All Forum Posts by: Nate Hananger

I've already completed certification with TTS on two pieces of land and just got off of the phone with my title company. Although there is no redemption period in CA, there is a 1-year statutory time frame to rescind, according to Sections 3725 and 3731 of the California Revenue and Taxation Code. The likelihood is much slimmer to my understanding after TTS does their job and contacts all potential parties. Plus, if the risk was high, I wouldn't have a title company willing to insure title. And I've only had the deeds in hand for a few weeks since they arrived in the mail.  

The trickier step is often peppering those facts with enough salesmanship to persuade buyers or buyers agents who aren't as experienced with tax deed properties.

Bruce - I would be interested in learning what TTS tells you about their services and how it helps you resell before that 2 year mark title companies are quoting you, or the 6-month redemption period in Texas. If a property has a big enough margin, that juice might be worth the squeeze.   

I have heard multiple people say that hiring Tax Title Services is faster and cheaper than filing a quiet title, and also allows you to resell a tax deed property with a Grant Deed (here in California at least). 

Can anyone else testify to their success in taking that route? And if so, did the sale take place before or after the redemption period?

 To be particular, California is a Tax Deed state, not a Tax Lien state. So you are bidding on acquiring the deed vs. acquiring a lien against the property. I just saw the previous post answered this too.  

Also, I recommend using Tax Title Services. They offer services that can replace the lengthy process of filing quiet title. They offer tax title certifications and work directly with title companies willing to provide title insurance. However, that does not mean most buyers/agents/wholesalers/investors will understand the value of proof of marketable title even if you put it in front of their eyes. 

I'm looking to speak with anyone who buys residential land in Riverside county. Investors, builders, wholesalers or agents. Zoned for SFR.

Message me. 

As far as smaller tax deed deals, like say $40K or below, I've personally wholesaled it "as-is". The buyers I deal with in SoCal understand the fair trade of buying something for .50 cents on the dollar in exchange for handling their own quiet title.

Has anyone else used that method?

Say you have a line of credit for $50K spread over half a dozen credit cards. Most offer 12 months 0% for both purchases and balance transfers.

Then you have an investment opportunity that requires either a certified or cashiers check, or a wire transfer with a time sensitive due date. Personal checks, money orders, traveler's checks or credit card payments are not accepted.  

How do you consolidate the funds quickly and provide them in the form required by the seller? 

@Zee Brooke

Your response is quite similar to the support team from Overages Blueprint, as a matter of fact.

I completely agree and fully understand the process. It is bank employees I speak with that do not. This is not a hypothetical problem. I had 3 different banks reject this today alone, including one from a compliance department. I did not even tell them it was something to do in the distant future. I said I had a check in hand just to create urgency in the matter.  

Still no dice. No solid explanation from the banks. Just a vague, "We cannot help you" or "We don't handle that sort of business."

There's something very odd about a common practice like POA's being such an unknown factor to banks.

If you Google the matter of Power of Attorney and add a common bank name (Wells Fargo, Citibank, BofA, etc), you will see the others who've had even worse experiences.

So again, I hear you loud and clear. I just need at least one active bank employee on the phone for five minutes who is on the same page.  

I signed up and paid the cost of joining, but it has been a slow start. I have not closed my first deal and here is why:

The business instructs you to get a Power of Attorney so that you can cash funds payable to your client and then send them their pre-determined percentage based on papers they sign when you make contact. 

The trick has been finding a bank that understands this. Customer support has merely sent me links about law, defining a POA. Reciting law to a bank teller, or even bank managers, is like speaking a foreign language. And many banks refuse to give out their legal department phone number unless you are already a client.

Only 1 bank employee had somewhat of an idea, and mentioned the necessary business account would function SIMILAR to (but not the same as) a I.O.L.T.A. (Interest on Lawyer Trust Account), in the sense that funds owed to third parties would be held briefly in there which you would not be taxed for. 

Reports of POA problems with banks big and small are rampant. No solid solution seems to be available, based on what I've read. The general consensus suggests to be persistent. I would think with the number of businesses and individuals nationwide who use them for all sorts of reasons, banks would have a much more solid approach for this.

Today I asked customer support of Overages Blueprint to send me the name and number of at least ONE bank employee who understands this business and has successfully executed a deposit using a POA. We'll see if they send me such a simple referral. If not, I may be forced to demand a refund.

@Stephen Turner

Just an FYI - all of the things you listed are provided EXCEPT leads. I had to go find my own leads, which as many previous posts confirmed, are limited by the states that allow lists to be provided for commercial use. 

@Joel Mallo 

I'm curious which stories you're referring to about sellers coming back to legally pursue investors. But I'd recommend one simple solution - completely honest purchase agreements. It takes some tweaking but Michael Quarels uses a custom-made purchase agreement that he walks each seller through step-by-step. Among other things, the agreement flat out tells the seller that the buyer intends to resell the property for a profit. 

Negotiations are a key tool too, however I have yet to meet one seller in pre-foreclosure who wasn't suffering from some sort of denial. So the paperwork is a great way to cover your back. 

The closest thing to "passive" I've ever seen was an old colleague in Washington who was a general contractor. He'd purchase foreclosures, fix them and resell them using the funds from a select group of investors. Obviously there is risk in handing your money over to someone else though. 

Find a local veteran contractor like that who has experience in successfully flipping homes and perhaps you can piece together a similar arrangement.

As far as your areas...I'd stick to NC and TX for starters because Florida has a lot of property near the ocean so your dollar may not stretch as far, depending on where you were looking.