All Forum Posts by: Roy Oliphant

@David Polcari

As Jay mentioned above, the equity remains with the purchaser of the property as it was created by their down payment.  The seller of the property has the down payment and the proceeds from selling the note.  The new note holder has the payment stream from the note and the right to foreclose on the property should the buyer fail to comply with the note.  The equity provides some protection for the note holder that they will be able to recover their investment.   

I think the real question is no how many millennials vs hoy many boomers but how many jobs.  The nature of work is changing and there will be less of it in the future.  Millennials will have to figure out where a large house fits in with large taxes and small paychecks.  My guess is mcmansion neighborhoods are not 20 year investments.  Cheap (smaller, efficient, close, etc.) will be where the majority will have to live.

@NaDean Bowles

This type of deal can work.  I recommend you become familiar with the code for the relevant jurisdiction first.  Tax deeds and liens are very different state to state.  6 months seems like a short period to be able to expect a quiet title action to be completed but it would depend on the the specific scenario.  For example, in Texas you will not be able to get title insurance on most properties until at least 2 years after the tax sale.  Other states are different.

By knowing the rules, you can decide if the story fits the model.  Then you have to verify if the storyteller fits your model.

@Ashley Watkins

@Joe Mclain already mentioned the TaxLienLady.  She is a great source of information.  Do be sure to check on what are the holding requirements (some states require you to purchase future year liens to protect your interest) and what is the exit strategy (what happens it it does NOT redeem).  There is some secondary market for some states but, as already mentioned, you need to think of them as illiquid and long term.  Do not plan on turning them before they are ready to expire but do look at those states that have penalty rates as that can greatly improve your returns on redemption.

Tax lien or deed investing is VERY state specific.  Are you looking to primarily invest for the rate or to obtain properties?  This can make a big difference in where you want to start looking.

@Jay Hinrichs

I'm sure you do it all above board always as I am consistently impressed with your posts.  My point was simply it is a concern for that type of business model that each person should consider when weighing the opportunities.

@Sean Cole

Disclosure is of course the a requirement and best form of protection especially with a signature from the seller on a form noting same.

@Bret Allen

That, and the fact that contracts are freely assignable, makes it clear that Texas likes entrepreneurs.   It is a 'whole nuther country' and that's why we like it!

@Jay Hinrichs

Not to rehash old threads but two reasons for why not to get licensed if wholesaling is your intent:

1) the cost of maintaining the license (at least until you can qualify as an independent broker) can be pretty high, especially with a lot of brokers that allow benchwarmers to hang a license seem to think desk fees are a primary source of revenue

2) the bigger issue for me is opening yourself to professional liability issues when you use your industry knowledge to take advantage of the poor old lady who really needs to cash out of her mansion but the kids thought they were going to live there. And, since you are a licensed professional, you used insider knowledge to gain an unfair advantage leading to a treble damage lawsuit because, even as 'wild west' as Texas is, we do so want to take care of 'little old ladies' (re: homestead law preventing home equity loans of more than 80% LTV)

@Joseph Patterson

Welcome to the BP Community.  Property renovation experience should be a great help.  What are you looking to do from here?

@William Lunsford

As you have discovered, growing areas with excellent schools seem to think money is free so they keep spending on all the luxuries.  Still, <5% per year in taxes does seem somewhat excessive.  Time to quit building 12000 seat football stadiums and indoor practice fields.  Unfortunately for the investor, the local parents get most of this on the paychecks of others.  And since administrators (read politicians) like homeowners (read voters) more than investors or renters, its likely to stay that way in hot areas.  Time to find another locale and let these folks pay their own bills.

@GioVanni Gibbs

Please send me the Alabama list as well.

Thanks!