OTC Tax sale

Has anyone purchased an OTC tax deed? I’m curious to know if they are good deals in general or are these mostly the crappy parcels no one wants… Any thoughts would be helpful. Thanks…

What is this?

I have purchased property from what we call a Tax Trust here in Texas. Properties in the tax trust have been foreclosed on for back taxes and no one made the minimum bid at the tax sale.

I’ve heard them referred to as an over the counter (OTC) tax deed , where as you said, you can purchase those that weren’t bid on during the sale. Has your or anyone else’s experience been a good one, purchasing these?

Yes, we’ve come across some profitable deals buying from the tax trust. Usually the properties have serious problems. I think it is definitely worth the research.

FYI, in Texas, every county is different. In some counties the property must go back to auction.

Thanks for the info. When you say properties are you meaning lots or houses? From what I’ve been tracking, most properties (houses) have seemed to be redeemed, with undeveloped lots being struck off to the respective counties. I’m thinking of verifying lot prices with realtors in the area to have an accurate idea of value. Many of these are priced slightly below or above assessed value. Is this a good comparison or is it better to use the market value from a realtor?

I usually am looking for raw land or lots and Realtors aren’t usually very knowledgeable about lot prices. It usually depends on the area and who you are marketing too.

Sometimes there are hidden problems with lots because in the old days (25-100 years ago) developers didn’t always provide utilities or finish roads. Some “lots” may be in the middle of a pasture with no roads or utilities so if you are looking at buying vacant lots, then be sure that you can find the property before you make an offer. Also make sure that the lots are large enough for your buyers to get a septic permit if there is no public water and sewer.

Where are you located?

That is a great point. I was looking at some land in NM about a year ago and it looked like a great deal, until I found out you needed at least an acre to build because of septic permits and they were only selling .25 acre parcels at the time. I’m also looking at raw land for investment. I’m located in Northern Virginia. I don’t know if this has crossed your or anyone else’s mind, but after I put the APN number in the assessor’s database and the address comes up, I input the address into Google Earth and it gives a nice overhead picture of the parcel you’re looking at as well as the general area. I got some info from a realtor and the market value of the properties is a few thousand higher than what it would take to acquire similar parcels in the same subdivision. Sometimes they adjacent or right across the street from each other with the same lot sizes.