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.
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!
In Georgia, it's 20% above the sale for the owners to redeem. There may be more penalties that the tax assessor may levy but basically your profit is 20%.
Definitely look online for the differences between tax liens and deeds, it would be a lot to go into here but VERY broadly, you are buying a first position lien on a property (meaning you must be paid off for the property to be sold or transferred) or you are buying a deed to the property from the county tax assessor that you can then use to take possession of the real estate.
In terms of which is better, it really depends on what your goals are. Liens are a very safe investment as long as you know what you are buying but you may be waiting for a significant amount of time to be paid off. On deeds, you are taking the risk of buying real estate without the benefit of inspections and disclosure.
On where to buy, start close to home and as your confidence increases so will the distance you will go! Depending on the state you may only have these auctions once a year and somewhere else they will be every month so you will find yourself quickly looking elsewhere to find fresh opportunities. I find myself doing much more online than ever before.
In terms of the Treasurer vs. Property Assessor, yes. The name can change but it really boils down to whatever government office that is responsible for levying property taxes. Tax Assessor, Property Assessor, Office of the Treasurer, Department of Revenue, whatever.
I would always recommend seeking expert advice and associate with people that are doing this very thing. Your local real estate association might be a good place to start, take the president out to lunch and pick their brain!
This is a VERY research intensive business. On the last auction I did, I had researched over fifty properties and only ended up winning one. Of course that was an online auction which are the most competitive. And yes you will fall in love with a place and really want to win it only to be outbid. Happens all the time. Mostly you want to know your numbers and what you max bid is and don't go above it.
It can be a fun and profitable venture and it can be a nightmare. There are as many horror stories out there as there is success stories. Take your time, learn as much as you can and mitigate your risk via due diligence before you take the plunge and you'll be fine.
Happy bidding!
Thank you so much. I have had an interest in this sort of thing for a while and with your help, might just finally take the plunge. One last question -- where is the best place to find these opportunities? The local newspaper, online, the treasurer's office, or where? I'm excited to start looking into this more via videos and so forth, so if you know of a particular youtuber you'd recommend, please let me know. Thanks!
I would start with your local tax assessor's office and go from there. They will be happy to provide you with a list of properties coming up for auction, the date of the auction and the auction rules. You are helping them by bidding so they are happy to help.
Alright. I didn't think they would do that. That's great info to have. Thank you.