All Forum Posts by: Will Sifert

Quote from @Jay Hinrichs:

Quote from @Don Konipol:

Quote from @Don Konipol:

I used to think that most investors purchasing mortgage notes were clueless as to the mechanics of how it worked.  I now see that lack of knowledge is nothing compared to the cluelessness of investors who purchase tax liens……

1. About 50% of investors buying a tax certificate think they’re buying the real property
2. About 75% have no idea about redemption period
3. About 85% have no idea about waiting time for filing deed
4. About 90% think tax liens work the same everywhere 

Has anyone heard “investigate, THEN invest? 

when i first thought of doing this was in Hinds county MS.. I had a very successful HML company there funding mid 2000 turnkey guys/gals. I thought since i was there I would go buy some tax certs what can be so tough about those.. I took 30k to the sale and got schooled big time.. the big players are there with their lap tops the sale goes at lightning speed those guys snag most everything I end up spending my 30k.. And not one redeemed I lost interest trying to follow them and just chalked it up... I grew up in Tax SALE in CA with my dad so I thought what could be so tough about this.. Tax SALE and tax certs big diff. Now you get all these gurus trying to sell the sizzle like folks are going to end up with pretty homes for 5k each total BS. TAX CERTS are a bizzness not something you do as a passive investor or someone like me who is busy with their core business.. thankfully it was only 30k

Jay, you were doing it for the redemptions, to make interest. Now, I don't know if the property you could have eventually tried to take ownership of, it there was value there but I come across this a LOT in my tax sale buying in Louisiana and I think WTF is this guy doing!!! lol

Perfect example, guy goes to tax sale for a couple years in a row buys a bunch of stuff, 4-5 years later everything that didn't redeem he just stops paying on it and lets it go back to tax sale. I see there is value there I buy it. After 3 years he loses his right to redeem from me and the original owner is WAY out of the picture. I quite title on all of them. I get the property. I have about 5K invested into it, I sell it for 40K. In the process of him being served he calls me and we talk, I ask why he let it go, he said it never redeemed and he got tired of cutting the grass!!! All he had to do was hire an attorney to file suit pay another 4-5K then sold it for 40K. But "it didn't redeem and he got tired of paying the tax bill and cutting the grass so he let it go".  I didn't owe him anything legally but gave him $500 for a quit claim to make my suit a little easier and cleaner. He was happy and oblivious.

Summary from what I have read and what was explained to me. There will be a state wide election in December to change the tax sale laws. To me it sounds similar to Florida. The state is pushing for it and I am sure were it will be worded on the ballot to sound like a great thing, 99.9% of the public doesn't understand this stuff. I have no doubt it will pass.

Changes: There will still be a tax lien sale like there is now except the bidding mechanism will be to bid down % interest rate instead of % of ownership. After the 3 year redemption period you need to do noticing, file law suit, get a judgement but instead of taking ownership of the property like you do now, the new system will cause it to go to a tax deed sale to the highest bidder. Overage can go back to the owner. 

I have done very well acquiring ownership of abandoned, run down houses and vacant lots. Many times the owners can not be found or if they are they want nothing to do with it and in a lot of cases if found, I pay them for a quit claim. I wonder if the parish will keep the overages in all of the cases where the owners can't be found or if they will scoop the difference in interest like AZ does.  I have quieted title on over 20 properties over the years, with many more in the process now or will be starting soon. I have turned a couple thousand dollar investment and lots of work and learning into a seven figure business. I guess all good things come to an end eventually. The only upside is that this doesn't go into effect until 2026 so everything I bought last year, this year and next year will continue under the current laws. As of 2026 I will no longer buy liens in LA, there is no upside. Make a lot less on interest and no change to acquire property. This will help some owners get back a little money from overages but I bet in most cases its the parish that will get what would have been my profit. They found a way to profit off of tax sales much like other states have done.

Louisiana—Property Tax—Administration of tax sales of immovable property.

, effective 01/01/2026, upon adoption of the proposed constitutional amendment at the statewide election to be held 12/07/2024, repeals numerous provisions related to tax sales and provides that the assessment of property taxes and other impositions on immovable property will constitute a lien and privilege on the property in favor of the political subdivision to which taxes and other impositions are owed. The legislature must provide, by law, for: (1) interest on the delinquent taxes and other impositions not to exceed 1% per month on a non-compounding basis; (2) a penalty not to exceed 5% of the delinquent taxes and other impositions; (3) a period of time during which the lien cannot be enforced; (4) a procedure for claiming the excess proceeds from the sale of the property as a result of the enforcement of the lien; and (5) the authority of the tax collector to waive penalties for good cause. The legislature may postpone the payment of taxes, but only in cases of emergency declared by the governor or a parish president pursuant to the Louisiana Homeland Security and Emergency Assistance and Disaster Act.

Quote from @Roy Oliphant:

Quote from @Jay Hinrichs:

Quote from @Don Konipol:

Quote from @Don Konipol:

I used to think that most investors purchasing mortgage notes were clueless as to the mechanics of how it worked.  I now see that lack of knowledge is nothing compared to the cluelessness of investors who purchase tax liens……

1. About 50% of investors buying a tax certificate think they’re buying the real property
2. About 75% have no idea about redemption period
3. About 85% have no idea about waiting time for filing deed
4. About 90% think tax liens work the same everywhere 

Has anyone heard “investigate, THEN invest? 

when i first thought of doing this was in Hinds county MS.. I had a very successful HML company there funding mid 2000 turnkey guys/gals. I thought since i was there I would go buy some tax certs what can be so tough about those.. I took 30k to the sale and got schooled big time.. the big players are there with their lap tops the sale goes at lightning speed those guys snag most everything I end up spending my 30k.. And not one redeemed I lost interest trying to follow them and just chalked it up... I grew up in Tax SALE in CA with my dad so I thought what could be so tough about this.. Tax SALE and tax certs big diff. Now you get all these gurus trying to sell the sizzle like folks are going to end up with pretty homes for 5k each total BS. TAX CERTS are a bizzness not something you do as a passive investor or someone like me who is busy with their core business.. thankfully it was only 30k

All that and the SC Hennepin Decision last year now causing states to re-write their laws so that if an investor does somehow end up converting a lien to a deed, that investor may be liable to tax defaulter for the difference between the lien and market value of the property, Tax Liens seem to be VERY MUCH a place where only the big money, interest investors can make it worthwhile.

Fortunately, Texas has "immediate" possession Tax Deeds so we keep our focus there.

Louisiana is changing their tax sale laws now as well, killing my tax sale business that has done very very well over the last 15 years.

Quote from @Don Konipol:

I used to think that most investors purchasing mortgage notes were clueless as to the mechanics of how it worked.  I now see that lack of knowledge is nothing compared to the cluelessness of investors who purchase tax liens……

PREACH!!!  your statement is 100% true. And it's those clueless that come and go every year but each year there is always just enough of them to bid everything too high or low depending on the state to make it a good deal for the rest of us. Each year there is new clueless to ruin it for the rest of us on an ongoing basis.

Quote from @Kristine Ann:

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place?  

The last two tax lien houses that I got and sold had major plumbing issues. I had to deduct 5K off one sale and 9K off the other once the buyers did plumbing inspections... It's not always what you can see once you get inside, some of the what you can't see stuff can cost you a fortune and can be bad as well.

Quote from @Jack Schwartz:

Quote from @Kristine Ann:

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place.  

It’s challenging to understand how someone could allow their property to be sold at a tax deed auction. Consider a scenario where a person owns a house valued at, for instance, $100,000, and they owe the town $40,000. It’s unlikely that they would let go their property, allowing a debt of $50,000 to eliminate an asset worth $100,000. If they do decide to let it go, it usually indicates that something significant is happening. Perhaps the house isn’t even worth $50,000. So, as Kristine pointed out, it’s crucial that people are made aware of the risks involved. Many of the houses I’ve seen at tax deed auctions are in such a state that they need to be demolished. It’s a complex situation that requires careful consideration.

There are many many reasons why someone lets their house go to tax sale. I share a list below. The most common reasons I come across are: the owner died, can't find heirs. The owners died, lots of heirs and no one wants to put up money for repairs, taxes etc when they only own a small %. They have a mortgage and are upside down so they walk away.  The house needs lots of repairs and has a lot of zone violations, might be up for demo, so they walk away.   I love when I find a property with a big mortgage, the home owner walks away voluntarily and I get the mortgage removed with my quiet title suit. 

 As far as the video. The only assumption I make is that the house will need to be gutted. I actually prefer if they were already gutted (less work and expensive for me).  Rarely are they in decent condition. Anything more than a gut job is a plus in my book, I assume the worst.  (I wont buy a tax lien unless the land value exceeds the cost of demo.) You have to be prepared for the worst, worst case scenario, the house has to be demolished. 

Quote from @Jay Hinrichs:

Originally posted by @John Underwood:

I have cleared a tax deed on my own without an attorney or Quiet Title.

I keep most of my properties as rentals.

I am in the middle of 2 Quiet Titles right now for houses I couldn't readily clear on my own.

I have been doing this for over 10 years and have successfully converted tax deed properties into rentals. I don't need title insurance to rent the house I now own.

I primarily buy houses. That way I don't have to worry that something would prohibit me from having a house on the property, it is already there and I own it once the deed is titled to my LLC.

There will not be an ingress running through the middle of my house.

I also do not have to foreclose on  tax deed or tax lien. If property is not redeemed I get a deed in the mail.

REally like this play for assets that are inexpensive.. and your paying cash.. risk is minimal to nill and as long as your play is simply rent and keep very long term.. its a genius move.. most folks are so worried that you have little to no competition..  !!!!

It's great if you have the capital to work with. If you buy a house that is worth 100K for 50K and then put 20K into it, that's a great deal but that is 70K of capital you are tying up. Most people don't have that kind of money to start with. If they did they would be done after one property.  
It's just very capital intensive to go forward with this strategy. You need to have lots of money at least till you get 5-10 rentals then you can collect enough from rent to refill the coffers to fund your next purchase at the next tax sale etc. 

Quote from @Elaine E.:

@John Underwood The case that set precedence for this tax lien change was not in Colorado - my concern is that other states will also follow suit, and they may, like Colorado, do so without reasonable notice or consideration to premiums paid or impact on investors who invested before the change.  That said, other states don't require premiums so investors' risk may vary. 

Colorado seems to be an outlier, look what they did with trying to take Trump off the ballot. I don't know what is up with that state but they seem like they want to make drastic changes to law. I am not aware of any other states that have made changes because of that happened in MN.   Which MN is a deed sale state, totally different from liens.  No lien sale state should be making changes because of the MN case, but Colorado decided to anyway.

Some states do have premium bidding, Mississippi is one just off the top of my head. 

Quote from @John Underwood:

@Will Sifert

There are really good states and not so good states to do this.

Everyone needs to do their research. The state you live in may not be a good place for this.

You can always travel to states that do have good laws surrounding investor purchased tax liens.

To me, anything over a 12 month redemption period is not good

I am fine with 3 year redemption periods for tax liens. SC is essentially a one year redeemable deed state.  Colorado wasn't a bad state until they decided to change the entire process right in the middle of the game. Now it's a terrible state if you are looking to acquire property.

Quote from @Ashish D.:

I've read through hundreds of post on this website about Tax Liens and Tax Deeds, and almost every single one is discouraging investing into it stating myriad of different problems and nuances. However, when you search the internet, you find hundreds of posts and documentation talking about investors being so successful with it, big ones and small. I've spoken to few investors who have made tens of properties using it. Why are posts and documentation on this website particularly advising against them?

I am curious where you are finding all of the posts and websites on the internet about tax sale investing. If you can't post the link here send me a message and I will check it out for you. Other than facebook groups, which I run a couple, there isn't many other places that you can post / discuss tax sale investing.  The documentation you are finding, websites, videos etc... are all there to sell you something, of course they are going to hype it up and down play how difficult it is.