Texas tax lien sales are an amazing investment opportunity, and here’s what I experienced at a Texas tax sale.
Wow! What an Auction.
I am flying back from my first Texas tax sale auction. There were hundreds of tax delinquent properties for sale on the list, and over 100 eventually were auctioned. I flew there armed and ready to invest up to $100,000.
I arrived late Saturday, two full days before the monthly first Tuesday auction. Before leaving Florida, I had researched potentially attractive properties to buy that met my investment criteria.
I found 10 that were all within a reasonable distance from each other, so it was practical to look at them all in one day.
Since this auction was held in person, I or someone representing me had to personally attend the auction.
Want to learn the secrets of investing in tax liens and deeds? Are you interested in making a 6-figure income, like so many Ted Thomas students have? Get the FREE Safe Haven Investor System course (valued at $197) today.
LOOK BEFORE YOU BUY AT TEXAS TAX LIEN SALES
The first night I was there I reviewed the tax delinquent properties for sale list online and found that none of my selections had been redeemed, so I made a detailed plan to view all ten the next day.
That involved plotting each on a map and planning the most efficient route to drive to them all.
When viewing the properties, I was looking for reasons to lower (or raise) my evaluation of the property’s full value that I had determined from my online research.
Damage, such as broken windows or obvious exterior damage, are reasons to lower value, and a new roof or driveway might be a reason to raise the estimate of value.
Remember: I am not looking for a perfect property; just one that I can buy at a big discount, so I can sell it for a smaller discount. As Ted frequently says: “Buy low and sell low quickly.”
EVALUATING WHAT TO BUY AT TEXAS TAX LIEN SALES
On Sunday I looked at all ten properties. From the outside, eight of them had minimal problems that could be seen from the street, and I made minor adjustments to my evaluation based upon seeing those properties.
There had recently been a lot of rain and flooding where I was looking, and two of the properties showed significant signs of water damage. Should I write them off my list?
The first one had debris and sandbags around the front door. A neighbor commented that the house had flooded five times in the past few years.
The minimum bid on this house was more than half of its current value after I adjusted that value down for the likely water damage, so I took it off my list.
The second questionable property was a condominium, which had a very low minimum bid. Even with some apparent water damage, it was worth far more than the minimum bid, so I kept it on my list.
In the end nine properties had enough value in them to buy at the auction, in spite of the fact that none were perfect.
FINDING HIDDEN GEMS AT TEXAS TAX LIEN SALES
What’s the message here? Should I only consider pretty or near perfect properties at Texas tax lien sales? No. Everybody wants the most beautiful properties; that’s where the most competition will be.
Look where most other, less informed, investors are NOT looking.
Know how to research in advance online and find those hidden gems that others overlook. That’s where the best deals are. The real money at Texas tax lien sales is where others aren’t looking.
The best looking property on the list went for more than I was willing to invest.
That Sunday night Coach Bill Beddoes joined me, and the following day we took a second look at some of the questionable properties. Bill agreed with my assessment, and the next day we headed to the auction.
BIDDING AT TEXAS TAX LIEN SALES
With over 100 properties being auctioned there were a lot of people there, but on any particular property only a few bidders.
Unfortunately, some of those I was interested in were redeemed, and I was outbid on the remainder, but it was quite an educational experience to see the process first-hand in another state.
Who knows, next time I might be that lucky high bidder, who gets the bargain of the day that everyone else misses.
In the end I came back home with my $100,000. I bid wisely, and did not pay too much for a property.
Auctions are unpredictable. No matter how much you know and plan, you may still go home empty handed from Texas tax lien sales, but more experienced and with enough money to bid another day.
Can you buy tax liens in Texas? Yes, you can, and you can make a lot of money from it if you know what you’re doing.
Before you attend Texas tax lien sales, it’s important to do your research. Take a look at the properties before you buy to determine how much you should bid or if you should scratch the property off your list completely.
At Texas tax lien sales, you’re looking for hidden gems. The best deals are where other people aren’t looking.
There’s a lot of competition for the best and most beautiful properties. What you’re looking for at Texas tax lien sales are properties that aren’t necessarily perfect, but still good deals that you can sell quickly for a profit.
Is Texas a tax lien or tax deed state? Actually it’s a redeemable deed state. Just like with a tax lien, you don’t get the property right away because the property owner is given 180 days to redeem it.
If the property owner redeems the deed, then you get your money back plus 25% interest. If not, then you get the property.
Is Buying Tax Liens profitable in Texas? Absolutely! You can make amazing profits from Texas tax lien sales if you know the rules and do your homework.
If you’d like to know more, Ted Thomas can teach you. Ted has developed a top-notch training system that includes home study courses, video tutorials, Q&A sessions, live web classes and workshops, and personal coaching.
Ted Thomas is the only one who offers complete training and support, and this support system is what sets Ted apart.
Start your education today. Here’s your chance to get yourself on the fast track absolutely FREE. Right now, Ted is offering the Safe Haven Investor System course (valued at $197) to you as a gift.
Safe Haven is 2 hours of streaming videos and a 100-page illustrated manual that reveals how to profit from tax lien certificates & tax deeds. Get a big head start, and get your FREE Safe Haven course today.
Follow me on:
Share my blog here: