All Forum Posts by: Sam Bagwell

If you're a sole proprietorship, then your EIN is your SSN. Your tax situation can differ depending on whether you're looking to buy/hold/rent or flip. Out of state sellers who do not file a GA tax return get stuck when they sell real property, as the closing attorney has to hold back 3% or more of the sales proceeds for GA tax purposes. Why would you not just go ahead and set up an LLC? Most attorneys will do them in the $500-$750 range, and it can save you a lot of headache. I'd contact an attorney, not just in GA, but in the specific county where the property is located, and see if they can handle both the LLC setup as well as the closing for you. They'll also have an accountant or two they can refer you to.

Liens, if any, will show up in a good title search.  If the DOR has not filed a lien for a particular year's income taxes, then that lien would not attach to the property itself.  Property taxes are distinct from income taxes, though, and can constitute a lien, even if no lien has been filed, yet.  If you're looking at a contract on a particular property, a DOR lien is no different from a judgment lien, tax lien, or mortgage; it's simply an amount that has to be paid before the buyer gets any sales proceeds.  So, once you're under contract, if the amount of the liens is more than the amount of the purchase price, the seller wouldn't be able to convey the property, and you'd be able to terminate the contract and get your earnest money back.

I handle these cases fairly regularly.  Much will depend on the relative positions on the lease and the loan.  If you bought a foreclosure of a seller-financed loan, where the lender had originally been leasing to the tenant, then that loan would likely still be "subject to" the pre-existing lease.  In most scenarios, though, you'll have bought a foreclosure from a more traditional, institutional lender, and can go ahead and proceed.

Even though you technically need an attorney for the closing, the process can still be simpler (and often cheaper) than with a traditional closing, simply because there are fewer players, and therefore fewer people "getting their cut."  We do these for our investor clients, and they're often surprised at how much faster the process can be when they're not waiting on their buyer's loan to process through.

I have done the foreclosure (barment) as well as the quiet title action on properties in Fulton County, both on tax deeds sold by the tax commissioner as well as tax sales on behalf of Vesta/Investa/whatever other company they have.  Your attorney is smart to charge more in Fulton; I do, too.  I've seen Fulton overlap in its sales with various municipalities (city of Fairburn) comes to mind.  I much prefer to work in north-metro counties.  I never reccomend Fulton to newbies unless they're in this for the long haul, are confident in their ability to score a killer deal with plenty of margin, and have enough of a war-chest to rise out their learning curve.

My office is in Gainesville.  There aren't many organized "meetups" around here but everyone is pretty accessible.  Let me know if you're looking to connect with agents, loan officers, or what, and we can try to set up a lunch some time.

@Kevin Hurney In Georgia, you wouldn't be free and clear of anything at the time of the auction.  In Georgia, a tax deed auction conveys title SUBJECT TO A RIGHT OF REDEMPTION.  That right of redemption is vested not only in the prior owner, but to all other people/entities with a vested interest in the property at the time of the sale.  Until you foreclose (or "bar") that right of redemption, which you can't do for at least 12 months, the property is simply not yours.  Once you have barred the right of redemption (which, in GA,  requires more than just a newspaper advertisement), then you would hold clear title.  Even at that point, though, you may not be able to sell or refinance the property until you have a judge confirm your barment through a quiet title action.

Long story short; general questions beget overly broad answers.  Every state (and even some counties within states) is different.  Invest where you are (or where you know), and dig into learning the rules for that location.

@Peter Vekselman, I'm not a loan originator, but I'll be passing this along to several I know.  I've lived in Cumming my entire life.  My office is in Gainesville, but we handle real estate matters all over the north metro-Atlanta area.

If you're ever around, I'd like to learn a little bit about how you're company is set up.  Feel free to contact me directly (my email and everything are in my profile).

I'm not from Texas, but in Georgia (where we sell tax Deeds, as opposed to tax Liens), you have redemption periods, etc... to worry about.  

That being said, if you're buying the lien, then you'll need to actually foreclose on the property based on that lien, after which you should consider an eviction, or a cash-for-keys option, as suggested above.  If you're buying the deed, then you could proceed directly with the eviction/cash-for-keys.

@John C. Price, good to hear from you!  I also live in Cumming, and my office is in Gainesville.  It's always nice to see a Georgia investor who isn't in Fulton County.  I hope you find tons of great deals! Give me a shout if I can ever be of assistance (contact me directly, though.  I'm slow to respond on BP, as I don't make it on here every day.)