All Forum Posts by: Ronald Stanley

Hey family,

I attended my first tax deed auction in Fulton County, GA on Tuesday. Here are my observations. Majority of what was sold was land. Most of the land ended up selling for $5k -$25k (shocking). There were 10 single-family homes on the original tax sale list and on the day of the auction there was only one left. The winning bid on the single-family home ended up going for 55% of the value of the home ($101,000). Please see my questions below.

1. When do you begin to do your research on the properties that you want (mostly driving and intensive research)? 30 days before the auction or the weekend of the auction? In other words, do you complete your general research as soon as you get the tax sale list and reserve lien searches and onsite inspections for the day before the auction?

2. Secondly, if you had 25k to invest, what would be your strategy? Go after land first? Attend 5 auctions a month? My end goal is to acquire enough properties to have 5 to 8k of cash flow each month so I can quit my job.

I am trying to develop a strategy to approach this. Any guidance will be greatly appreciated.

@Dmitriy Fomichenko. I sure will. Thanks

@John Underwood Thanks John

@Dmitriy Fomichenko That makes sense. Thanks Dmitriy.

@Bill Brandt

Thanks Bill. That makes a lot more sense the way you explained it. When I started researching using a self-directed IRA I realized that every time I wanted to make a decision I needed to consult a custodian and there were so many different ways that a transition could be considered "prohibited". The huge consequences that come along with it almost steals the benefit. I suppose there are some high-powered CPAs that can find loopholes to everything, but for a small chipmunk like me, I'd rather choose the easier route. LOL

@Michael Plaks

That settles it. Thanks again

@Bill Brandt

Wow. Thanks for clarifying Bill. It sounds like there's more cons then pros with a self-directed IRA. I wonder why bigger pockets and everybody pushes this product all the time if there are all those downsides.

@Dmitriy Fomichenko

Thanks for clarifying that. So in a nutshell, you should always buy a house with an IRA so you can avoid capital gains taxes. And then you can take a distribution out from the IRA and pay income taxes and and an early penalty versus paying capital gains taxes correct? Dimitriy, would you have time for a quick call later on today? Or sometime soon. 

@Michael Plaks

No biggie :) Thanks for the advice

Hey Kenda, I see you posted this 6 years ago. Are you still investing in tax leins. If so, would you mind sharing your experience on a short call?