All Forum Posts by: Roy Oliphant

 Hi Peter, Thanks for your input.  I wasn't able to make sense of this thread until you mentioned "non-performing".  That put the above value discussion in the proper context.

I'm sorry that was your experience.  Mine is different and as there seems to significant building in most of the areas I track, I surmise others agree with me so it must be true to some extent. Wish I had met you when you were giving it away.  Fact check: "not true at all"  subjectively false.

Well the OP's question mentioned Tax Liens and Redeemable Deeds in Texas.  While it is mostly understood that Texas is a Tax Deed state and does not sell Tax Liens, there are special regulated loan companies that make loans for people to pay the property taxes.  Those companies are essentially assuming the governments place in the tax judgement and thus are "investing in tax liens in Texas".  They do not get an immediate right of possession or ownership as a deed purchaser would.  

The minimum funding requirement and other regulations make this a limited entry business not open to most investors.   So while it is incorrect to say there are no tax liens in Texas, it is almost as incorrect to say you can invest in tax liens in Texas as most people cannot.

Not sure I would agree the 'new buyer' would have the exposure.  As @Ned Carey mentioned, buyers usually want a title policy.  I doubt there would be one issued without an exception for the IRS and my buyers would expect me to cover that potential loss or not even close until the the redemption period expires as any improvements they would make would be at risk as well.  We do a lot of deals with redemption periods and generally calculate the holding costs for redemption period as part of the deal.  It is pretty difficult to flip a property until that period expires.

I'm not a lawyer but the research I have done says the IRS can redeem the property by paying the price paid at the auction plus 6%.  Since $50K would be more than 6% of $200K (your example) the difference would be an exposure for the seller.  If it were me, I would not plan on selling until the IRS redemption period has expired or until you have a release from the IRS.  You can ask for that and may not have to wait the entire period.

In Texas, to invest in Tax Liens is very complicated and so highly regulated it requires a specialized loan company.  Tax Deeds are sold at the monthly Sherriff's auctions (usually) on the first Tuesday of each month.  Arnie Abramson at TXTAXSALES.COM has the most experience of anyone I have seen.  He has a couple of ways to help people get involved.

Dang, Henry!  You're giving the shop away here.  Seriously, this is a great approach.  This also works outside of military areas but you want to own the RV's even less.  

The real issue is there is almost no way for someone to have a safe, clean, dry place to eat, sleep and keep some personal things for under $800 per month.  Permanent RV, Cabins (tiny-houses that aren't built to mansion finish-outs), container homes, manufactured housing, and other alternative housing is the only way to keep these folks housed.    Add in small town land prices and you can build a win-win investment strategy.

Love this view!  

Small town East Texas is still a good place.  Most counties expecting significant population growth long term and housing stock is already tight.  Fiber is being installed all over the place and the aquifers and lakes are holding up.  We are not the first to see this as there is building everywhere but the opportunities abound.

Sometimes the rules allow for SOME repairs based on the intended use.  It is very much an "it depends" situation.  If the property is owner occupied, the redemption time may be affected.  Also, elderly have certain rights for tax deferral in Texas that may affect when a property is sold.  Don't hesitate to reach out if you would like to discuss specifics.

Hi Randi,

Texas is a Tax Deed state so Tax Liens are not available here.  Also, Redemptions in Texas are rare and should not be the primary focus of investing.  Texas law does allow for recovering limited expenditures in addition to the amount paid at the auction, additional taxes paid and the Redemption Penalty.  These additional expenditures are limited by statute and MAY include repairs but do not include "upgrades".  Determining whether something is a repair or an upgrade can be very nuanced and goes beyond a general answer as it will depend on the specific situation and often will need a lawyer's input. (I am not one and thus can only discuss my experience.)

If you have a specific situation, please let me know the details and I can compare it to my experiences.