I have been doing a lot of research in the Tax deed investing. I live in Texas so it is a good state to do this type of investing. I will be going to my first auction next week to observe how the auction works and what the three properties I believe to be good investments actually go for.
My question is this: Will any banks lend out 10-20 thousand to get one of the tax liens? I have no debt aside from my house, and my credit is in the the high 700s.
first of all, they sell redeemable tax deeds in the state of Texas, not tax liens.
they may act like a tax lien, in the fact that there is a redemption period (6 months), but they are different.
In Texas you will bid on the property as if it were up for sale at a deed sale, but then you do have to wait 6 months to take ownership since the property owner has that 6 months allowed by the county.
I have never come across a bank lending out money to someone to go to a deed sale… you can however find hard money lenders who may want to loan you some money to make the purchase.
Even if it is redeemed, you make 25%, so you will have a nice profit after you pay off the lender.
Good Luck, and let us know what the properties go for …