All Forum Posts by: Tom Yung

@Dexter Lewis Sr TX is a redeemable state, with interest 25% for the first year & additional 25% for year two.

redemption is 6 months for non owner occupied & farm land.Other wise is 2 years.

- Check the county rules, some counties forbids you to bid if you are not current with your own tax.

- watch out for the starting bid, that may be few years back tax. So you have to bring the tax current.

I will say 50% of the time when you won at TX tax auction, you will end up with a property. So be prepared to deal with the property.

- You have possession after you won, so if there are tenants, you can collect rent & wait for the owner to redeem.

-You are allowed to make basic repairs & maintenance to the property, you can recover all these expenses when owner redeems.

I, myself likes tax auction. If the auction is at your back yard, You know the condition of the property. You can end up with a home run.

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@Joseph Brown

Will you be better off to go to the bank & see if the bank will short sell to you,

at the same time, finance it through them. So it will be WIN, Win , Win.for the bank,your friend & you.

@Eric Hamilton

As an out of country(out of state) myself. I do agreed with @Bill S that it takes more time, money & energy to do deals. You really have to depend & manage your ground crew(team) in the area. A weak link will cause you big headaches & financial losses.

But on the same token, It is workable. Sometimes we just have to go where the opportunities are. I invested out of state in my homeland( Canada) as well.

@Teresa Keith

GA is a Tax Deed state with a one year redemption.

During year one you will get a tax deed , but with no right to the property.

the property owner has the right to redeem the property within the first year. You will get 20% during this one year period. It's a penalty(even it redeems after 1 day, the shortest I experienced is 3 days).

After one year, you have the right to barring the owner for the right of redemption. The owner still has the right to redeem it within this 45 days, but the penalty goes up to 30%( additional 10% for year 2).

After the barring of the right of redemption, you are title to the property.

You can rent it out or for your own use.

But If you need to sell the property to a owner occupant that needs financing, then you need to clear title in order for the new owner to get title insurance.

It can be a very profitable business if the tax deed amount that you paid has a Hugh spread to the market value of the property. But watch out for the condition of the property.

@Devin E.

1) ask yourself what is the purpose of the purchase. for investment,

vacation home, or other purpose & how long of holding.

2) after you find out your purpose, find the location.

3) If investment, decide whether you are hands on person or just want passive income.

4) type of building, residential or commercial. then contact the right type of agent. A lot of residential agent has no clue what commercial is.

5) educate yourself , know what kind of questions to ask for your type of investment. Know the real estate language, like REIT( real estate investment trust) cap rate, REO( real estate owned). whatever applies to your investment goal.

6) make connections to local investors & professionals like agents, trades people...

BP is a good start, spend some time, you will not regret it. There are a lot of helpful people on here. I am learning from everybody too.

@Annunciata R.

I admire your principle.

I have run 3 small business myself in the last 35 years. One with partner.

I will recommend you to wear 2 hats in this,

One as a landlord. rent the space at a discount to the new venture.

The other as a company with 2 partners( I will use a LLC to limit your personal liabilities). Like you said, you can always hire managers to run, so your actual involvement is not as much.

@david Holland, I think you are right on. You need the traffic to support a venture like that. I have seem quite a few franchise juice bar doing very well close to university. If I am not wrong, the profit margin is probably quite high; but you need the volume to support it.

@Kimberly T.

As a out of country investor myself.

Everytime I go into a new market

I assembly my power team members first, home inspectors, contractors, real estate agents, property manager.

I usually work with 2 RE agents for 2 different areas, make offers.

wait till offer accepted & then travel down for my due diligence. While I am there inspecting the property(usually first thing in the morning), I will meet with my team, RE agent, Inspector & general contractor at the same time.

Then use the same afternoon & see more listings with the same agent.

I repeat the same process with the second agent on the second day.

on the third day , I will visit the property manager, insurance agent & open a new bank account if necessary.

The whole secret is to book the hotel close to the property you have interest on, so you can check out the area in the early morning, after your viewing with the agents in the afternoon, drive around after dark & see the neighborhood. I usually spent 3 days in a new market & then I can close at home after.

@Tylor B.

All ICI ,industrial, commercial & investment listings goes by class A,B, c.

Find out the type of the building, You will find out the market rent, cap rate very quickly from the commercial broker sites. They usually give out monthly, quarterly report on the local market.

So first, find out the class of the building.

@Shawn Sparks

There will be more millionaires born doing RE this time around.

America has turned into a nation of renters due to the events that happened in 2007-2008. Once when most clean up their credit & the economy bounces back. This renter pool will turn into home owners again.

This is just the beginning of change of wealth.

@Austin Hajjar

an out of town investor myself, I will strongly suggest you have a good PM.

late rents, repairs & maintenance all will pop up occasionally.

It is a ton of work comparing whatever they are making(6%,8% or 10%). Ask them questions of their service & responding time to both you & your tenants when issue arises.

To me, It is just not an issue of Managing the day to day Four tenant issue. It is the issue of how to manage your PM to manage your tenants.