in Baltimore looking for these kinds of deals?

Thanks everyone - I appreciate the feedback.  One of my buyers straight up told me that he wasn't paying the prices he paid earlier this year; however if the numbers looked good he was in. I'm pricing this latest potential contract at a reduction. Wish me luck with the seller, he's looking at comps from earlier this year.

I am trying to figure out ARVs for properties I'm working on getting under contract and the 3-6 even 12 month comps seem out of context now that the market is changing and home prices are dropping? I started looking at comps from last year and even in 2020, but I haven't been in the business long enough to know what makes sense.  For those of you running ARVS in this market, how are you adjusting your numbers?

@Dallas Hayden What's a topo?  

Here's a bit more information.  The lot is 4K and it's 3500 sq ft. It's been used by the previous owner for camping pitching a tent, etc.  There is a restroom and playground nearby.  Another option could be to rent the space out and campers can bring their own set up.  Has anyone had a similar situation to consider? 

@Dallas Hayden I dont know the grading, but the seller says I can build a cabin /place a camper and they may stay all year round; there are other year round residents.  Don't know about sewer/septic on property.  The electric is at the poll right next to the property needs to be hooked up to a power meter. @Bill B. it is near a lake but I don't know how many feet away yet.

@Jonathan Klemm thanks for adding a reply.  I've looked at the area and not much has sold in the immediate area, but I've found a few land sales a little further away.   I'll reach out to a commercial broker.  The RE agent I reached out to put out some feelers and I suspect folks are off enjoying the holiday as they should.   I haven't heard back yet.

As for my plans, I'm thinking it would be a good lot for a tiny house.  The area has a camping season and there are other STRs in the area. 

@Tanner Sherman thanks much for the recommendation, I was able to reach a realtor who was very helpful.  I'm working on getting comps now.