Where to find cheap properties?

[taxlienadvisor]

if you need to return the funds and flip the property within 90 days...GA and SC just will not work for you...sometimes a particular state will just not fit your criteria.

Here is something you can do, and I'll think you'll have some fun, see what you can find...you can call some counties in SC...they sell tax liens, and the redemption is 1 year, but here is something most do not know....

In SC (and I got this straight from a county official I called)...only 40% of properties are even bid on...and what happens to the other properties is they go into a sort of "surplus lands" category (i think this is the exact term she used)...so let us say that 11 months later, there were still some left...you can go and buy them for just the delinquent taxes, and if not redeemed with another month, you now own the property free and clear of all mortgages....now you can flip it (you own it for only 2-8% of assessed value), make what you can, and move on to the next one

you may have to calla few counties, but this sisthe way  it works

Good Luck

[robdedgar]

Awesome, I might have to look more into this.  I am assuming the bigger cities like Jax and Orlando would be great cities to start in but would have more competition?  Would you consider Jax to be an area with a decent resell value, (closer driving distance)?

I might have to go down there with a briefcase handcuffed to my wrist full of funds huh, lol.

What if the homeowner filed a bankruptcy after the purchase, any problems there?  

Boy, this discussion has stirred that little gerbil that lives in my head!!!!

[robdedgar]

if you need to return the funds and flip the property within 90 days...GA and SC just will not work for you...sometimes a particular state will just not fit your criteria.

Here is something you can do, and I'll think you'll have some fun, see what you can find...you can call some counties in SC...they sell tax liens, and the redemption is 1 year, but here is something most do not know....

In SC (and I got this straight from a county official I called)...only 40% of properties are even bid on...and what happens to the other properties is they go into a sort of "surplus lands" category (i think this is the exact term she used)...so let us say that 11 months later, there were still some left...you can go and buy them for just the delinquent taxes, and if not redeemed with another month, you now own the property free and clear of all mortgages....now you can flip it (you own it for only 2-8% of assessed value), make what you can, and move on to the next one

you may have to calla few counties, but this sisthe way  it works

Good Luck

Im on it.  Thanks!!!!!!!!!

[taxlienadvisor]

I fell you Rob,

this is kind of a very well hidden market...until several years ago, hardly anyone really knew about, only the judges, lawyers, and of course bankers...and before I answer your question let me tell you this... Bank of America was or still is the single largest purchaser of tax lien certificates in America today...so they take our money, invest it in certificates that pay 16 - 18 - 24 - all the way up to 50%...and give us back a mere 1.59%...if the banks are buying them, should you be?...Yes...anyways, all of the banks right now are running scared...they have dropped off from the sales, which is good news for you and me. less competition.

You'd be surprised where the best sales are... it is helpful if you have been to a few sales or have been in the business for a little bit...Jacksonville is a good sale with usually very little competition, although sometimes as much as 40% of the homes are not too desirable...they have sales 4 times a year (which is among the lowest amount in the state)..my countyhas them at least every other week..sometimes every week...Now Orlando, which is in Volusia County, has usually a small amount of properties with very little competition...but the sales are smaller...

If Jacksonville is good area and closer for you...that should be fine...as long as you can buy for 10-20 cents on the dollar, you can resell to some other investor or maybe a familtrying to get a great deal....the resell value in Jacksonville will probably be no more than 50-% of market value..so make sure you buy at bargain prices....dont overbid on a property, there are too many to choose from to overbid..it is just not necessary

once you have paid for it it is yours...they cannot file for bankruptcy fter the sale...although if they file before the sale, then the property by law will not go to the auction block, so nothing to worry about there...the only time bankruptcy comes into play in Fl is on tax liens because that can extend the waiting period you have to wait to get paid, and can sometimes reduce the interest rate all the way down to 6%..(this differs becuase it is up to the bankruptcy courts and judge...

It is a simple process, and the best way I know to buy distressed property...but you want to make sure you always get a copy of the county and ruiles,,,and you know the state laws for real estate

Good Luck

[taxlienadvisor]

that meant to be I feel you...not fell....sorry

[robdedgar]

So if i google Jax tax assessors office I should be able to call and find out where these sales will be and how to view properties before they are auctioned?

[taxlienadvisor]

no,

you need to google the clerk of circuit courts in Jacksonville...they handle the subsequent tax deed sales...they will have the sale location, dates, and should have the list on the website...or they will have it available to you...if the sale is not for another few months...the list might not yet be available...they will give you plenty of time to review it...at least a month in advance

you contact the county tax collector when purchasing tax lien certifiictes

now, you will end up calling the assessors office...but this will be to get assessed values and ask other questions pertaining to values....all deed sales in every county are handled by clerk of courts

[robdedgar]

Sorry if I am asking too many lazy questions.... what office should I call for South Carolina?

[taxlienadvisor]

that is OK,

I always tell people Ask, Ask, Ask, Ask...the most successful investors in this business are the ones who ask the most questions...dont hesitate to ask, you'll never know the answer if you don't ask.

What county or counties do you want the info for?

[robdedgar]

beaufort county

[JohnSchroeder]

There's a saying that says...

You can't pay too little for a bad property.

Meaning, you will find properties at 40% LTV but generally they will have
city liens, fines and other profit prevention problems.

[taxlienadvisor]

that is a good point, and definitely is associated with foreclosure sales, whcih I know less about, but I have read many posted questions with people asking how to remove the liens or can the liens be removed

the tax sale business is different...this is a county regulated sale and, and the counties have no responsibility or care about the mortgages, or fines, or other liens (except if so stated in the state laws for that state pertaining to the real estate section)...

all the county cares about is getting the funds they are owed by the current property owner...if they cant or wont pay, then someone else can step in and pay the lien, or in some states buy the property

the mortgages and other lien holders and not the first priority lien...the tax lien is always the first priority lien (unless in the case that there is an IRS lien on the prop already)...

[EnnisP]

Hey Michael,

Great information! Really enjoyed this discussion.

Do you know how these sales work in Tennessee?  If not, do you know where information can be obtained?

Thanks

[taxlienadvisor]

yes,

just go to the post I recently put up entitled...list of tax liens and deeds...

TN is redeemable deed...then you can go to post entitled....basic foundation of tax sales...and find section near the end...I explain how "redeemable deed state works"...then we can talk about TN once you have better understanding.

sound good?

[EnnisP]

Yes, thanks very much.

I looked at the one site already and will now check out the other.  In fact, I am busy researching now.  Thanks for the quick response.

Talk soon.