All Forum Posts by: Derek Lukas

@Brian Holt, how is everything coming along on your three project homes? The tax deed auction in my area starts on Monday! Quite a few of the properties I researched have already been redeemed. Down to just a couple now, but the right of redemption period (other than the 12 month court challenge right exists after the sale) is now over. How did the process for your quit claim deed turn out?

Any other opinions? Angel Gutierrez was driving at something in a PM when he discussed step one as being in a position to control the property with an ownership position. I am struggling with what an investor can do even though they may have one of the two parcels deeded to them with the previous owner still in full control of the property and with an ownership position in the other parcel. Is this property doomed for litigation? 

Tax auction starts in 3 days!

There is a tax deed auction in my county next week that I will be participating in. A property that I am looking at has a very nice fourplex built across two distinct neighboring parcels. Each parcel has its own APN and ATN with a grant deed in the name of a sole individual. The fourplex is roughly placed across the two parcels such that each parcel contains about 50% of the improvement. One of the parcels is paid current and the other has a county lien imposed against it in the amount of the accrued back taxes and associated fees- this is the property that is up for tax sale. Interestingly enough, the county assessor's site lists the parcel that is up for sale with an improvement value roughly half that of the neighboring parcel with the same build year, but 0bd/0ba. The county assessor's site lists the property that is paid up with 8bd/4ba.

I have scoured the forums and did not find any related topics to this question, other than the issues of easement, where a property only partially encroached on the adjoining lot or building codes may have been in set-back violation. My question is- what strategies exist for the investor that may win this tax deed? Is the new owner limited to court actions, or is it best to try and settle the deal in the 4 days before the auction start with the homeowner? Perhaps they have no idea that they are in tax default? In California, the land owner has 5 years before the property goes up for public auction. I see that there is a recorded deed in 2011 on the parcel that is paid up. I am only speculating here, because I have not yet been to the recorder's office to perform the chain of title research yet, but the owner likely paid the property off in full five years ago and did not realize that they were responsible for tax payments on both parcels.

Again, what would others do with this tax sale and what would the investment strategies look like on this one?

Thank you in advance!!

@Brian Holt (hopefully you will actually get tagged. not sure quite how to work the forums just yet),

Congratulations on your very recent acquisitions! I am also doing some research to prepare for an upcoming tax deed auction coming up in February. To do the title and lien search, did you simply talk to a title company prior to attending the auction and while narrowing down your list?

Also, I am excited to learn how you made out and what kind of shape the properties are in. If you don't mind sharing the details, I would love to learn about your experience!