I have learned a little about buying houses through paying the unpaid taxes, but do not know how this works in Texas.
I live in San Antonio. Do you have any resources/ suggestions/ comments about this type of transactions in Texas/ Bexar county?
I want to start investing, but my capital is limited and this seems the best way to start growing my capital. Any comments would be most welcome.
Thanks,
Mike
Mike,
Thanks for joining us. This is going up with the February update in about 10 days or so, but I guess you can have a sneak peek since I’ve already done it (just not announced yet).
http://www.reiclub.com/art/find.php?who=Darius%20Barazandeh
http://www.reiclub.com/products/19
I haven’t personally pursued this route because the few times I’ve gone to the Travis courthouse to watch, it’s a mad frenzy for the properties that actually have improvements. My uneducated guess is that there’s probably a way to make money on the lots, which seem to me the majority of the sales, but I’ve never taken the time to figure it out. Also, I assume less populated counties might present some opportunities as well.
Thanks for the quick response. I am very new to this, and have limited capital, so this seems the only way to start to grow the capital enough to invest in other vehicles.
The articles and the course are by Darius Barazandeh. Do you know him? How reliable would you say his training course would be? I have seen many training courses that are priced very reasonable, but that is because it is an introduction and requires a much more expensive course to actually be useful. This doesn’t sound like one of those, but I always try to check beforre I act.
Thanks again. This site is a wealth of information and I appreciate the time you have invested to create this resource for the rest of us.
Mike
Mike,
I’ve not gone through the course myself yet. I know his materials have received high ratings from those who have purchased it.
No, I don’t personally know Darius; just occasional correspondence.
You might try emailing or private messaging Stacy Kellams. I think he has the course and has gone through it. Or, you could purchase it and if you don’t think it’s worth it, just return it within 30 days per…
http://www.reiclub.com/info.php?sec=Guarantee
As far as I know, Darius doesn’t offer a more expensive course so I would imagine this one is nuts and bolts info.
hope that helps…
Mike,
I have Darius Barazandeh’s course and I would highly recommend buying it. It’s not an introductory course. It’s the real deal with everything you need to know to get started. :thumbsup
I think I will be ordering the course very soon. Thanks for the recomendation. I am going through the motions this month. i.e. locating a few interesting properties and doing all the research, etc. and plan to attend the February auction. That will give me a firm idea how it works. Then the course will snap into place and I will make a first purchase shortly after that.
I am going slow because I have never done this and cannot afford to lose the capital because I rushed or was sloppy.
Any other advice will be gleefully appreciated and accepted.
Thanks for a wonderful web resource!!
Mike Piper
Mike,
Sounds like your on the right track. You’ll learn a lot by attending the sale.
You won’t be disappointed with the course. The only other advice I have is to do your homework, and check your numbers. Not to the point that you have “paralysis of analysis”, but know what you’re doing and what you’re getting yourself into.
:thumbsup
Good luck,
Stacy
Here’s something funny. (I am also hoping someone might bne able to add some info on it.)
The Business Condo that my children’s Karate studio is in is listed, but under an OLD account. The new account shows paid in full, but I was told by a clerk that the old account would still mean whoever paid would own it.
The strip building is 9 total business condos, broken up between a karate studio and a day care. If I paid for the 4 that make up the karate studio, I would become his landlord! :banana (Well, maybe? :roll: )
Has anyone run into this?
If I were to pay for 1 of the 4 for the studio, would the current owner have to split 1/4 of the monthly rent with me until they repay the taxes plus 25%?
Mike,
Since it’s an investment property, the right of redemption should be 6 months. Please note I have very little experience with tax sales so please check this with a more knowledgeable source.
My understanding is that you are merely entitled to 25% on your investment if the property is redeemed. I would assume you are not entitled to anything else until you actually took ownership if it went that far.
Hopefully, someone more experienced will chime in…
In Texas they do a judicial tax forclosure. You get a sheriffs deed. That gives you right of possession. There is the 6 mo redemption on non-homestead and 2 year on non homestead. Just because there was not a homestead exemption does not mean it was not their homestead. Title insurance if you want to sell is another story.
They do not sell tax certificates in Texas. That does not mean you can not buy them with the permission of the owner. If the course has that information in it then he knows the subject.
Mike,
Thanks for the interest in my product, Texas Houses for Pennies. Let me give you a bit on my background and information on my course. The information contained within the course was originally collected as part of an internal review of the delinquent tax collection processes for one of the largest counties in Texas. I am a former consultant for Deloitte & Touche, LLP a world class Big 5 consulting firm. I was in charge of revising the delinquent tax collection procedures for the Harris County, Texas for Mr. Paul Bettencourt, the tax assessor collector.
In addition to learning the processes inside and out, I am an avid tax sale investor. The end result is that the materials contain information verified from tax collection attorneys, tax office personnel and professional tax sale investors. The course is currently the top rated tax sale resource according to the Real Estate Investment Depot.
The course is a fully detailed course and workbook series which you will see goes far beyond what most courses cover. It shows you in step-by-step detail how to buy houses and land for a mere fraction of market value. This product is exceptionally detailed and uses numerous examples to ensure that you fully understand the material. It will also clearly tell you want to avoid!
There are few products which contains as much detail and ‘insider’ knowledge as Texas Houses for Pennies. If you are interested in investing in high yield tax sales the right way while avoiding the risk you should review my product.
I also want to let you that I will stand by you as a purchaser as you go through this process. What this means is that I will help you via email consulting for FREE. I care about your success and if you find the product is not what you are looking for just let me or the good folks at texasrealestateclub.com (within the proper timeline) and you will recieve a refund.
If you have any questions just email me at taxenterprises@yahoo.com.
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In Texas, there are two redemption periods:
One for homestead and agricultural exemptions and one for non homestead non-agricultural exempt property. Keep in mind that one can occupy a property in Texas and call it thier homestead without filing a homestead exemption on the property. Texas is a state that heavily favors the rights of the homestead owner. Perhaps thats why its called the “debtor’s paradise.” In summary: For non-homestead, non-agricultural exempt the redemption period is 25% and runs for 6 months, while for homestead and agricultural exempt property the period is 25% the first year and 50% the second year.
I also want to respond to a comment regarding the tax certificate and tax deed distinctions. Texas is tax deed state. This means that when you purchase a property at auction you are given a tax deed not a tax certificate. The difference is that the certificate must be ‘foreclosed out’ so to speak at the end of the redemption period. The tax deed is good as a valid deed, representing an ownership interest and need not be later ‘foreclosed out’ or presented to the court registry. The deed however is qualified with a right of redemption in favor of the original owner. When the redemption period passes the owner will have a deed absolute (meaning it does not have the qualified right of redemption attached to it).
Regarding the purchase of tax certificates from the original owner, this is not a correct statement. One may purchase the original owner’s right of redemption since it is a non-possessory property interest. However this is not accurately characterized as a certificate, but merely the purchase of the owner’s statutory right to redeem the property. It is much more of an equitable interest in the property than a contract right and is not a certificate but, as mentioned earlier, the purchase of the equitable interest represented by contract.
Hope this helps!
In the Dallas area there is even a website that provides a complete listing with pictures. It is called www.dfwsheriffsale.com