All Forum Posts by: Roy Oliphant

@Austin De Witt

Great idea!  Well except for those pesky zoning rules and deed restrictions and neighborhood covenants and... 

Don't give up on looking for alternatives.  Who knows, one day we may restore private property rights to the point where the person that pays for the property gets to decide how it is used.

@Steven Payne

First, congrats on taking the first steps.  May I ask what counties you bought in?  We usually initiate contact with the resident and/or owner ASAP.  Certain rights are dependant on the deed but you did actually purchase the property at the auction and are now the owner.  Insurance should be initiated as soon as you can get it in place. 

I suggest you determine the condition of the property and intent of the previous owner before you start collecting rent.  Remember, once you intend to rent you are responsible for ensuring the property is compliant with the rent codes.  There may be issues in the properties that will require you to spend significant money or risk fines. 

Feel free to PM me for any specific questions. 

Do any of these products have an Activity Planner / Tracker?  For example, to automatically schedule walkthrough every six months or to track the steps for move-out and make-ready? 

@Tim Ball

I suggest you post a couple of specific examples and I'm sure you will have a great response from folks ready, and able, to buy.

@Cory Damon

Thanks for the kind words.  This does appear to be a provision without time limit but it does contain the requirement that the to-be contestor pays the taxes to cause the contestability to remain open.  If the tax deed purchaser is diligent about paying the taxes as soon as they are due, this eliminates that possibility.  But I do hope an attorney will jump in to clarify/confirm.

@Roshell Miller

Welcome.  Our experience is it takes 2-4 months at least.  If someone is in front of your application it can take even longer.  ADOR said that some people have received letters one year after applying due to the number of people in front of them and the time it takes to get the information from the counties each time they move to the next person on the list.

Do take a look at Denise's blogs.  She is an expert in the Alabama tax liens.

Good hunting.  And keep me in mind if you ever get too may opportunities in Alabama.

@Keith Goodwine

Environmental is the issue here for sure.  Remember that under EPA regulations, any person or organization that has EVER had any ownership or possession of the property may be held totally responsible for any clean-up costs.  There are lots of potential contaminants from a junk yard.  as @Jeffrey H. said: If you can't do the due diligence on this you should stay far away.

@Jodi Gauthier

I am not a lawyer but it appears to me that 209.011 of the Texas Property Code deals with redemption of an HOA foreclosure. As I read it, it says the period is 180 days and the interest rate (not penalty rate) is 10% annual unless the HOA documents say different. Hope someone corrects this if I missed something.

@Thomas Rutkowski

and everyone else:

Please remember that using a third party does NOT mean you do not need to do your own due diligence.  We buy tax liens and deeds from people when they no longer fit their investment strategy.  A number of the folks we have talked to bought them on recommendation or from a listing group.   While liens are a complex strategy and investment goals are different or changing, it doesn't hide the fact that someone relied on others to do the due diligence and wound up with a bunch of liens on properties (including vacant lots) in East St. Louis.  They wont be redeemed and between the high taxes, high foreclosure costs and low values, winding up with the properties has no financial benefit.  Anyone who claims they do any prior due diligence and still sold these liens as investable is either ignorant or nefarious.

@John C

I assume from your question that the seller acquired the property through a tax sale. Tax sales usually clear most commercial liens but very few government liens.  From IRS to city mowing, if the lien was originated by a government entity and it not specifically ad valorem it will probably survive the tax sale.

Due diligence is ALWAYS required.  Whether you obtain a title commitment or search the property records yourself should depend on your experience and risk tolerance.  But one or the other needs to be done or you are gambling not investing.

Also, recommend you understand the Iowa code as there may be an open redemption period.