Question For Tax Sale Specialists
Hey guys
I have a question regarding tax sales. I'm currently dealing only in REO property but wanted to expand my knowlege and start going after some of these deals through the tax sales. My question is about the "right of redemtion" clause when you buy a property. I know that the previous owner has a period of time to reclaim the property so does this mean that I must hold the property until the redemption period is up which can be several years on a homestead?
I know that when you buy through a tax sale that you'll receive a "sheriff's deed" to the property. Is it possible to flip these properties even with the redemption clause and sheriff's deed?
I'm green in this area and just want to expand on it.
Thanks in advance
Headsup--TX---------------
No, you can sell your interest in the property at any time to anybody who is willing to buy it. But how many people are going to want to buy the property when they know that they may have to allow somebody else--the previous owner--to buy the property back for the price YOU paid for it plus either 25 or 50 percent extra? What kind of price do you think they will want to pay? Maybe less than what you paid for it?
Now, about a third of tax deed properties have deceased owners. If you concentrated on those types of properties and could show buyers the likelihood of redemption is low, perhaps you could sell for a profit. Perhaps.
Every different way of buying or investing has features which seem good or bad to the individual buyer. You seem to want to do quick turn-over of properties. So, tax sales buying makes little sense for you, it seems to me. At least buying and reselling in TX. In OK, when you buy at the county tax resale auctions, there is no redemption period. If you buy there, you could resell soon. The same will be so in different states.
Good Investing**************Ron Starr*************
Headsup--TX---------------
No, you can sell your interest in the property at any time to anybody who is willing to buy it. But how many people are going to want to buy the property when they know that they may have to allow somebody else--the previous owner--to buy the property back for the price YOU paid for it plus either 25 or 50 percent extra? What kind of price do you think they will want to pay? Maybe less than what you paid for it?
Now, about a third of tax deed properties have deceased owners. If you concentrated on those types of properties and could show buyers the likelihood of redemption is low, perhaps you could sell for a profit. Perhaps.
Every different way of buying or investing has features which seem good or bad to the individual buyer. You seem to want to do quick turn-over of properties. So, tax sales buying makes little sense for you, it seems to me. At least buying and reselling in TX. In OK, when you buy at the county tax resale auctions, there is no redemption period. If you buy there, you could resell soon. The same will be so in different states.
Good Investing**************Ron Starr*************
Thank you Ronald.
That's excellent advice.
You are better off getting a general warranty deed even when buying redemption rights. Generally you never take quitclaim deeds, you only give them.
Contact Janine Martinelli at SANDRA SUTLIFF P.A. 941-743-0046...They have been doing quiet title for me for years. Cost $2k or less...Not worth doing quiet title on typical charlotte lots....
you might consider buying a RE Broker training book as there are subtlties to many of the they terms that are hard to type or ex press online.
also, these vary from state to state.
Thanks guys, I appreciated it !
another book that can be found at yard sales sometimes is called "Blacks Law Dictionary" its just what it says. a dictionary of law terms