Educating Myself In Tax Deeds In California. What's The Best Material?
I've found good reviews from the following books but still don't know which is the best for a beginner and but the most comprehensive.
1) John Beck's Free & Clear- $40
2) John Beck's California Tax Liens - $98
3) Taxsalelistsdotcom's Comprehensive Guide on Tax Deed and Lien Sales - $85
4) The 16% Solution - $19
From the few threads I've read in this forum, in most cases it's best to go out and actually see the property in person before bidding. How are you able to do this type of due diligence if your investing in other states?
Off-topic, but what are some of the opinions on the tax lien companies that do the purchasing for you?
TIA for the replies.
Hello LEO,
The best info for you is the State Statutes and then go to the local courthouse and find out how these are handled in your particular area. Save the money for gas. If you must spend on books, John Beck is as good as it gets for the money, the same holds true for Ted Thomas' Course. You get what you pay for.
Hope this helps. Good luck
Leo_Investor--(CA)-----------------
You don't say what you want to do. Do you want to acquire properties or do you want to get an interest rate return on your investment? And please don't say both. You have a choice. I recommend you try to do one or the other.
While the 16% solution is a good book, it is only about lien investing. California is not a tax lien state.
How do you look at properties in other states? You go to that state before the auction and you drive around and look at the properties.
Good Investing************Ron Starr*************
Leo_Investor--(CA)-----------------
You don't say what you want to do. Do you want to acquire properties or do you want to get an interest rate return on your investment? And please don't say both. You have a choice. I recommend you try to do one or the other.
While the 16% solution is a good book, it is only about lien investing. California is not a tax lien state.
How do you look at properties in other states? You go to that state before the auction and you drive around and look at the properties.
Good Investing************Ron Starr*************
In California, you get the list and you select those of interest and you go and look at them. Very important. You get copies of their legals and a map to match all at the title company or you can run them yourself. Do your research
Please.
Then show up and away you go. do not be influenced by the other bidders. just do your own thing.
There are values, but you must know what your are doing.
enjoy. Lucius
I appreciate the replies.
I would most like to try and own the properties free and clear if all possible. But I've read in other threads that the owners usually pays the taxes during the redemption period most of the time. In between that time, I would still be earning interest on my money. Ultimately, I would like to own them free of any previous liens and either sell or rent them out. Is there clearer path to choosing and purchasing property at tax sales where I'll most likely be able to own free and clear after a certain time period?
Is John Beck's Free and Clear program more advantageous than the state specific materials?
Again, thank you for the replies.
There are two websites that I've looked at that were fairly helpful. the first is ****Must Reach Freshman Investor status before posting URL's***; the second is ****Must Reach Freshman Investor status before posting URL's***.
Also, concerning the books you mentioned, most times you can check them out from the library. I checked out 16% Solution from my local library.
Leo_Investor--(CA)-------------
You are still showing confusion here. In CA there is no holding period and you get your money back. The property is auctioned off, you get a deed. That is it. There is no lien, there is no right of redemption, there is no getting a return on the investment. You get the property and may get a profit from that if you resell it or it can be rented out. As over 90% of properties that go to tax sales are vacant lots, parcels, and tracts, the chance of renting it out is slim.
In other states there are liens to be bought and then you might get a property or the investment return--usually the latter.
If you want to acquire properties with tax liens, then John Beck's "Free and Clear" course has what you want. He describes how to pick out the properties most likely to go to deed if you buy the liens. However, please understand that it requires a lot of research in the county records do so. From my limited experience doing this in OK, I'd say you can push your chances of getting a particular property up to about 10-20%. If you buy liens at random, your chance of getting a property deed is about 2-5 percent. Your chances, with random buing of liens, of getting a deed to an improved property or a valuable land parcel is probably about one in a thousand--0.01%, I'd estimate.
Good Investing********Ron Starr*********
mark1028: I received your PM. Thanks for the links.
RonaldStarr: Regarding purchasing at tax sales in California, since it is a deed state then are you saying that if I carry the winning bid, then the tax bill is paid off and the property is transferred to me free and clear of any other outstanding liens? I understand Due Diligence is very important in any REI purchase and I intend to do the proper research before any consideration for purchase.
I will pick up John Beck's Free and Clear system asap. Do you think his California state specific program is a better alternative? Thanks again for the replies.
Leo_Investor--(CA)-------------
I can't comment on buying John's CA program vs the "free and clear" program, as I have not read his CA program. I don't own it. I rely on my own experience in CA tax sales investing.
No, while there are lot of obligations against properties that are wiped off, there are some things which survive the tax auction in CA. I recommend that you read the state laws about collection of delinquent property taxes so you know what they are so you can check them out before bidding.
Many tax collectors will list those on their website description of tax sales. I recommend the Nevada County website. The public information posted at most sites comes from the CA State Controller's office, which is responsible for oversight of tax sales in CA.
Good Investing***********Ron Starr**********