All Forum Posts by: Roy Oliphant

My @ link doesn't work from my phone or I would link in Denise Evans on this.  Yes, in Alabama the lien purchaser does have the right to make preservation repairs and add the value of those repairs to the lien amount for redemption .  Since the process is so long, protecting the housing stock from deteriorating is a good thing.

@Sonny Sach

According to the NYC Dept of Finance, they only sell tax liens to an authorized buyer.  Seems there are only 2.  The tax liens are sold to a trust which then services the payments, repays investors and forwards any excess to the city.  So the only way to buy liens in NYC appears to be to invest in a NYCTLT .

We have several offer letters from Alabama open until June 15.  We are buying as many as we can but received more than we can handle at this time.  These are all for Tax Deed properties (lien is at least 3 years old).  Typical property is a 3-1 in a $700-$800 rent area.  Tax lien amounts vary but are generally in the $8,000 range for properties with tax appraisal values of around $50,000.  Several are vacant with potential to rent after you receive the deed (takes about 6 weeks).

You pay the lien amount up front and an additional $1500 when we deliver the deed to your name.  Please call me at 214-505-9718 or Arnie at 214-869-7188.

@Greg Carrier

Congrats on successfully working tax sales.  Where are you concentrating?

It can be profitable but does come with its own set of challenges.  Just make sure you have done everything legally required and let the sheriff or constable handle the set-out.  No sense tempting fate in an already emotional time.

Good hunting.

@Ed Tamayo

I'd like to see your notes after the auction.  That is one I'm interested in attending in the future.

@Arcinio Arauz

First thing I would do is call the county and see if they offer payment plans.  Second, there may be lenders in your area that specialize in tax loans. 

if the numbers are as you say, it wont be hard to find someone who would partner on the property and cover the taxes.

Good hunting!

@Aaron Millis

Roman already mentioned the usury issue.  Another possible pitfall is Dodd/Frank and the potential for being classified as a mortgage lender (you are intending to loan against the property).  Are you a licensed mortgage originator?

In Texas, making loans for the purpose of paying property taxes is specifically regulated.  It takes about $1MM in assets to get a license for this.  Georgia is probably different but you need to investigate.

@Kiet N.

Of course "most investors" have a specific strategy.  Some invest specifically looking for the good returns and generally low risk of redemptions.  Others focus on the higher risk, harder work and greater potential returns by looking for properties that probably will not redeem.  We understand the longer investment horizon and more difficult process of lien to deed investing. 

So long as you understand the strategy, you can make money either way. 

@Nate Hawkins

In Texas, door knocking tax delinquencies is considered tresspassing.  In Alabama, you might be considered to be collecting a debt and thus in violation of collection laws.

Just make sure you understand the local laws and regulations.

@Ashley G.

@Ned Carey usually gets it right.  However, in Alabama bankruptcy does not necessarily void the tax lien.  In Texas, bankruptcy may postpone the tax sale but will not negate that taxes are owed and eventually the property will be sold if the taxes are not paid.

Void liens are hard to detect as the county assumes they are doing things right.  @Denise Evans has a very good book that explains some of the reasons a lien may be void.  It is worth a read to get an idea of what to look out for (for example if the named tax payer is deceased and the heirs/estate is not properly notified). 

Happy investing!

We invest in properties in the Bham area and are looking for some boots on the ground support to help do the initial evaluations; property pictures, neighborhood assessment, etc.  We generally consider several properties per month and need someone who can respond to a picture request within 3 days. 

Thanks!