All Forum Posts by: G.D. Haizlip

Greetings,

Darryl K,

Your question requires a more detailed answer because the rules (statutes or laws) vary from state-to-state.

Let me start with the first part of your question: Let's Say you have $100K (Available Cash/Line of Credit)- which can be used to buy properties. First, your minimum-bid is determined by the Amount of Taxes, Fees, etc. owed on the property: You could actually acquire some deals at the minimum bid price; however, in many cases bidding could increase because other Investors may also have an interest in the same property. This usually makes the bidding more competitive so the bid could exceed the minimum bid. On the other hand, if you are buying properties OTC-Over the Counter, than your bid could be only for the AMOUNT DUE IN BACK-TAXES (all other rules apply, eg., redemption periods, if any, etc.).

Next, there are some states, like Florida for example, that are considered Bid-Down states. Here, you can bid-down "on the Interest Rate" and the Investor(s) who are willing to accept that interest-rate is the winning-bidder. FYI: Florida also conducts Tax Deed Sales and OTC Sales.

Finally, with all due respect, it would be helpful if you could determine if you want to focus on a specific state/strategy.
For example, determine if you want to buy: 1) Tax Deeds with or w/o redemption periods, 2) Tax Liens/Certificates, or 3) Properties with No-Redemption Periods, or
4) just focus on a particular state/city/jurisdiction and know the rules for the type of Tax-Sales conducted there.

Your question is specific to certain states only---it is not applicable to all Tax Sales. Be Sure to Know the Rules for Each State/Sale you plan to attend. I hope this helps, but if you require more details or information, do not hesitate to follow-up.

Be Persistant.

Much Success To You As You Invest!

Greetings,

Travis, here are some more Tax Sale Tips for you regarding your question(s).

Unless, there are very few people attending the sale at the Courthouse Steps, sales are very competitive; however, here is an inside Tip: Depending on your State--you can contact local municipalities (cities, etc.) to inquire about their upcoming Tax Sales. The difference is simply that there MAYBE less competition there since most people attend the more commonly known "County Tax Sales". Regardless, expect a little competitive bidding.

Infomercial: I like to consider them an introduction to the subject matter; however, once you decide to pursue the area of interest it is important to get the truth about what interest you at best. This may take a while since it requires sifting through sometimes a great deal of information, but it will be worth your time. Note: Always review the Statutes (laws) first and foremost.

Back Taxes: Not all properties have a mortgage attached it. You can do a simple title search at the county courthouse to determine if a property has mortgages, liens, etc. (not to take the place of a complete Title Search). Also, for example, know that there are Tax Sales conducted in which you can purchase properties, subject to NO-REDEMPTION PERIOD. Property types will vary of course.

Finally, Yes Tax Sales Do Work. Some Investors are more interested in Earning Interest on their Money while others are more interested in getting their hands on a Property that they can sell right away--as some of the Infomercials suggest. In essence, it may help if you decide on a strategy that you feel or believe will ultimately help you to meet your goals: select a state(s) and concentrate on capitalizing on Tax Sales in those respective areas. There are thousands of opportunities---really.

Best Regards &
Much Success As You Invest!

Hello TouchAbove,

Re: Colorado Tax Sales

First, let me say that DanOConners' suggestion to you is right on cue: I woud only emphasize the importance of understanding the statute/rules.

Next, Colorado Overview:
64 Counties, Tax Lien Sales/Auctions, Most Sales are Held in Oct. & Nov.
Colorado is a bid-down State (Investors bid-down on the Interest rate)
3-Year Redemption Period, Some counties may offer Assignments/OTC-Over the Counter Deals

Suggestion: Read the Statute, Attend a Few Sales first and Make sure you understand the process. Tax Sales can be very, very rewarding.

Contact Me if you have any further questions, or just reply here.

Best Regards & Much Success As You Invest!
MoneyMakers,

Hello EquityNCashFlow,

There are a few items to beware of (no reflection on the Tax Deed Holder/Owner).

First, you can do a little research on your own by making sure that the owner is the actual owner of Record. The County Courthouse will have the information on file for you. There should be a Tax Deed in the records bearing the name of the Deed Purchaser/Current Owner.

Next, basically the Tax Deed Holder did not bother to Clear the Title after acquriing the property from the Tax Sale for a future sales transaction, which requires Title Insurance/Warranty Deed to transfer it to you as the new owner. This is particularly important if you are financing the property through a Bank/Credit Union; so, since you are now expressing interest in buying it, a Title Search has to been done by a reputable Title Company in order to receive a Warranty Deed. You should be able to get Title Insurance IF title clears.

Finally, I strongly encourage you to either get a Title Search Done first and make sure you keep your Closing Attorney in the loop about your every step. You may want to at least let him/her know about the deal before you lock yourself into a contract (with respect to Earnest Money).

Note: If the Tax Deed Holder/Owner had done the title search/ensured that he could get Title Insurance (Warranty Deed) a while back, then he could do a simple purchase and sale agreement/deal with you; however, at this point, you definitely want to see your Attorney-at-Law to protect your interest. Again, no reflection on the Tax Deed Holder. Let's give him some credit because he did ask you to check with your Bank first. (A Good Start)!

Best Regards & Much Success As You Invest,
MoneyMakers,

Greetings,

Re: Success Is In The Finish

Starting-Out Requires A Commitment towards Finishing Whatever You Start-Out to do - which always seems to be the ultimate challenge.

Don't let Down-Days, Discouragement, Disappointments, nor Distractions Keep You Down; Get Right-Back Up, and Stay in the Game...

Note: A Football Player Does not Score A Touchdown Everytime he touches the ball, but he believes that everytime he touches the ball he can score. Often times, although he gets hit by the defense on a number of ocassions, I noticed this amazing fact in Football: No matter how many times a player with that football gets hit, they get right back up with this undying Spirit that says - "Give Me the Ball" I want to Score A TouchDown. The moral of this story is: whether you are a male/female, you have the ball in your hands, now score. The ball may be symbolic of your plans, your goals, or your dreams. Don't Quit, and Don't Give Up until you Score that Touchdown; and when you do, Score Again, and keeping on Scoring: That's Called Winning! Every day you make progress is like getting closer to the goal-line, so keep making progress (first downs), and eventually you will Score and ScoreBig in Life!

Persistance, Perseverance, and and Positive Attitude should keep you moving. Never quit nor Give Up, even if and when you make a mistake(s). Mistakes, although costly at times, are still opportunities to get better at what you are doing; mistakes are not reasons to quit---unless you are just not at all interested in that endeavor---Nevertheless, whatever you decide to pursue----Remember: Success Is Always In the Finish!

Best Regards & Much Success As You Invest!
MoneyMakers,

Greetings,

Starting-Out Requires A Commitment towards Finishing Whatever You Start-Out to do - which always seems to be the ultimate challenge.

Don't let Down-Days, Discouragement, Disappointments, nor Distractions Keep You Down; Get Right-Back Up, and Stay in the Game...

Note: A Football Player Does not Score A Touchdown Everytime he touches the ball, but he believes that everytime he touches the ball he can score. Often times, although he gets hit by the defense on a number of ocassions, I noticed this amazing fact in Football: No matter how many times a player with that football gets hit, they get right back up with this undying Spirit that says - "Give Me the Ball" I want to Score A TouchDown. The moral of this story is: whether you are a male/female, you have the ball in your hands, now score. The ball may be symbolic of your plans, your goals, or your dreams. Don't Quit, and Don't Give Up until you Score that Touchdown; and when you do, Score Again, and keeping on Scoring: That's Called Winning! Every day you make progress is like getting closer to the goal-line, so keep making progress (first downs), and eventually you will Score and ScoreBig in Life!

Persistance, Perseverance, and and Positive Attitude should keep you moving. Never quit nor Give Up, even if and when you make a mistake(s). Mistakes, although costly at times, are still opportunities to get better at what you are doing; mistakes are not reasons to quit---unless you are just not at all interested in that endeavor---Nevertheless, whatever you decide to pursue----Remember: Success Is Always In the Finish!

Best Regards & Much Success As You Invest!
MoneyMakers,

Greetings,

There are many, many people having Great Success with Tax-Sales. Like with almost anything, the key to Tax Sales is knowing the rules and strategies to Invest with Success.

#1 Tax Sales are SAFE,
#2 (ROI) Returns are GUARANTEED, and
#3 All Tax Sales are GOVERNMENT MANDATED

Suggestion: Attend a Few Sales at the Courthouse in your neighborhood. Notice that they are offering Bank Foreclosures, and Deliquent Tax Sale Properties. No offense, just trying to help you better understand Tax Sales a bit more.

Best Regards & Much Success As you Invest!
MoneyMakers,

Greetings Realesinvest,

First, with respect to the Tax Deed Process, you may need to know that the Deed may or maynot be "Free and Clear". Check that first. For example, all Deed Sales are not Deed Sales where the properties are sold Free and Clear, some are subject to liens while others are not. It all depends on the laws governing that Tax Sale.

In any case, you can either have a title search conducted on the property prior to your purchase/bidding, or afterwards (if you are sure you are going to bid-on the property). Once you have a Deed, you can offer it "AS-IS" to another Buyer/Investor, or proceed to get title insurance, which requires a Title Search Company so you can now offer it Free and Clear, subject to the title search. However, remember there are some states in which the properties offered are absolutely sold "Free and Clear" of all liens, encumbrances, etc.

Once you have a property that is Free and Clear, the P&S process is like any other property that you place for sale or under contract.

Best Regards & Much Success As You Invest,
MoneyMakers,

Brianerby,

Here are a few more resources that may also help you:

http://www.alta.org/lti/index.cfm
http://www.titlesearch.com
http://www.learntitlesearching.com

Best Regards & Much Success As You Invest,
MoneyMakers,

Greetings JKR,

It looks like you are in the Michigan Area. Let me know if you had any success locating the property information.

Best Regards & Much Success As You Invest,
MoneyMakers,