Realty411 Magazine -- Learn From Our Live Expos Fall 2020 | Page 67

owed for back taxes . There are several variations with each state , so the focus of this article is Texas tax deeds since there are more properties available more often and Texas offers the best tax sale structure for real estate investors .
WHY ARE TAX SALES IN TEXAS SO SPECIAL ?
1 . The real estate fundamentals are so good . The economy is booming , there is no state income tax , and there is plenty of land , high population growth and great employment numbers .
2 . You get the property at the auction , not the tax lien . Yes , you still can buy properties at discounts to actual values .
3 . You get immediate possession of the property and you are entitled to the rent immediately as well .
4 . When you buy the property at the tax sale all liens are extinguished except for governmental liens .
5 . If the former owner or lien holder buys the property back from you , they must pay you your costs plus 25 % per year . It is a penalty fee and not an interest rate so it is not prorated . That is what “ redemption ” means in Texas tax sales . 6 . The auctions are held every month . There will be anywhere from 40 to 80 counties having a tax sale every month and usually between 1,000 and 2,000 properties being offered .
WHAT IS THE PROCESS LIKE ?
At a minimum , in any given month , you should :
● Find out which counties are having a sale .
● Get the addresses , minimum bid , and assessed value of the properties in your counties of interest .
● Cull the properties that do not meet your criteria .
● Visit the properties or have someone do it for you . Do not rely on posted pictures as they often are outdated .
● Check for liens that would not be extinguished by the sale .
● Prepare and attend the auction .
● Transition to you or your entity , the properties purchased at the auction
Image by Falkenpost from Pixabay
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