All Forum Posts by: Vik V.

Interesting to see these newer posts, and see that the crazy bidders are still out there en masse.  I stopped doing tax liens a few years ago because of this.  Clear Creek county used to be such a good one at one time, but you won't even come close to winning on a reasonable bid now, it looks like.  I used to think that the wild bidders would learn their lesson by the next year, maybe they do, but they just seem to be replaced each year with a new batch of wild bidders! 

As for the premium on these in CO - the county just keeps it!  They make a nice haul too, for nothing.

I think you guys are both right about having very limited returns annually, just from leasing the land to local farmers. The gross cash yield on their offerings seems to be around 3-4%. with net cash yield being a percentage point or so lower. I think they're able to use economies of scale in some areas, and have developed relationships to acquire the land at reasonable enough prices. But their estimated IRR seems to include land appreciation over time, with an estimated hold period of 5-10 years, and an eventual sale when they feel the time is right.

It's somewhat speculative for sure, and farmland prices would have to continue to appreciate for it to be a good investment.  Plus the underlying crop would have to continue to fare well price-wise.  But other than that, I haven't seen any major red flags with it.  They're very responsive, and I think just raised a Series B round of additional funding, plus, their offerings get subscribed to very quickly, most of them I've seen fill up the same day.  Gonna keep an eye on it for awhile, before investing, but it might be worth getting into a few of the offerings at some point....

Anyone have any experience investing on the AcreTrader platform?  It looks quite promising, being able to invest in farmland, and reap returns on both the income from it, as well as potential appreciation.  I think the only thing for me might be the long term holding period, but it looks like they're creating a secondary market for shares on their platform.  Would appreciate any feedback from anyone that has used it.  Gonna separate the words acre trader in case someone is searching for it here. Thanks!

Just saw this, and the season is over now, but, this business has WAY more competition now than even a few years ago.  You're right, most auctions are online now too.  There are more bidders, and, most of these parcels are getting bid up to what I'd consider crazy premiums.  (Most of these redeem the first year, so, please take this into account). 

The only other way someone can come back, to my knowledge, after a treasurer's deed has been issued, is if they can prove they were actively serving in the military at the time the taxes became delinquent.  A quiet title can clear this claim though.  

As for mineral rights, yes, if you're doing land parcels in CO, oftentimes, the mineral rights are separate, and, there can be tax liens on just the mineral rights too.  Just part of the game!  Also, another thing I see with land parcels is that bidders don't take into account topography - especially in the mountainous counties - some parcels look great on a map, but, in real life, they're more like a steep drop-off, and not accessible at all! 

Best wishes, hope you found some gems this year!

The tax lien business is really a neat one, if you have the patience for it.  There's a thread with some good info here:  https://www.biggerpockets.com/...

As for your question about some of the pitfalls, it comes down to research.  You can do a GIS map search in most CO counties, then further searches on the county recorder's site on a particular parcel.  There are junk parcels for sure, for one reason or another, that you just wouldn't want to own.  And there are some potentially valuable ones, if you're willing to do the tedious work of going through the delinquent parcels list, and finding them.  Those tend to get bid up at auction, especially in the more populated counties.  Keep in mind though, if you're looking to eventually acquire the property, that most will get redeemed, and that's the end of the story.  You'll hopefully make enough interest on those to cover the premium you paid.

Also, keep in mind, it's about 4 years until you can actually get a Treasurer's Deed in your hand for a parcel.  It'll have a bit of a cloud on its title, for 9 more years, for merchantability, but you can erase this with a quiet title action.  (Or just sell it with a quitclaim deed) All of this takes time, and you just have to budget for it all.  But in the counties that still do live auctions, it's the same people, year after year, so, something keeps us coming back :-)

Good luck!

My experience with it is that each county has a different "personality", both in the bidding process, how much competition exists, the premium someone's willing to pay (if the county does premium bids, and let's you choose the parcel), whether it's online or in-person, and just the demand on a particular parcel too.  From talking to very seasoned TL investors at some of the in-person auctions, it seems that this fluctutates too, based on the economy.  The premiums I've paid vary substantially, from next to nothing, to 50% or more on the tiny parcels, but lets say, average 8-10% or so.

So this means you'll likely lose a little money if it gets redeemed the first year (many do).  And yes, few actually go to Treasurer's Deed, but, particular parcels have a higher likelihood, if you're willing to do some homework.  Once you get a Treasurer's Deed, most title companies consider it a cloud, and won't give title insurance for merchantability.  So, you either have to quitclaim it to someone (and disclose this), hold on to it for 9 years, and the cloud disappears by statute, or do a quiet title action on it to clear it.  

It's a numbers game, and a game of patience.  But worth it if you have the personality for it.

Hope this helps, also, hope I'm not too late, I know most of the auctions are already done this season, but there are 2 more counties on my list this month.  Good luck!