All Forum Posts by: Ty Hines

Dan you get my vote also, you can guarantee that rehab cost will exceed your estimates. Another good point that was made is when it comes to truly finding some great deals for wholesaling you have to be prepared to do some real work.

I would recommend trying to find some great deals and rehab the really really great ones yourself and try to wholesale the others that way you dont have all your eggs in one basket. Thats currently my strategy.

"So I think as long as you are pushing new bounderies, fear never truly subsides. You just learn to act in spite of it.....

well said Summerhomes

Rich, good article one to be shared.
This statement says it all:

"Honestly," he said of himself and his partners, "we weren't that experienced in business, and we weren't that experienced in real estate. We were just ambitious." -Rick Koerber

I also found this very interesting :

So entranced were investors by Koerber's "Equity Mill" program that they poured at least $100 million into businesses operated under the FranklinSquires Cos. name.

Recommended reading for all. And great advice from Rich on the "RIGHT" way to wealth.

Great topic Rich, I think one reason there has been a lack of post is because most investors like myself are in the process of WORKING out of that darkest hour. Although I can say I have learned far more from my failures and setbacks than from my success. Meaning my failures and setbacks has made me take a long hard look at myself and change the way I think and the way I go about my business.

Rich I've never read your book but what do you think were the most important changes you made in your life to take you from this dark hour to were you are now?

Steve I think that is an awesome idea. Keep everyone posted on the development. Maybe you can partner with Josh and make it a sister site of Bigger Pockets. Just thinking out loud. But great idea!!!

Steve,
I did find out that if there were other outstanding liens before the sale the lien holders have the right to replace the liens on the property once the debt has been cleared. But I figured if their lien was large enough why not pay off the taxes to remain in first position? Thats what the mortgage companies do.

Steve,
Thats exactly what Im trying to accomplish. I will do a search on the "right of redemtion" and see what I can find. Thanks for the input.

Hi Shannon,
Im not sure if I made myself clear. I have a contract with the ORIGINAL owner not the investor who paid the tax bill and is waiting for the 12 month redemption period to expire. My goal is to pay the outstanding lien bill of $16,800 to the investor give the ORIGINAL owner $5k and then own the property free and clear.For a grand total of around $23k. At this time i will decide whether to wholesale to another investor or fix and retail.

Also I never mentioned making repairs on the property before I actually OWNED the property.

Another thing that I must make clear Im not new to investing but I know very little about tax liens. I saw an opportunity and wanted to take advantage of it. Maybe it will work maybe it wont. Thats why Im looking for advice from investors with experience in this area.

Steve,
Im in the process of finding all of this out. Im not sure if once the owner repays the buyer the debt plus interest whether other outstanding debts will be reattached to the property. But I do know that the property has not changed title and that the total of $14k was not just outstanding taxes.

Hello all,

The other day I ran across a property that sits in a very nice neighborhood.The house is abandoned and in need of repair. I did my research and after a few calls got in contact with the owner. He informed me that the house was sold in the tax auction back in May. In Georgia once a house is sold at the tax auction the owner has the option of regaining control of the property for up to 12 months before the title changes owners.This is done by repaying the debt to the buyer plus 20% interest.

In order to protect my interest and prevent the owner from speaking with any other investors about the property I drew up a contract that basically said that my company represents him on all matters concerning this property, and that we would receive first right of refusal when it comes to purchasing the property. He signed the contract.

The debt owned is $14,000 with interest $16,800. He wants $10k which Im thinking more around $4k-5k. In the contract I stated that I would need 10 business days to gather all information and make a final offer.
The recent comps (last 3 months) show $85k-$110k. From what I can SEE the house needs no more than about $7-$8k in repairs. I will have one of my contractors look at it once I do more research.

I spoke with someone at the tax office but they were of little help.

Any suggestions or comments would be helpful. I have been to several tax auctions but never purchased anything neither been involved with any tax auction deal.

Thanks in advance for all comments.