(Information contained within this page was not intended to be, nor should it be taken by the reader as legal, financial or tax advice. The information was written for educational purposes only. If the services of a Texas attorney, or real estate mentor or coach are desired, please contact Mr. Barazandeh or seek the services of another professional.)
(TRandle) Darius, I've got 8 o'clock. You want to get going or wait a bit?
(DariusBarazandeh) Tim I am ready when you are
(TRandle) okay, I'm going to turn off everyone's "voice" for the interview session and then will open it back up for general Q&A
(TRandle) Darius, please tell us (briefly) a little bit about yourself and your investing business.
(DariusBarazandeh) I am a licensed real estate attorney in the state of Texas and have an MBA in Finance.
(DariusBarazandeh) I worked as a business consultant for a number of years for a consutling firm called Deloitte and Touche
(DariusBarazandeh) One project that I was involved in was a business process
(DariusBarazandeh) re-organization for the Harris County Tax Assessor Collector
(TRandle) Why do you think tax liens, sales, and certificates are a wise investment?
(DariusBarazandeh) That lead me to first learn about the tax sales in Texas and the strong opportunties we have here
(DariusBarazandeh) First, lets be clear about terminology. In Texas and California we are dealing with tax deeds. This
(DariusBarazandeh) means that at the auction a deed is sold to the purchaser.
(DariusBarazandeh) So here in Texas we have tax deeds. These are an amazing opportunity...
(DariusBarazandeh) because here in Texas the structure of the process is vastly different that in other states.
(DariusBarazandeh) For example we have 254 counties which all conduct sales at one time or another.
(DariusBarazandeh) Typically sales can occur every month or every couple months.
(TRandle) If I'm not from Texas, but want to invest here because I've heard it's one of the better states, can I?
(DariusBarazandeh) Another aspect of Texas that is very powerful is our redemption rates and the redemption calculation. We...
(DariusBarazandeh) also have redempiton rates which are the highest in the country at 25% to 50%.
(TRandle) Can you please explain the term redemption period?
(DariusBarazandeh) Redemption is really quite simple. I want everyone to think of this when ever they hear the term..ok?
(DariusBarazandeh) Second Chance.
(DariusBarazandeh) It is simply a second chance for the owner to pay the back taxes and penalties owned on the property. This right however is not indefinite.
(DariusBarazandeh) There is a time clock that ticks which will limit the time period that the owner has to come back and save his/her property.
(TRandle) What are the different redemption rates?
(DariusBarazandeh) This is one of the most important things to keep in mind about Texas. First, the rates are from 25% to 50%. This however depends on how the property is classified.
(DariusBarazandeh) I want everyone to understand that redempiton rates are the additional monies that must be paid to you the tax sale purchaser by the delinquent property owner.
(DariusBarazandeh) Think of it as a ROI or return on investment.
(TRandle) If I'm not from Texas, but want to invest there because I've heard it's one of the better states, can I?
(DariusBarazandeh) If they want the property back they pay you what you paid at the auction, plus deed filing fees, plus costs associated with the maintance of the property
(DariusBarazandeh) Yes you can. There is currently no provision in our statutes which requires you to be resident of the state
(DariusBarazandeh) I deal with this question alot. The most...
(DariusBarazandeh) important thing to keep in mind when investing in Texas is this...
(DariusBarazandeh) You have a high probability of gettting the property. This is different than Tax Certificate states...recall that Texas we said was a tax deed state.
(DariusBarazandeh) This means that regardless of where you live you should visit the property or have someone who you work with visit the property.
(TRandle) So, I need to get inspections, surveys, etc., - all the normal tasks in acquiring a property?
(DariusBarazandeh) Not to that extent. The real issue is just making sure you have seen the property and you have an understanding of the economic conditions around the property.
(DariusBarazandeh) This is true investment not speculation.
(DariusBarazandeh) since you have a high chance of getting the property you must view it.
(DariusBarazandeh) There are properties which will have tremendous equity wrapped up in the deal but I still recommend viewing them.
(TRandle) So a title search is critical, obviously. Can I use my preferred title company or do I need one in the same county as the property?
(DariusBarazandeh) While for larger deals title companies will travel outside the county, for our purposes your best chance will come working with those title companies inside the county where the property resides.
(DariusBarazandeh) I want to add that performing title research on these properties is important. There are going to be, in my opinion, tremendous deals in the next 2 to 4 years here in Texas
(DariusBarazandeh) but we can't get excited and jump in without research.
(DariusBarazandeh) in my course I show people how they can save alot of money on title searches.
(DariusBarazandeh) You see you have to be able to balance the research aspects of tax sale investing with the volume of the properties going to sale.
(DariusBarazandeh) I wanted people to really understand how our title system works in Texas and how to avoid risk while not costing you an arm and a leg in title searches.
(DariusBarazandeh) Most courses I have seen don't ever cover the issue. As an attorney I have found that to unacceptable.
(TRandle) Is it difficult to get title insurance on these properties if I do end up with ownership?
(DariusBarazandeh) Great question.
(DariusBarazandeh) This is another issue I see author after author neglect to cover.
(DariusBarazandeh) Its ugly its not traditional...and people don't like to talk about it.
(DariusBarazandeh) When you buy at tax sales you have to understand where creative real estate techniques fit in
(DariusBarazandeh) I want everyone to be clear that you can still sell a house which you bought from a tax sale.
(DariusBarazandeh) The techniques we have are...
(DariusBarazandeh) lease option, owner financing (would'nt you love to be the bank...I sure do), or you can rent the property out.
(DariusBarazandeh) but lets get to the heart of the issue...
(DariusBarazandeh) the title company is hesitant to issue title insurance because they are not sure if title is clear.
(DariusBarazandeh) What do we know about real estate investing?
(DariusBarazandeh) there are many techniques that will allow you to get $ out of a property without traditional financing.
(DariusBarazandeh) Remember title insurance and the title company mess really comes down to trying to sell the property with traditional financing. I can get much more money out of a property by avoiding that route all together.
(DariusBarazandeh) I can owner finance the property and make a great rate of interest on the propery while I get to play bank.
(DariusBarazandeh) I can acquire a great deal of rental property and have tons of passive income because I know how to find cheap houses.
(DariusBarazandeh) Lastly, I can lease option the property thereby shifting maintenance on the tenant/buyer and earn my interest too.
(DariusBarazandeh) My course goes into these aspects because they are important and will make the difference in your investing efforts.
(DariusBarazandeh) the issue of title insurance and traditional financing on tax sale properties can be cleared up via what is called a suit to quiet title.
(TRandle) Okay, can you please explain quiet title and then I'll open the room up for Q&A when you're done?
(DariusBarazandeh) Ok great...
(DariusBarazandeh) The Suit to Quiet Title is a legal action where the attorney will go and try to notify hiers, claimaints...essentially those who might assert an interest in the parcel. This costs about $400 to $800 for an uncontested suit.
(DariusBarazandeh) It gives the title company some assurance that title is not going to be clouded by someone out of nowhere asserting a defense against the process. This is used if and only if you want to get a ban to finance you buyer.
(DariusBarazandeh) bank to finance your buyer
(DariusBarazandeh) You have to know how to get cash out of your properties
(DariusBarazandeh) a big portfolio does you no good if there is not cash flow.
(TRandle) Okay, we're now open for Q&A. Please try to let Darius answer a question asked prior to bombarding him with five more. Thanks.
(akovski) You said that the previous owner has to pay costs associated with the "maintenance of the property" while you had it if they want it back. But what if you made significant improvements to the property? Or what if you have a tenant currently renting it?
(DariusBarazandeh) Ok well lets take the first issue dealing with improvements.
(DariusBarazandeh) the statutes are clear that improvements must be those which are for preservation of value.
(DariusBarazandeh) An example might be paint and carpet versus and hole in the roof.
(DariusBarazandeh) The paint and carpet are not preservation according to the spirit of the Texas tax code...
(DariusBarazandeh) while fixing a hole in the roof is.
(DariusBarazandeh) This relates to the common law doctrine of waste. It is an attempt by the Texas legislature to motivate the current owner to preserve the delinquent owners interest.
(DariusBarazandeh) regarding the second question.
(DariusBarazandeh) Again I never see this covered....and it pisses me off
(DariusBarazandeh) You SHOULD NOT RENT THE PROPERTY OUT UNTIL THE REDEMPTION PERIOD PASSES. You will be liable for the value of the lease contract to your tenant.
(DariusBarazandeh) Again I have specific strategies in my course to make the process work very well.
(tcook44) Please explain further why you feel that with TX being a deed state there is such a higher prob. of getting the prop?
(efrem) Isn't the redemption period 2 years?
(DariusBarazandeh) Based on research about 40% of the properties get redeemed.
(DariusBarazandeh) 60% become part of the investor's assets.
(DariusBarazandeh) Now there are specifics in the process that make this 'ownership' more likely.
(DariusBarazandeh) In a tax certificate state most of the properties have a first mortgage held by a bank.
(DariusBarazandeh) Recall Texas is a DEED STATE.
(DariusBarazandeh) In the certificate state the bank is notified typically prior to the start of the foreclosure auction...and of course they come in and redeem.
(DariusBarazandeh) Excuse me a typo.
(DariusBarazandeh) In the deed state the bank is notified prior to the start of the auction.
(DariusBarazandeh) thus in Texas we have smaller lists with properties that have no first mortgage. In a certificate state the bank is not notified until after the auction. That being the case they will come in and redeem.
(DariusBarazandeh) Regarding the redemption period of 2 years, efrem
(DariusBarazandeh) It is what I call a two-tiered redemption period. In 1993 our legislature here in Texas decided that it wanted to help the farmers and those with a homestead exemption.
(DariusBarazandeh) They also realized we had too many properties which did not have taxes paid.
(DariusBarazandeh) Thus a two tiered or bi-level redemption process was established 10 years ago.
(DariusBarazandeh) 6 month redemption period applies to NON HOMESTEAD and NON AGRICULTURAL EXEMPT properties. Everything else is 2 years.
(davechen) When I bid on a property, I understand that sometimes there are other taxes that are due (that I would have to pay). When I successfully bid on a property, which property taxes are "nullified"?
(DariusBarazandeh) The rate of return for the non-homestead and non-ag exempt is a full 25%
(DariusBarazandeh) basically any other property taxes will be paid in your opening bid.
(DariusBarazandeh) unless...
(DariusBarazandeh) the taxing entity did not join in the tax suit.
(DariusBarazandeh) By law should not be able to bring a claim against you BUT (and I have dealt with this issue) they will!
(DariusBarazandeh) Typically it won't be very much so just pay them.
(DariusBarazandeh) Now there are other liens that could survive foreclosure...again an area avoided by most authors on this stuff...I still don't know why
(DariusBarazandeh) perhaps it does not sell that many books.
(DariusBarazandeh) I cover these in my course...generally they deral tax liens, state tax liens (these are the ones for unpaid sales tax), materialmen's liens, and some child support liens.
(DariusBarazandeh) This is an issue that you can handle and you should evalute properties accordingly.
(DariusBarazandeh) The key to this process is getting the system in place to...
(DariusBarazandeh) quickly evalute properties and make purchases. Honestly, how many houses do you need to retire.
(rlfindley) How does a bankrupcy affect the tax lein?
(DariusBarazandeh) It will affect the tax lien and more specifically the tax lien purchaser
(DariusBarazandeh) First, if it occurs after you buy the tax deed it is likely they won't redeem. (i.e., the house is yours!).
(DariusBarazandeh) This is because it is likely that the trustee of the estate will get tied up in administering the bankruptcy estate...
(DariusBarazandeh) and it may be a while before they get to this property.
(efrem) but you can;'t do anything with the property for 2 years except collect the 25%-50% if they want it back
(DariusBarazandeh) if you follow my course you will avoid properties with a 2 year redemption.
(efrem)i see
(DariusBarazandeh) Unless it is a really good deal. This is because I simply don't want a house sitting around for 2 years and I can only fix a hole in the roof.
(DariusBarazandeh) You are correct because the trustee will have to pay you the redemption rate of return if its a 2 year redemption.
(DariusBarazandeh) I have not said it yet but the rate is...
(DariusBarazandeh) 25% if redeemed during the first year or
(DariusBarazandeh) 50% if redeemed during the second year.
(akovski) Is it ever worth it to try to get the person to sell you their option to redeem the house?
(DariusBarazandeh) the best rate in the U.S.
(DariusBarazandeh) I do know of investors who purchase the right to redeem from the owner.
(agkatz) Hello...?
(DariusBarazandeh) it is a contractual right that can be sold to another. It can be a tactic you could use...I personally don't do it because it doubt it would be enforcable in court.
(TRandle) How do I find out the process for my state if I'm not in Texas?
(DariusBarazandeh) Well you can wait for my new course which will be available in 1 month.
(agkatz) I want it. How can I get it?
(DariusBarazandeh) It will cover tax certificates and the 20 best investment states.
(tcook44) Will that further update TX or is the current one the best for us in this state
(DariusBarazandeh) From the preliminary reviews I have gotten it is going to be phenominal.
(DariusBarazandeh) NO, listen this Texas product is by far the best of breed.
(DariusBarazandeh) It is devoted totally to this state and you will have to look far to find so much step-by-step detail.
(DariusBarazandeh) Let me take a second and tell a story about this course on Texas.
(DariusBarazandeh) As I formulated this course I not only learned from the cumulative experience of over 20 experienced tax sale investors, 5 municipal collection law firms, and over 25 tax office personnel, but from my own tax sale investment background
(DariusBarazandeh) This product has become the highest rate tax sale guide in the United States.
(DariusBarazandeh) You will find more detail on Texas than anywhere else. You don't find alot of regional products because its easier to sell general products.
(DariusBarazandeh) This has the highest level of detail and beyond that a workable strategy that takes into account the law and the economic climate of Texas.
(DariusBarazandeh) Lastly, I will say that I update the product several times per year.
(Bob_Red) Will you ever do a live seminar in Texas?
(DariusBarazandeh) Yes I do give one on one consulting either by telephone or in person. You can come to my office.
(DariusBarazandeh) I have given a few but right now I am writing my next course and will only be giving one one one consulting.
(tcook44) Are you open to email questions after purchase of the course?
(DariusBarazandeh) Let me say that have an open door policy that is the way I have always been.
(DariusBarazandeh) I give people free email consulting for the lifetime they own the product.
(tcook44) Excellent!
(DariusBarazandeh) I answer my own phone, my own emails, and I write my own products.
(rlfindley) Have you ever had trouble obtaining homeowner's insurance on an investment property during the redeemption period?
(DariusBarazandeh) Typically not.
(DariusBarazandeh) Keep in mind the cost of insuring the property will be refunded to you upon the redemption.
(tcook44) Any particularly easy companies to work with in that regard?
(DariusBarazandeh) Again remember the topic of common law waste.
(DariusBarazandeh) I typically don't give out company names since standards and company policies tend to change.
(DariusBarazandeh) but you should not have much of an issue. If you do contact me and we can discuss some options.
(tcook44) Great, thanks
(DariusBarazandeh) I would not like someone to view this later on (like a couple years from now on the web) and take old advice on an insurance company
(tcook44) Wow, you ARE an attorney, huh? chuckle...
(lbaugh) what does your texas course consist of? books? tapes? video? and how do we get it?
(DariusBarazandeh) yes I am an attorney and focus on business entity selection, asset protection, and real estate law.
(DariusBarazandeh) I will also have some courses out on forming your corporation, and forming an LLC later this year.
(DariusBarazandeh) The product comes with 3 books and a worksheets.
(davechen) if we are out of state, what kind of research should we do on the prospective properties before physically inspecting the properties?
(DariusBarazandeh) Also anyone that purchases a product..not mine and invests in Texas in 2004 please contact me.
(DariusBarazandeh) There may be some slight changes to the Texas law that you need to be aware of. Since I am a member of the Real Estate, Probate, and Trust Division of the State Bar of Texas I know of some things in the pipeline.
(DariusBarazandeh) It might be awhile before other tax sale courses dealing with Texas make these updates.
(rlfindley) When should someone involve an attorney? I just wasted an hour (and I won't say how much money) on a real estate lawyer who didn't know anything about tax sales or asset protectio (DariusBarazandeh) Just contact me to be sure
(DariusBarazandeh) Well I know about it and you can hire my law firm.
(rlfindley) I'll be in touch.
(DariusBarazandeh) Listen you will need an attorney in my opinion to do the follow
(DariusBarazandeh) closing, reviewing corporation setup and LLC set up.
(DariusBarazandeh) If you have other issues you should hire a lawyer.
(StacyKellams) How often do you have to do a quite title procedure
(DariusBarazandeh) great question
(DariusBarazandeh) the suit to quiet title should be done only if you want to sell the house and get traditional financing for your buyer.
(DariusBarazandeh) Remember there are other techniques you can use to get cash out of the house.
(DariusBarazandeh) This is where one of the biggest issues I see with real estate investing comes into play.
(DariusBarazandeh) Most beginners are not made aware of everything out there as far as acquiring property and getting money out of properties.
(DariusBarazandeh) You need to realize that tax sale like anything else should just be one arrow in your quiver or just one technique you can use to get a good deal.
(DariusBarazandeh) Understanding how to use a lease option with a tax sale property turns a powerful technique into an even more powerful technique.
(davechen) If we are from out of state, what kind of research should we do on the properties (remotely) before traveling to Texas to physically inspect the properties?
(DariusBarazandeh) Most of the time people try to convince us that one technique is the greatest thing. The hot new thing that makes everything else obsolete
(DariusBarazandeh) Dave, great question...my appologies if I did not get to it earlier.
(DariusBarazandeh) You must do a couple things.
(DariusBarazandeh) You will have to visit Texas.
(DariusBarazandeh) I will not lie to you or make this sound sweeter to sell a book.
(DariusBarazandeh) You should get some preliminary information about...
(DariusBarazandeh) market value of the property, the back taxes
(DariusBarazandeh) Regarding tax sale activities as an out of state investor...It is a greater challenge than if you live in the state. The best thing you can do is start doing your online research. For example, go to www.publicans.com and start looking at listings.
(akovski) It seems like it would be a good idea to know....What is the procedure for redeeming a property?
(DariusBarazandeh) I also would like to add that I have added a FREE research page on my website, www.theinformedinvestor.com.
(DariusBarazandeh) yes thats true. Basically there a few things you want to keep in mind.
(DariusBarazandeh) 1) Don't contact the owner
(DariusBarazandeh) 2) Make sure the tax assessor collector has your current information (phone, address, etc.)
(DariusBarazandeh) 3) When the owner is ready to redeem they will contact the tax assessor not you. When you purchase the property at the sale they will get a notice indicating that it has been sold and they (the delinquent owner) can redeem the property by contacting the tax office.
(DariusBarazandeh) Another thing I cover in the course is...
(edmarj) I have heard that in TX the tax liens can be "bid up" and that the property owner, when they redeem owe you 25/50% on the moaunt you paid for the lien - not on just the amount of taxes owed?
(DariusBarazandeh) keeping track of expenses which will go toward your redemption amount. Right after you make a repair you should contact the tax office and make sure they have that expenses added to the file. That way when the delinquent owner redeems the tax office knows how much they should payu
(DariusBarazandeh) Great question and a technical point in the statute that makes Texas great.
(DariusBarazandeh) They must pay you the amout of the bid. If you bid up a $3,000 house to $5,000 then the interest charge is added to the $5,000.
(DariusBarazandeh) I have known people to bid up houses to make sure the owner can't redeem. Not smart. If equity prevails the court could overturn the sale as an invalid sale.
(DariusBarazandeh) Be honest and smart and you will do fine.
(tcook44) Just to clarify on the numbers above...the $3000 house you paid $5000 for...is the interest calculated on the former or latter?
(DariusBarazandeh) the interest charge is added to the price you pay at auction. Therefore the interest would be added to the $5,000.
(akovski) What does "if equity prevails" mean?
(edmarj) What is the competition like for bidding (up) liens in a large county like Harris or Dallas? Also - what would be a "reasonable" amount that you might bid up?
(DariusBarazandeh) Don't focus on those counties.
(DariusBarazandeh) too big.
(DariusBarazandeh) In the course I tell you to focus on medium sized counties. This is done because I have studies the demographics and auction characteristics and know that the big counties are not the places to get a good deal.
(edmarj) So the above principle works with smaller counties? Do the liens get bid up in smaller counties also?
(DariusBarazandeh) No..typically I don't find many people bidding in the smaller counties. In addition there are so many interesting deals on 'resales' or strike off properties there.
(DariusBarazandeh) I just cant buy all those houses...
(DariusBarazandeh) Let me say something else....in the next 4 years things will only continue to go up.
(DariusBarazandeh) there will be more delinquent taxes owned than in any other time in history.
(mcbotkin) If you bid up a property and the court overturns the sale as an invalid sale, do you get your money back?
(DariusBarazandeh) except perhaps the early 80's
(DariusBarazandeh) yes
(DariusBarazandeh) Let me say that any investment technique requires a good system and a good understanding on the law and how it affects what you do.
(DariusBarazandeh) Texas tax sales and tax certificates are no different.
(DariusBarazandeh) These are not designed to hurt you.
(DariusBarazandeh) They are designed to give the county a way to collect un-collected debt. More and more counties are going to use the procedure of selling tax certificates.
(DariusBarazandeh) in other states.
(edmarj) I am a (new) real estate investor in Harrris County and would like to know more about some of the houses I have found with taxes due on them. In one case in it around $100,000 on a $200,000 house. IF I could make a deal with the owner to buy the house would I have to pay the back taxes (apparently for some reason it has never been to the tax sale) all at one time or will the assessor office work out payments?
(DariusBarazandeh) Without looking at the EXACT details of the situation it is hard to say. But let me say this
(DariusBarazandeh) when you purchase the property you will step into the shoes of the delinquent owner. Provided that the owner has not gone too far into delinquency you should be able to pay them and perhpas enter into a payment plan
(DariusBarazandeh) Be careful with this an use you best judgment.
(DariusBarazandeh) Let me add something about market value since you say it is $200,000 house.
(DariusBarazandeh) You need to be careful when estimating market value...anyone who has been around real estate for long enough knowes that...
(DariusBarazandeh) appraisal district value figures are not accurate nor always up to date.
(DariusBarazandeh) Tax sale listings will use an appraisal district value figure. It may not be current not accurate. USE IT ONLY AS AN PRELIMINARY SCREENING TOOL
(DariusBarazandeh) You should drive around the block and get a realtor to do some comps
(tcook44) In a situation like the above, would you advise getting comps to validate your estimates?
(DariusBarazandeh) Does everyone know how to do that??
(TRandle) Let's make this the last question,please, and let Darius go. He's been here over an hour and a half. Thanks.
(DariusBarazandeh) basically find a house for sale. Call the realtor ask them the price...
(edmarj) Thanks - I know that is true but this is in a nice area and I can get comps - which I will do -the owners have abandoned the property (several years) but I think I can find them. BTW - I have your course and it is the best I have seen on TX tax liens.
(DariusBarazandeh) thanks
(DariusBarazandeh) let me finish this comp technique for those that might not know this
(DariusBarazandeh) then ask them to send you some comparable sales data because in your opinion the price seems too high.
(DariusBarazandeh) There are your compsl Cheap and effective.
(DariusBarazandeh) I would love another question...
(tcook44) What risks are involved in investing in tax sales
(DariusBarazandeh) Great question and I have a fantastic article that I have written which covers this. You can find it at this great s22:41] (edmarj) What is the deal on resales in Harris county - I know you recommend staying away from Harris county but since I live her I find a lot of properties here. I undersatnd that Harris county does not have a traditional struck off list??
(tcook44) Great, thank you!
(DariusBarazandeh) Let me tell you what I think....
(DariusBarazandeh) they are
(DariusBarazandeh) 1) additional liens that survive forclosure
(DariusBarazandeh) 2) smaller fees not included in the bid amount because the entites did not join in the suit ( I mentioned this earlier in the discussion)
(DariusBarazandeh) Bankruptcy is a risk when you buy a property in bankrupcy
(DariusBarazandeh) You need to do a quick search of the owners name in the Federal Bankrupcy records...online.
(DariusBarazandeh) Of course you should do that with any purchase.
(DariusBarazandeh) Lastly, DONT DO DEALS IN YOUR OWN NAME!!!
(rlfindley) If I exame the judgement, won't it tell me which liens survive forclosure? (assuming it's current).
(DariusBarazandeh) No it will not.
(DariusBarazandeh) according to statute we know what these are and if we use the title research methods in the course we can find them.
(DariusBarazandeh) That reduces risk.
(tcook44) Have you found other leins can sometimes be negotiated down like in doing short sales on foreclosures?
(DariusBarazandeh) of course.
(DariusBarazandeh) yes they can and it will depend on the type of additional fees we are dealing with.
(DariusBarazandeh) For example I have had luck with some HOA dues (home owner association fees)
(DariusBarazandeh) The state sales tax lien could also be negotiated down if its on the property.
(DariusBarazandeh) Generally you will find that I tend to overkill the risks that you will encounter.
(DariusBarazandeh) Don't be too scared of these things but use caution. I want everyone to enjoy investing in real estate and finding deals. Part of that is knowing what could go wrong and learning the methodology for dealing with it.
(edmarj) Think this got lat is the deal on "struck off" properties in Harris County - I understand that there are not really struck off properties since they all have to back to resale?
(DariusBarazandeh) I would not recommend trying to purchase properties in Harris County...
(DariusBarazandeh) but there are different procedures based on the county.
(DariusBarazandeh) I have found that we have 2 scenarios, First -
(DariusBarazandeh) you have strike off's which are those that have not sold. These will go back to the taxing entity which started the tax suit. These can be purchased by going to the tax assessor and making an offer. These are great deals especially if you follow the advice in the course about which counties you focus on.
(DariusBarazandeh) Then you have re-sales.
(DariusBarazandeh) Harris county tends to circulate the properties and take them back to re-sale because they figure they can collect more back taxes that way.
(anoptikon) Darius, whose name should deals be done in, if not your own? A corporation's possibly?......
(DariusBarazandeh) So in Harris County (which is the county that the city of Houston resides in) you don't get much on the strike off lists.
(edmarj) Is there anything that can be done about properties where the back taxes exceed the value of the property?
(DariusBarazandeh) Absolutely
(DariusBarazandeh) you should do them in the name of an entity.
(DariusBarazandeh) if you have done them in your own name and have a corp. or LLC then assign them to the corp.
(DariusBarazandeh) If the property has taxes higher than the value the Texas tax code says the taxing entity must sell it for the lesser of the two.
(DariusBarazandeh) If you can improve the value of the property do so...but wait till redemption has passed and the property is yours.
(DariusBarazandeh) If anyone has questions you can email mexenterprises@yahoo.com
(edmarj) Who actually determines the value/selling price?
(DariusBarazandeh) it is determined by the amount of back taxes and fees.
(edmarj) Thank you! great session!
(DariusBarazandeh) If the market value is lower than this figure the bidding will start at the market value.
(DariusBarazandeh) I would like to remind everyone that you can email me with questions....yes even if you have not bought a book from me.
(DariusBarazandeh) taxenterprises@yahoo.com
(TRandle) Darius, thank you very much for your time. This has been above and beyond and I know everyone is appreciative.
(akovski) How/where do you buy your books?
(DariusBarazandeh) I would also like to thank Tim Randle and REIClub.com for making this session a reality. This website really cares about getting the best information to is visitors.
(tcook44) Thanks, this was a great intro to your course!
(mcbotkin) thanks for your session!
(billest8) Thank you for the information.
(akovski) Thanks for all the info!
(DariusBarazandeh) Thank you everyone for the session...I truly enjoy working with people and helping.
(TRandle) That's it, folks. Thank you very much for participating. This session will be archived and available on the site before too long.
(edmarj) Is it possible to get a transcript of the session? I am a new member - will it be in archives?
(edmarj) OK!
(DariusBarazandeh) it covers some of the most important techiques to succeeding as a real estate investor.
(DariusBarazandeh) I want eveyone to succeed....and please email me at taxenterprises@yahoo.com
(DariusBarazandeh) Thanks and I think this will end the session.
(TRandle) okay, thanks much, Darius, say "bye" (smile) or we'll never leave
(DariusBarazandeh) bye and everyone please keep me updated on your investing career! (smile)
(TRandle) bye, folks, and thanks again for your time, signing off now
The author, Darius M. Barazandeh, Esq. is a licensed attorney in the state of Texas. In addition to his legal knowledge he has a Masters Degree (M.B.A.) in Business Finance and brings experience from numerous fields including tax sale investing, real estate construction, corporate finance, and business consulting. Frustrated by the lack of realistic information regarding tax foreclosure sales and other investments, he is "unlocking the secrets" to many of these creative investment methods with his unique 'clear cut' writing style, attention to detail, and legal knowledge.
Information contained within this article was not intended to be, nor should it be taken by the reader as legal, financial or tax advice. The above article was written for educational purposes only. If the services of a Texas attorney, or real estate mentor or coach are desired, please contact Darius Barazandeh or seek the services of another professional.
Copyright Notice
Copyright 2002-2008 All Rights Reserved.
Published with Permission of Author.
No part of this publication may be copied or reprinted without the express written permission of the Author and/or REIClub.com.
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