Posted by Sheila (TX) on May 17, 2003 at 08:29:08:
Thank you for your comments. I will look at your web site and find out if I (we) can make it to the seminar in OK.
As always, I do appreciate your willingness to help those of us new to the industry.
Sheila
Sheila–(TX)–asks Tax Sales? Revised. - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on May 17, 2003 at 08:08:13:
I received the following via e-mail. I have removed Sheila’s last name and a couple of other items to preserve privacy. I post here so others can learn and, if they wish, post comments.
-----* THE E-MAIL -----**
Sheila Anonymous wrote:
Hello Ron,
Thanks for getting back to me on the creonline website. I had inquired about Lou Vukas and his course.
You certainly post a lot of messages and I was happy to read a good number of them. As a ‘newbie’…I do appreciate your taking time to help those of us who are just starting out.
One post you mentioned being a friend of Mr. Beck. I bought his course after watching an infomercial. And, I did find it very thorough as far as addressing the various Stated laws.
Do you suggest a newbie start out with this strategy? My main concern is like so many others, needing cash up front and the possibility of evicting someone who may be in poor health, etc.
No need to write a discourse… LOL I’ll read the other posts you have made to creonline…but if you would just give me a ‘yes’ or ‘no’ that would suffice for now.
Thank you so much!
Sheila Anonymous
Atown, TX (Just south of Ft. Worth)
-----* Response -----
Sheila Anonymous–(TX)-----------------
Well, in general I do not suggest that beginners start with foreclosures. And tax sales are a subdivision of the general class foreclosures.
Investing in tax liens for the interest rate or penalty return is very good, but more for those with disposable income to invest. Very easy to learn and do, very safe, if done with some caution, and very profitable. Does not take much time.
Buying real estate with tax sales is much more difficult for a beginner. However, it is also extremely profitable, if you are knowledgeable and cautious.
Tax sales may be the best type of foreclosures to start with, as they wipe off virtually all other obligations from the property–in most state. I recommend studying the laws related to the collection of delinquent property taxes very carefully. In TX they are extremely lucrative. If you don’t get the property, at least you get a very high rate of return on your investment. When you “lose,” you still win. Also, there are sales virtually every month to attend.
However, understand that you will have to learn a lot to be successful. It will not be easy.
I’m not sure whether you can do very well in Dallas or Tarrant Counties, as a lot of people attend sales there. Also some local people have suggested going to the less-populated counties in the area. I watched part of one Tarrant tax auction about three years ago, and there were a lot of properties being sold. There was a pretty bid crowd, about 40 or 50 people, I guess, and there was a lot of milling around and people trying to keep track of what was going on. I got the impression that a lot of the attendees were beginners. I was there just to observe, not having researched the properties myself. I stopped by after buying a house in Waco at a tax sale that morning, and was heading to Oklahoma for the annual tax resales there.
I have also attended sales in Athens and the city of Leon. In the latter there was only one bidder and several properties brought up to bid. I was tempted to bid on one property which the appraisment district records showed as being a house. Bid about $9K. I had not seen it so desisted. I’m glad I did. I found the property after the sale, which was hard–I had to park in a cow pasture and walk a ways, and I saw where there probably had been a house. Before the fire which left the nearby trees charred. There was a table and chair sitting there. I guess the owners came over from time to time to sit and remember their house.
My grandfather, Albert Starr, was born and grew up near Elkhart, in Anderson County. I’ve attended the Starr family reunion there a few times. Won’t make it this year, I don’t think. My great grandfather, Thomas Starr, bought a property on a tax sale in that area in about 1892 or so. Wish grandpa and my father had followed his lead. I’d have grown up in an affluent home and never have had to work–I fantasize.
In case you might be interested in a small trip, I will be doing a seminar on beginning real estate investing in Lawton, Ok, on June 1st. Here is my website: www.investok.net
I’d suggest starting with two strategies if you do tax sales. The first is buying properties that are already owned by governmental agencies which nobody else bid for at the tax sales. These “struck off” properties can be bought by making offers to the governmental agencies that hold them. And you can offer as low as you like. The other is contacting the owners of properties which are scheduled for tax sale–or, within the redemption period, those whose properties have already sold–and try to buy the properties for a steep discount from market value.
Don’t worry about evictions. First, over 90% of tax sales properties are vacant lots, lands, or tracts. And, even for the few improved properties, eviction is a simple process and there are many people who will help you with it for a relatively modest fee.
Good InvestingRon Starr******