To everyone here at GA. Thanks for the encouragement.
🏡 Local WIN 🏘️
For the past couple of years I have been working on paying off my mortgage and being debt free. My wife and I both wanted to do this. It was not always easy but we keep plugging away. Today was my last mortgage payment. We now own our house free and clear. We have no other debt.
For anyone reading this that is still on the path to being debt free. Don't give up. Is it hard at times but no matter what anybody tells you it is worth it.
No one knows what the future holds (Until the real President is back in office). We are very concerned that inflation is going to get really bad. Hopefully not having debt will make it easier to deal with rising prices.
Anyway once again. Thanks everybody.
Oh, thank you. I wondered how it worked. So let's say someone is behind $10,000 on their property taxes. The county sets up a sale and you come to bid. The bidding starts at $10,000. And it could go up quite a bit more than that. So let's say the house finally 'sells' for $70,000. Who gets the $60,000 profit? Does that go to the owners who are losing their house? Or does the county just keep it?
I have heard that even if you do acquire a house that way, the people who lost it can may be able to get it back. So like you said, some counties require a time period before possession. Is that because the original owner is given a chance to get it back? And if so, how does that effect you? Do you get the money you invested, back? Thanks for your help. I've always wondered about things like this and adverse possession, squatting, etc. Some things like those just mentioned, seem so weird and unfair. Appreciate your explanations.
No problem. Many of the answers depend entirely on the county you live in. For instance, in Oakland County Michigan, the county treasurer keeps the profit on the auction and the auction company adds a 10% buyer's premium to the final bid price. In Georgia there is a one year 'right of redemption' after the auction in which the owner can pay back all the taxes plus the overage with a premium on top for the buyer (which would be their profit instead of getting ownership of the property). New Jersey has a hybrid process and West Virginia has a different process and on and on it goes. The place to start for answers is your local county Treasurer's Office. They can provide the information on the tax auction process, a date for the upcoming auction and a list of properties to be auctioned off. Many counties have moved to online auctions but the real gold is the in-person only auctions, not many bidders at those.
Interesting about the in-person auctions. Do you also go to regular real estate auctions? (like with a real estate auctioneer - as opposed to the county courthouse.) You seem to be well versed and your operation is widespread!! Lol. That could be taxing (as in tiring, not taxes.) I remember reading in Rich Dad Poor Dad that Robert Kyiosaki would go to different states to buy when he found a good deal.
Thanks for the info about the Treasurer's office. I can't believe they keep the profit, though! Well, I can believe it, but it seems wrong. And it sounds like in Georgia, you could buy a place, fix it up and even move into it and then still be booted out. So I'm wondering what people do there. Maybe just buy it and rent it if it's livable. Interesting that things are so different from state to state. Is this your full time income gig? It sounds like it would take a lot of time to learn all these details. I suppose you could still do it 'on the side,' but it would be great if you could do it full time. Thanks. It's fun talking to you about this.
I used to go to regular auctions, not so much anymore. It is fun, especially when the county does their tax auctions and seized property auctions on the same day! (I have impulse bought many automobiles and motorcycles as a result of this.) I have a full-time job but my wife helps me with this business as she doesn't work. She is amazing with it now. Knows the areas we want and can value property in her sleep. In Georgia, during the redemption period you would not have a right to possess the property until that period had passed. Basically you have an IOU and your money is tied up until you can take possession or they redeem which includes your profit. Although some investors in that area do check if the property is occupied and if not, they will rent it out and collect rents during the redemption period. Very illegal but I have seen people who thought they rented a legitimate place get screwed when the owners show back up. Dirty business, that. Don't do it. Mostly you want to decide if you want to invest in tax deeds or tax liens or both and figure out what counties to invest in based on that. You can go as far away as you want to. One of my competitors in Michigan is from Utah and has never stepped foot in the state! And you would be amazed how much Canadian money comes over the border and into tax liens/deeds in America! Happy to give you any guidance or advice I can without doxing myself. There is also quite a bit of information on YouTube as well. A lot of the more incredible deals you hear about like people buying a house for a thousand dollars are a thing of the past though thanks to the auctions going online. But you can still find discounts and tax liens are (mostly) always safe!
Interesting! Thanks again. The whole set up in Georgia is weird. I guess people have to have enough money that they're not worried about it sitting for a year. Either that, or they feel confident the owners won't come back and make good on the payments, so they wait. But out of curiosity, if the owners did come back with cash to get their home back, how much does the person who bought it at the tax sale get in profit? Is it a percentage or a flat fee or what?
And I could probably look on youtube for some of this info (and I will) but it's fun having a personal mentor, so if you truly don't mind answering, I'll definitely ask! For instance, what's the difference between a tax lien and a tax deed? Do you consider them about equal, or is one better than the other? And how in the world did you decide on where to buy? I mean, if you're buying in Georgia AND Michigan, as well as other places -- that's a whole lot of driving (assuming you actually go. Maybe you do it all online.) But even if you do it online, it's pretty spread out. I'm sure you must have your reasons. Otherwise, it seems like you'd just stick with states close to each other, like MI and Wisconsin.
Is the Treasurer of the state the same as the Property Assessor for the state? Because I was telling someone and they said they don't have a Treasurer in their state. ??
If a person was interested in doing this but felt unsure of the legalities, would you recommend they get a real estate attorney to advise them? Or is there a different specialty they should look for? How long have you been into this? And it sounds like you do enjoy it, so that's good. I can imagine it can be frustrating if you go to get a house and you've done some research, and then don't get it. So you've got to have had enough success doing this that you still like it. Can't wait to hear back!