Anyone has experience investing in Tax Deeds?

[hqr]

Texas real estate is getting more difficult to get good deals because of investors fighting for the same deals.

I have been trying to find creative ways to get deals, one of which I'm considering purchasing properties through tax deeds... any advise?

Thanks!

 

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[Vigilante]

Some time within the next month or so, I hope to do a deep dive on this subject. I took a class on it a few years ago, so I have a bunch of surface knowledge but need to get up to date on current state by state legislation on liens vs. deeds. If you happen to do some research on this, please post your findings here.

 

[Runum]

I took a class from the Roddy guys in DFW a couple of years ago. It was good stuff. I went in another direction and didn't use the knowledge. They know the Texas laws and will also provide you with underlying "off the record" knowledge.

Roddy Real Estate Investing Academy | - your Texas Real Estate Investing Advisors

 

[hqr]

Great lead! Thanks!

 

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[AnneC]

I've purchased tax liens a few times in the past. Rules vary state to state and even county to county.

Here, in Colorado, most counties hold either an auction or a round-robin rate buy down. Denver actually uses an online bidding system, powered by a company called RealAuction, who services other states and counties. I've also invested in Wyoming, where they use a lottery system and a fixed rate of return. Some counties in Wyoming will take a number out of rotation once it's called, so that everyone gets a chance at buying one lien before someone has two. But others are just completely random, so you might get a bunch of liens and the guy next to you walks away with none. In Wyoming, I have seen companies recruit day laborers and bums off the street to get extra lottery numbers.

I wouldn't consider tax lien investing a Fastlane strategy, but it's a good option for parking some extra cash. The downsides are that they usually get paid off (you very rarely end up with the property and if you do, there's usually a reason for it), and you have no control as to when the lien gets paid back. It could very well be redeemed the next day, in which case, you might even lose money if the bidding gets too crazy.

These days, most counties post their rules online. A quick Google search should pull up all the information you need. Good luck!