Hello all,
Just a quick question if any one else was wondering the same.
I did Tommy senators second tax lien and deed 2 day event and was wondering why in the most recent seminar Steve and Tommy did before X-Mas (just watched through iClub), that they now steer away from buying deeds on line (foreclosure sales). First it was a great turn around and good profit to do this, now it is stated that it is like playing with fire with Petrol soaked hands and to avoid it.
I know things change etc but it was a quick turnaround from something that was the best thing to do. I have been buying Tax liens already and have had to start foreclosing on 1 property already and have another to start soon. I think this might be more common now that the US in in its low point.
Anyhow would love to hear some other views on this
Cheers
DarrenAs per Steve's comments in '09 this whole experience of Liens and Deeds is fairly new for us Aussies. And as time goes on Steve and Tommy are finding a medium ground with the least amount of risk to inform us.
Yes Deeds sound appealing but I can see their point as these houses are being sold against the owners wishers hence the great chance that there is greater damage to the property, where as if you are doing your best to sell the property, you are going to keep it in reasonable condition.
Obviously Steve and Tommy's opinions are changing, they don't say it's a no go, but be warned if you are not on the ground inspecting the property the day of the tax deed auction, you can not rely on Google Earth. I am sure that if you are there the risk would be greatly reduced. If you listen to Tommy, Arun and Stu Silver they have all bought Deed's but live in Florida.
I be honest I am very interested in your experience on the Foreclosure process. None of the training that is hosted by PI really goes into the process, saying that this is last resort and not to worry too much about them.
Which state were they in? How many liens did you have on the property? Did you have to pay out the other Liens via the county or directly with the lien holders? What costs were incurred? Have they indicated how long before the Deed Sales if in FL? What type of properties are they? Homestead? Investment? SFR? Mobile Home?
Sorry for so many questions!
I have to agree. Buying tax deed properties is a lot riskier than tax liens. Although you have to do a fair amount of due diligence for each, tax deeds need much more and you really need to be on the ground to make the strategy happen, or have someone you trust to do the ground work. Most importantly you need to know what type of auction is taking place (there are a number of different stages and auction types) and how many liens are actually on the property besides the county taxes.
You don't want end up with a property with a mortgage and an IRS lien sitting right under the tax lien.
I have purchased properties through tax deed auctions and they are heavily contested at auction, leaving the inexperienced or the lesser cashed up investor on the outer. That being said, they are extremely profitable if you end up with a property with a good sale prospect, given the current environment. One thing is for sure and that is you will buy the property at a huge discount, leaving you a lot of room to repair, market and sell way below current value, leaving a swag of money in the property for the new buyer.
The last 2 properties I purchased realised a 100% and 180% profit in 5 months, so as you can see it is profitable. Both properties also sold for 50% of current market value after I had them repaired, but tred with caution with tax deed auctions and take heed of these guys who are promoting tax deed or tax lien investing.
Ian
http://www.theblockblog.com
Free Property Information, Tools and Resources for Property Investors with a Sense of HumourHi Petejac,
Thanks for you input, I understand that Steve and Tommy suggest this but it would have been the same situation the first time around at the training. I will still look into deeds as My wife knows a few people now around the states through her home staging business, and yes It is best to have people look at homes for you. (that you can trust)Liens I dont worry about as will chew up any profit quickly to do this. Stu and Tommy by the sounds of things still buy site unseen quite a bit, but yes do know the areas. A bit of research like in Aust. you can work out good from bad areas.
I would not travel from Adelaide to Sydney to look at a house. But yes we know our laws and how things work here.
I have got Liens in Florida, various counties, The foreclosing one I have started on I did through https://www.realtda.com/index.cfm?
They quote it all up for you and get the ball rolling. It was not to much more $$ for this. County was Polk County. I had 2 liens on this property I bought them both at the same time 2007 and 2008, I assume the county owed the others as now they are all paid out. Approx cost for me in total is only $2100 and property is assessed at $29000USD. Just tried to look up costs added to start foreclosure, but site is down I think it was around $200USD No time is given to how long it takes for it to go through, I think it is 60 days of the top of my head. House was more country on good size block with a 1994 homestead. Not to much to lose if goes all wrong.
Will keep you posted on how it went.
Thanks for ya questions and your input it is very much appreciated
Best regards
DarrenHello Ian,
Thank you so much for that. Like everything you need to scope all avenues carefully. I worry about property with a mortgage and an IRS lien sitting right under them and code violations and have not found a site to look this up as yet. Congrats on your purchases so far, that is fantastic to hear. If you have some trusted repairers, agents etc please feel free to send there info to me. would be great and yes save a lot of time too.
I am a very hands on type person with reno work (in Aust) and are fussy when I do repairs so yes I do find it hard to trust others to do the right job. Am getting better though slowly but surely.
Love to here other perspectives on all of this stuff, I like Steves and Tommys knowledge but they are in a different situation to us, (investing wise) well me anyway. So that being said if others are closer to my situation it is a good inspiration that you all post your ideas on here. It all helps us all, it is a big world with plenty for all that wish to look. I keep nothing to my self when people ask for my information and love the return from others.
Cheers
DarrenThe foreclosure process for Liens that you hold is entirely different to a property foreclosure. What you are actually doing is requesting a Tax Deed Application. This can take months or even as much as a year if the County is not pro active. Once the process is complete the lien property will come up for sale at a Tax Deed Auction and will usually be picked up by someone and you will get all of your money and interest back. If it is not purchased the property will fall to you whether you want it or not. If their is a mortgage on the property, you can pretty much bet the mortgage holder will purchase at the sale. Anyone who purchases Liens should do their due dilligence through the County website and if you don't know enough to do this then find out or don't buy.
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