Re: Tax Lien Sales - Posted by Bill H
Posted by Bill H on June 13, 2006 at 21:29:20:
Bill what do you mean by buying 503 parcels that matured to 3? Are you talking tax liens?..YES the original post was about tax liens…not tax deeds.
As far as I understand, when you buy a tax deed the deal is done and you own the parcel…If you buy at the tax deed sale in TX then you get a deed SUBJECT TO the right of redemption…which can be either 6 or 24 months…so the deal is NOT always done…however if you buy in CA…it is yours when the hammer falls. NO right of redemption.
Also, do you have first hand accout of what Ron buys? Ask him he will tell you…he buys at the OK tax resales and buys only cheap property that has matured to the county. Nothing wrong with that…just not the way I chose to do business. I do not think he owns anything in OKC, Tulsa, etc…only out in the hinterlands of Frederick etc.
I have no experience in tax liens or tax deeds, but I’ve looked at the process and the listings in a couple areas. Judging from the outside, I would imagine there are deals to be had for a couple reasons:
The process is somewhat more complicated than just buying a bargain off the MLS…INDEED IT IS!!!
The tax deeds are offered infrequently (every couple years or each year) so unless you follow the process, you could easily miss the nearest tax sale…Have not found this to be the case…the government only gets $$$ from the taxes it collects and they are all strapped for $$$ so most sell at least annually…in TX it is MONTHLY.
When the tax deeds are offered, they are all lumped together in one big sale…WHERE??..doing this would limit the number of buyers and limit the bidding…does not sound pratical to me. Last year the overbid was about $450,000 and no county I know of is going to pass up that amount of $$$ easily.
So this leads me to believe that the people who do target tax deeds are usually the serious investors, not casual investors. AGAIN YOU ARE CORRECT.
Which in turn should mean less competition and better deals…Unfortunately not so…we now have LARGE financial institutions entering the game…they buy for the 18 percent interest…package them as CD’s for 4 to 5 percent and sell to their depositors…making $$$ on both ends of the deal.
And people who live in the slums still need a place to live, right? YES, BUT NOT in my SLUMS.
Tax lien or tax certificate or tax deed investing is and can be a very interesting business…be sure of which one you are investing in…learn all you can prior to putting your $$$ at risk and jump in …the water is FINE.