Chat Session with Darius M. Barazandeh

If you didn't participate in our Fourth of July, (actually 3rd of July) Tax Liens with a Bang session, here is the archived copy of our conversation. We have a special speaker every first Wednesday of the month.








09:11:57pm reinvestormark has entered the chat room





09:11:59pm Darius_B> Hi Joel





09:12:02pm Ronin080799> are we starting?




09:12:21pm Darius_B> Yes I believe we may start now





09:12:35pm Ronin080799> what is the format?





09:12:57pm joel> So, Darius what kind of tax liens are there??





09:13:04pm Darius_B> If you would like to start with some questions that is fine





09:13:41pm Darius_B> There are basically two different types of investment vehicles available





09:13:50pm Darius_B> tax deed and tax certificates





09:14:14pm Ronin080799> how do you pick tax liens/deeds? separating a good investment from bad ones?





09:14:21pm Darius_B> I have the greatest familarity (right now) regarding tax deeds





09:14:36pm Darius_B> Well it will depend on the state and the property





09:14:56pm Darius_B> but generally you will want to focus on the property that is backing the deed or certificate





09:15:22pm Darius_B> Although most investors don't realize this, you may get the property to keep





09:15:31pm Ronin080799> but is there a generic process one can go through to determine which deed is a good investment?





09:16:11pm Darius_B> You should research your state to determine what the return rate on the certificate is





09:16:22pm Darius_B> What state are you investing in?





09:16:47pm Ronin080799> i'm currently in CA but look to do investing in TX and GA too





09:17:01pm joe77199> Darius, I see that your course specializes in Texas. Can someone in NJ buy property in TX without actually having to go there?/msg joe77199





09:17:05pm Ronin080799> CA seems really competitive





09:17:11pm joel> Does it depend on the county??





09:17:57pm Darius_B> Ok well all of those answers are correct





09:18:13pm Darius_B> First you can purchase Tx property from another state





09:18:17pm Ronin080799> what answers?





09:18:24pm Darius_B> California is very competitive





09:19:01pm Ronin080799> does counties in TX do online bidding?





09:19:12pm Darius_B> You can purchase property in Tx from another state





09:19:20pm Darius_B> No they do not





09:19:38pm joel> Wouldn't it be bad purchasing a property without looking at it??





09:19:35pm Darius_B> There are two primary ways to bid on Tx properties





09:19:46pm Darius_B> I agree





09:19:58pm Ronin080799> so how does one purchase from another state? snailmail?





09:20:08pm Darius_B> First, you must ALWAYS inspect the property





09:20:26pm joel> Digital cameras do wonders....





09:20:27pm Darius_B> I have known people who do this, but I do not reccommend





09:20:31pm Ronin080799> how? if you are in another state?





09:20:39pm joel> If you have a friend in the state..





09:21:02pm Darius_B> The best way is to have a person in another state inspect the property for you





09:21:27pm Darius_B> there are many investors who visit Texas to inspect and select properties to buy





09:22:27pm joe77199> could you have a realtor inspect the properties and have an attorney attend the auction for you?





09:22:30pm Ronin080799> do you teach how to inspect the properties?





09:22:55pm Darius_B> You can have an agent take care of property inspection and purchase for you





09:23:02pm Darius_B> Yes I do





09:23:51pm Darius_B> I cover the questions you should ask when you view and inspect a potential buy





09:24:29pm joel> Texas is good to invest because of the yield, right?? But what are other good states??





09:24:26pm Darius_B> But the key is performing the legal research as well





09:24:42pm Ronin080799> can these "techniques" you teach be broadly applied to other deed states?





09:24:53pm joel> Legal research can be done online as well.





09:25:09pm Darius_B> There are a number of ways in Texas that you can get into trouble if you don't follow a methodology





09:25:51pm Darius_B> For those interested in Texas investment and also investing in other states...I can review some trouble areas for investors





09:26:08pm Ronin080799> cool





09:26:16pm Ronin080799> please do





09:26:31pm reinvestormark> I am in Texas, and I am interested in buying here





09:28:42pm Darius_B has entered the chat room





09:29:28pm reinvestormark has left the chat room





09:29:45pm Darius_B> You should first determine whether the property has a homestead or agricultural exemption filed on it





09:29:52pm reinvestormark has entered the chat room





09:30:19pm Darius_B> This will determine not only the redemption period, but also the return you get





09:30:31pm Darius_B> Keep in mind this is the Texas process specifically





09:30:46pm Darius_B> Some specifics





09:31:34pm joel> You can keep on reinvesting the profits then..





09:31:33pm Darius_B> If the property is a homestead or agricultural exempt then it will have a one to two year redemption period





09:31:43pm joel> and your yield goes up.





09:31:57pm Darius_B> Yes, joel thats right





09:32:26pm Darius_B> In Texas, if the property is redeemed in the first year the return is 25%





09:32:41pm Darius_B> If it is redeemed in the second year the return is 50%





09:33:35pm Ronin080799> so TX is kinda like a hybrid state? lien/deed





09:33:36pm Darius_B> Keep in mind that Texas has a 'two-tiered' redemption policy, this makes Texas very favorable because...





09:33:42pm Darius_B> Yes joel thats right





09:33:48pm Darius_B> yes





09:34:29pm Darius_B> Ok, lets cover the other side of this...IF the property is NOT a homestead or agricultural exempt property the redemption period is 6 months





09:35:32pm Darius_B> In that 6 months the amount the delinquent homeowner must pay you back is 25% plus you opening bid, amount to record the deed, subsequent taxes, etc.





09:36:30pm joe77199> In TX I heard that any agency can have a tax sale not just the county? ie school.





09:36:32pm Darius_B> Does everyone understand what I am talking about regarding redemption?





09:36:42pm Darius_B> Yes thats true





09:36:46pm Ronin080799> yes





09:36:50pm Darius_B> These will be called strike off sales





09:36:52pm joe77199> yes





09:37:27pm Darius_B> But typically other entites will be owed money as well (not just the school). The attorney handling the suit will be required to join all the other entities which are owed money





09:37:55pm Darius_B> This makes sense because they are plaintiffs that are entitled to the taxes as well





09:38:49pm Darius_B> Joe, when the property is not sold at the regular auction it will go to a strike off sale and the angency that first started the sale will handle the auction





09:39:07pm Darius_B> Does anyone have any questions?





09:39:18pm Darius_B> I know this is alot to cover





09:39:19pm joe77199> so where would you as an investor go to get the best deals





09:39:33pm Darius_B> I would focus on smaller counties





09:39:36pm joe77199> it is alot





09:40:01pm Ronin080799> counties in rural areas?





09:40:08pm Darius_B> In Texas, tax sales are handled in a county by county basis - this means that each county has its own sales





09:40:35pm Darius_B> yes joe, focus on smaller counties





09:41:06pm joel> If we want to find out how our own county handles tax liens or tax sales, who would we contact??





09:41:04pm Darius_B> they don't need to be rural per se, but usually the smaller counties with infrequent sales will offer you the least competition





09:41:19pm Darius_B> Always start with the Tax Assessor Collector of the county





09:41:32pm Darius_B> Ask for the delinquent property tax division





09:42:45pm joe77199> Darius I happen to be a Tax Assessor in NJ.





09:43:03pm Darius_B> I have laid out some questions you should ask





09:43:41pm Darius_B> Thats great...I actually spent half a year helping one of our tax assessor's in Texas revise thier operations





09:43:42pm joe77199> ok





09:43:50pm Darius_B> Paul Bettencourt





09:44:09pm Darius_B> I have not spent time researching the N.J. process





09:44:17pm flyallnite has entered the chat room





09:44:29pm Darius_B> But you should always ask the following questions:





09:44:40pm Darius_B> 1) Are there tax sales held every month





09:44:42pm Ronin080799> Darius, what other states are you familiar with?





09:45:09pm Darius_B> Generally my focus has been on the Texas process





09:45:27pm Darius_B> My course is very specific to the details of purchasing Tx. property





09:46:29pm Darius_B> There are so many subtle distinctions in every state that you must be sure you understand them all





09:46:48pm Darius_B> Generally I will say that your legal research for other liens and debts is key





09:46:54pm Darius_B> in any state





09:48:37pm Darius_B> You should watch out for additional liens such as federal and state tax liens





09:50:45pm joe77199 has entered the chat room





09:50:47pm Darius_B> What state are you investing in Ronin?





09:51:28pm Darius_B> Ronin, what state are you investing in? Did you say California





09:51:36pm Darius_B> and Texas?





09:52:06pm Ronin080799> yes i'm in california





09:53:28pm Ronin080799> i'm getting started in the whole process. i thought i'd start in cali but found out its not the best place for newbies





09:53:45pm Darius_B> One thing that I think is important for everyone to do is get involved with a local real estate investment club and stay informed through quality sites (like tcinvestor) and NETWORK





09:54:20pm Ronin080799> awesome. i just found one in my area





09:54:25pm Darius_B> Thats true





09:54:47pm joel> If you cant find a local club, I will help find you one.





09:55:16pm joel> One place you might want to look if you can't find a club is on the Web Links area.





09:55:34pm Darius_B> The biggest thing that I think is important is finding states that have a high redemption rate and non-centralized auctions/sales





09:56:10pm Darius_B> if a sale is centralized then it is generally going to be pretty well known, and there is likely to be more competition





09:56:47pm Darius_B> Texas is favorable because we have 257 counties, and EACH county can and does foreclose seperately





09:57:18pm Darius_B> Sorry I it is 254 counties!





09:57:19pm joe77199> I went to a tax deed sale in PA last month there were 250 people for only 35 properties.





09:57:43pm joel> Wow





09:58:01pm Darius_B> Not alot of properties available for bidding





09:58:06pm joe77199> needless to say I did not get anything





09:58:09pm Darius_B> But you may find that alot of people just go to watch





09:58:19pm joel> I guess going on rainy days they have the auction has an advantage, right??





09:58:17pm Darius_B> right





09:58:31pm Darius_B> Of course





09:58:39pm Darius_B> Also sales close to the holidays are helpful





09:58:57pm joel> Hmmm good point





09:59:13pm Darius_B> That's why investing in smaller counties can be very helpful when the sales are done county by county





10:00:25pm joe77199> yes, less competition and maybe a few good properties





10:01:22pm Darius_B> Sometimes the harder it is to get a list of properties the better it is for the investor





10:01:52pm Darius_B> In Texas we have a large delinquent tax collection firm that handles something like 65% of the sales





10:02:19pm Darius_B> they even publish auction lists online





10:02:36pm Darius_B> anyone is welcome to check these out at www.publicans.com





10:02:42pm joe77199> that firm handles a lot





10:03:00pm joe77199> thanks for the site





10:03:13pm Darius_B> but when counties make information so readily available, you WILL have more people bidding and involved in the process





10:03:44pm joe77199> that's true





10:03:45pm Darius_B> Has anyone ever had trouble finding tax sale properties





10:04:02pm joel> I have





10:04:16pm Darius_B> Here is a great shortcut





10:04:28pm joel> I talked to one of the offices downtown in NC





10:04:40pm joel> They said that they didn't do tax liens





10:05:08pm joel> So I can only deduce that they do tax sales, right??





10:05:09pm Darius_B> if the county is web enabled you will be able pull up the delinquent tax bill for the property you are investigating





10:05:15pm Darius_B> online





10:05:53pm Darius_B> I don't know about the extent of thier national practice, but I know in Texas they handle the tax deed auctions





10:06:30pm Darius_B> talking about finding addresses - you can take the delinquent tax bill and cross reference address on the bill





10:08:52pm joe77199> In TX when you are the winning bidder for a property and get the deed who pays for the foreclosure process?





10:09:04pm joe77199> in NJ the investor has to pay.





10:10:24pm flyallnite has left the chat room





10:10:33pm flyallnite has entered the chat room





10:11:10pm Darius_B> they forclosure process is covered by the investor as well





10:11:28pm Darius_B> but this is taken into account when the minimum bid is tabulated





10:11:57pm joe77199> so it is included in the bid?





10:11:59pm Darius_B> so when analyzing deals you need only worry about the amount stated and should not add additional amounts generally





10:12:36pm joe77199> generally?





10:12:44pm Darius_B> yes it is included in the minimum bid





10:13:11pm Darius_B> well I say generally because sometimes subdivision dues may not be included





10:13:41pm Darius_B> so you should rely on the opening bid, but check the subdivisions to be sure that no additional penalties are owed





10:14:05pm joe77199> they should be minor costs? right?





10:14:22pm Darius_B> Generally that is true, but one should always chekc





10:15:09pm Darius_B> Does anyone have any additional questions?





10:16:22pm Darius_B> I am working on a course which will cover tax sales across the US





10:16:34pm Ronin080799> how long have you been doing this?





10:16:46pm Darius_B> this is a massive undertaking, but I feel it will benefit people interested in other states as well





10:17:16pm Darius_B> The biggest challenge is giving people enough information to let them REALLY get started and not feel insecure or unsure





10:17:33pm Ronin080799> when will this be out?





10:17:34pm Darius_B> I know I have purchased many courses that only left me more confused





10:17:41pm Darius_B> and thats not good





10:17:58pm Darius_B> I am shooting for the middle of September





10:18:01pm joe77199> that is the problem with most of the other gurus courses





10:18:06pm Darius_B> I agree





10:18:36pm Darius_B> If anyone has more questions you can leave me a message on this site or email me at taxenterprises@yahoo.com





10:18:37pm Ronin080799> when will the new course come out?





10:19:02pm Ronin080799> cool





10:19:09pm Darius_B> I am trying to get it completed around the middle of September





10:19:36pm joe77199> Thanks Darius have a good holiday





10:19:37pm Ronin080799> should we wait for it or get the TX manual?





10:19:40pm flyallnite> Is there a way to get a transcript of this chat? (I showed up late)





10:19:46pm Ronin080799> for newbies





10:19:49pm Darius_B> Well the Texas manual is very specific to Texas





10:19:59pm Darius_B> I think it cannot be beat as far as investing in Texas





10:20:13pm Darius_B> but it will have limited applicability in other states





10:20:31pm Darius_B> mine is a step by step approach that details everything





10:20:57pm Darius_B> because the one thing I hated was all the missing links that everyone seemed to leave out of the materials





10:21:16pm Ronin080799> yes me too!!!!!





10:21:56pm Darius_B> Its hard to feel confident when you are not sure about the overall picture and all the little details





10:23:14pm Darius_B> If there are no other questions, I look forward to getting emails from everyone who would like to learn more





10:23:26pm Ronin080799> how much will the new course cost?





10:23:43pm Darius_B> I am not sure...probably around $97





10:24:25pm joel> I would like to add in as well that the Tax Lien Forum is always open





10:24:33pm Ronin080799> great. thanks for everything. talk to you soon.





10:24:41pm Darius_B> well thank you for participating the forum and I look forward to hearing from everyone!





10:24:44pm Darius_B> Thank you!





10:24:55pm joel> Thanks everybody!!





10:25:09pm joe77199> thanks.