El Paso County Tax Lien Sales Podcast

 

 

Transcript:

Good morning today were going to be talking about text Deed Foreclosures in Texas, and specifically in El Paso County.

 

What are the steps for buying a tax deed for closure?

  1. Understanding the property tax code for Texas. You should not proceed with a purchase of a tax lien without thoroughly understanding the property tax code
  2. Locate a list of tax liens for your county If you have a title company you close at you may ask them to pull a list for you. Most El Paso Title companies won't provide this list. 
  3. Research The properties you're interested in. You can drive by the property (without disturbing occupants) you can use Google earth, you can check the property records on El Paso county assessor. Ask us for the checklist our investors use when evaluating properties.
  4. Check comparable for determining the market value. Some novice investors use Zillow or REALTOR®  (which are actually owned by the same entity) for property values. You're better served contacting a local realtor for a list of reels recently sold properties similar to your subject property.
  5. Crunch the numbers: check if the property has a homestead exemption, compare CAD value versus your realtor's comps less holding cost and expected repairs. Because you generally do not have access to the interior of the properties you will have to use an educated guess of the condition of the property. Another reason to consult a realtor is because you can ask he or she to check any previous times the subject property was listed and evaluate the photos. You want to Pay special attention to mechanical systems, AC, plumbing, foundation, windows, and roof photos. This doesn't guarantee the condition of the property will be similar but you are just further educating yourself. Lastly you must consider you're holding cost and subtract that from the value. Holding cost can include insurance, maintenance, utilities.
  6. Register to bed at the sheriff's sale
  7. Secure your funding like Proof of funds or cashier’s check. You need to bring negotiable funds. El Paso has several hard money lenders with reasonable rates. Ask us for recommendations. 
  8. Bidding strategies - There are so many strategies to employ. I personally would recommend attending a few auctions before bidding and join a local investment group to learn more.
  9. If you're the winning bidder your will receive a Initially receipt and a deed in the mail. You will need to secure your property.
  10. Record your property deed at the El Paso County Deed Records. This will start the clock on the redemption.
  11. Now that the property is yours and the deed has been recorded you can proceed with repairs. Because time is money, the sooner repairs are done the quicker you can preserve your asset
  12. Rent or sell - consult a realtor for market rents vs market value in its present condition. Sometimes you won't have any other choice but to rent it because the title is not insurable or you must wait 2 years redemption period.