Ownership Percentage
Another question. What the heck is ownership percentage when dealing with these liens? I am guessing you bid down the amt of interest you are willing to accept? If this is the case, how does this affect who has the higher bid?
Thanks
Chase
I’m a first time investor in tax liens so take this info for what it’s worth From what I’ve researched (along with contacting Polk County), the bid down process is exactly what quidam states. If I end up winning the tax lien at 90% (cause I bided down), then when the courts go to sell the property, I get that amount. The lady that I talked to at Polk County basically said that if you own it for less than 100%, it’s really difficult to acquire the deed to the property.
But on the bright side, it does seem like everything is on the up and up. You buy a tax lien. You gain 2% interest on your investment for every month that the lien is late. If the property owner doesn’t pay up the tax lien after the redemption period (1 year 9 months), you can then have 90 days to apply for the deed to the property. Then the tough part kicks it. You need to serve eviction notice. Similar to what the bank does when someone doesn’t pay their mortgage. But still, if you end up spending 2-4K and get a 25K house, that’s a hell of a profit.
The only thing I don’t understand is in a free market system, if there’s money to be made, people will eventually end up gravitating to it until the profit margin drys up. It’s like a town without a coffee shop. First guy to open one up makes a killing. Someone notices this and decides, I want to get rich too. He opens up a coffee shop. Someone else does the some thing. Over and over until it gets to the point where there’s an abundance of coffee shops and each are barely eeking a living. But I digress and you get the point.
Anyway, hope to see you at the sale. Email me if you have questions or would like to discuss. I’m going to be gone for the weekend but I’ll be home Sunday night doing some last minute researching for the tax sale. Good luck. Dave
Quote:
), the bid down process is exactly what quidam states.
If I end up winning the tax lien at 90% (cause I bided down), then when the courts go to sell the property, I get that amount.
But on the bright side, it does seem like everything is on the up and up. You buy a tax lien. You gain 2% interest on your investment for every month that the lien is late.
If the property owner doesn’t pay up the tax lien after the redemption period (1 year 9 months), you can then have 90 days to apply for the deed to the property.
Then the tough part kicks it. You need to serve eviction notice. . But still, if you end up spending 2-4K and get a 25K house, that’s a hell of a profit.
Yes, that is the tough part... IF you can sell it for 25K; particularly in a smaller town (where you might find some 25K properties). Some locals will shy away from buying a house from which their neighbors have just been evicted. There will also be carrying costs on the vacant property.
But, as you say, there can be a "hell of a profit!" And I hope you had some at the recent Iowa sale
quote
Yes, that is the tough part... IF you can sell it for 25K; particularly in a smaller town ......
after spending 2-4K on the process, if the house is valued at 25k, list on market for as is 20k, even neighbour with $$ and sence may put pride aside and grab the bargain, your profits are still up to 500% quick sell with little carry cost...
go for it
Kris,
I get an e-mail for New Jersey and other states (but not Delaware) sent to me from the following:
www.TaxSalesList.Com LLC
(e-mail : "update@taxsalelist.com"
Hi I saw your post and thought maybe I could give you some information you could use. My book says that Delaware only has 3 counties. Each county handles tax deed sales differently. Cities or towns also can have tax sales. Delaware does not have tax lien sales only tax deed sales. Check with the treasurer in each county for lists. County Tax Sales, properties are being sold for nonpayment of county taxes and or county water and sewer fees for no less than a two year period. These sales are held app. every 3 months. City or Town Tax Sales, properties are being sold for non payment of town taxes. All properties are located within a town or city limits and taxes have not been paid for no less than a two year period. These sales are verbal bidding, property going to the highest bidder. I copied this information from my Rogue Real Estate Investor Collection. Hope this helps you out!
[ Edited by crackerpar4 on Date 06/28/2005 ]
Hi new to all this but are you saying in Florida if you get win the bid for a tax deed sale you still have to pay 1/2 the assessment? [ Edited by farefax on Date 06/27/2005 ]
In FL, the cert purchase is back taxes plus costs. After 22 months from initial date of cert, you can apply for tax deed, and you pay the costs of the application and other items.
If the property is a homestead property, the opening bid is the back taxes, interest, costs, PLUS 1/2 the assessed value of the property. You, as the holder of the cert who forced the sale, automatically open the bidding at this level. If there are no other bids, then YOU are the winner and YOU MUST pay this amount, otherwise you do not get the property AND YOU LOSE your prior investment.
Want to make due before I get myself in trouble, I go to a tax deed sale and the opening bid is10.000.00 does that already include the assessment or does that get tacked on to it? Also if there are any liens on it do you have to pay those as well?
Thanks for your help.[ Edited by farefax on Date 06/29/2005 ]
Whatever is announced as the opening bid will include all items which must be paid.