All Forum Posts by: Sophie Wang

You are right, if the land value is more than lien cost plus fees to foreclose plus quiet title action, it is probably safe to bid on it knowing at least all cost will be recouped. But just curious, why was it still hard to get title insurance on the property you mentioned, after you had already done the quiet title action? I thought quiet title action should have cleared the title?

Thanks for sharing your process @Will Sifert. I did not do title search before auctions, and I think I should incorporate that in my search. The counties I deal with usually have 2000+ items, and I am interested in the residential houses, so my first step is to eliminate non-residential, then look at the assessed value and eliminate the too highs ( which is more likely to redeem), and the too lows. Also in the driveby I eliminate the ones that have visible foundation issue/trees too close to house, and the ones look good. The ones have some deferred maintenance but not terribly bad seem to be in the sweet spot, they have a better chance not to be redeemed, also when you get the deed, they are not money pit to repair 

Hey guys,

I have been investing in tax liens in AZ, CO and FL, this year I am looking into Indiana, but it seems things are very different in IN and I am a bit confused. 

First, the types of the auctions. I looked at SRI and ZeusAuction, and saw multiple terms/auctions, like "certificate sale", "deed sale", "Sherriff sale", "Tax sale", "foreclosure sale". I thought Indiana is a tax lien State, then what is the "deed sale"? Also are "sheriff sale" and "foreclosure sale" the same thing, which is when the mortgage is behind? Or is "sheriff sale" for judgement?

Second, minimum bid/face amount vs the amount of taxes behind.  For example, a property in tax sale in LaPort County, the face amount to bid is $100.00, but when I looked at the county record for this property, it shows 2020 tax due 2021 is $6194.88, 2019 due is $6194.88, 2018 due is $4886.88 etc ( see the screenshots for tax and evaluation history below). How does that work?

1. 1. How can a property valued for 18k owe $6194 in tax in a year? Does the 2021 tax due include all previous years' tax behind, as in the $6194 due in 2019 include the $4886 due in 2018? Or is the $6194 for 2019 year alone?
2. 2. If someone bid $2000 for this property and won the certificate, and if the owner does not redeem in 12 months, the certificate holder forecloses and apply for the deed, then is he/she responsible for paying all the tax behind for all previous years, in this case $6194+$6194+$4886+$3775+$2363? 
   
   
   

Thanks guys! If anyone can shed some light on these questions that would be great! Appreciate it!

Sophie

Hey guys,

I attended a webinar the other day and heard the presenter mentioned Roth conversion can only be done once in a 12 month period when he answered someone's question. I was confused, I never heard of this rule nor can I find any information online saying that. All I know is there is a once per 12 months rule for in-direct rollover. I am very new to solo 401k, just want to see anyone heard of such a rule.

Thanks!

Sophie

Hey guys,

I have been buying tax liens for a few years, and recently three of them passed the redemption period and I started the foreclosure process to apply for the deed. Just try to make plan here, if I do get the deeds, and then sell the property, is it considered a capital gain or earned income for tax purposes? And if I hold the property for a while before selling it, or if I fix it up and then sell it, do these change what type of tax I would pay ( long term capital gain, short term capital gain, ordinary income)?

Thanks! I'd love to hear your opinions.

Sophie