second lecture part 7

What is the first step when investigating a property for tax deed acquisition?

Look at the title.

What does a title report typically contain?

Information related to ownership, liens, and encumbrances on a property.

What should you do if the title report is lengthy?

Consider calling code enforcement to verify internal conditions before spending too much time on it.

What is a common cost to obtain your own title report?

About $50.

What online resource can be used for title searches?

Easytitlesearch.com.

What might happen if title mistakes are made during property acquisition?

You might lose your investment with no possibility of getting your money back.

What is 'caveat emptor'?

It is a Latin phrase meaning 'let the buyer beware', indicating that the buyer is responsible for checking the quality of goods before purchasing.

Are nuisance fines typically a big concern for properties?

No, they often involve minor issues like overgrown grass or trash.

What are the potential fines for nuisance complaints?

Fines could reach $100 per day for two years.

What should you check regarding demolition or excavation liens?

These can be serious and may add significant financial burden to a property.

What is an example of a horror story in tax deed acquisition?

Winning a bid for $20,000 but discovering a $50,000 demolition lien attached to the property.

What is an important action to take before bidding on a property?

Call code enforcement to assess potential liabilities.

What is a strategy for managing properties with federal tax liens?

Investors can wait out the lien period and rent the properties until they sell.

What can happen if a property has child support or state restitution liens?

These liens can survive and need to be dealt with when selling the property.

What is the role of a quiet title action?

It legally establishes clear ownership of a property by notifying all potential claimants.

What should you do if you want to sell a property with a tax deed?

You may need to take additional steps, like a quiet title or title insurance.

How does Clear2Sell operate regarding properties in Florida?

They facilitate quiet title actions and provide immediate title insurance.

What percentage do you want to make on a deal typically?

30% profit margin is often sought after.

What fees should be considered when calculating the maximum allowable offer?

Title company fees, taxes, and any lead expenses.

What is a transactional fund?

A system that allows you to tie up a property while seeking funding for it.

What should be done to ensure you can sell a property quickly?

Understand local market conditions and how to engage potential buyers.

What should you do if the property you want to bid on is unseen?

Look at online resources or hire someone to assess its condition.

What are the risks associated with fix and flip projects?

Permitting delays and market fluctuations can significantly reduce profits.

What is the exit strategy for investment properties?

Plan for either renting, flipping, or holding for long-term appreciation.

What does it mean when a state property process is judicial?

It indicates a legal process that must be followed to clear ownership disputes.

What is important about being registered to bid in Texas?

Registering allows you to bid on properties across multiple counties without additional registrations.

What is a key difference in how Texas handles property auctions?

Texas has a nondisclosure statue that affects how property sales are reported.

What is the relevance of lawsuit notices in Texas property acquisitions?

They ensure legal notifications are sent to all relevant parties before auction.

What should you do to avoid errors when bidding on properties in Texas?

Always obtain a title report that confirms all parties were notified of the auction.

What did the speaker suggest about finding buyers for lots?

Identify cash buyers who are actively looking for lots to increase your chances of closing a deal.

Why is understanding a maximum allowable offer essential?

It helps ensure you don’t overpay for a property and can maintain a profit margin.

What is the importance of calculating after deducting fees?

To ensure your profit remains intact and to cover unexpected costs.

What is one tool mentioned for pulling comparable property data?

PropStream.

What should a cash buyer’s offer be based on?

The price they would be willing to pay for similar properties in the area.

What happens if you miss out on a property at auction?

There are usually multiple auctions; you can find another opportunity.

What is an example of a flexible investor approach?

Being adaptable to different types of property and investment strategies.

When conducting real estate transactions, what does it mean to have 'skin in the game'?

Investing a personal financial stake into the deal to share risks with lenders.

How does one typically structure a hard money deal?

By paying a percentage of the total deal upfront and additional interest monthly.

What is crucial when dealing with fix and flip projects?

To move quickly while factoring in all potential risks and costs.

What is one disadvantage of a fix and flip project?

Permitting issues can halt progress and incur additional costs.

What is the purpose of a property lien?

To secure a debt related to the property that must be settled before ownership changes.

Why might a property owner avoid selling to certain buyers?

They may not want to allow someone to assign the contract to a new buyer without oversight.

How can successful wholesalers leverage their connections?

By establishing relationships with builders and cash buyers for future deals.

What should be avoided during the bidding process?

Getting overly emotional or bidding beyond your pre-established budget.

What advice was given about making initial offers?

Set your offer based on calculated profit margins and stick to it.

What benefit can arise from networking at real estate events?

Building a local team of professionals including attorneys, agents, and lenders.

What type of bidding strategy was discouraged?

Bidding without proper due diligence and information.

When is a good time to call code enforcement?

Before you finalize a bid to understand any potential issues with the property.

What factors influence mortgage survival in property acquisitions?

The priority of liens and permits that may be attached to the property.

How does market conditions affect fix and flips?

Market downturns can drastically reduce the projected profit margin.

What is the simplest way to ensure the security of property ownership?

Acquire a clear title and address all outstanding liens or liabilities.

What is essential when calculating maximum allowable offers?

Include desired profit margin and all potential costs associated with the property.

What kind of properties can significantly benefit from assignment deals?

Properties with clear ownership and no outstanding legal disputes.

When is it advantageous to conduct due diligence?

Before making bids to ensure you are fully informed of potential liabilities.

What role does a transactional fund play in real estate?

They provide financing options for investors without upfront costs.

How can good negotiation improve property deals?

By allowing investors to secure prices below market value, increasing potential profits.

What variables should be included when estimating repair costs?

Labor, materials, and any permits necessary for renovations.

Why is visibility important in a tax auction?

It allows investors to grasp the competition and property fit before bidding.

What is a good tactic when assessing similar properties?

Research recent sales and offers in the area to gauge market value.

What approach can sometimes expedite order processing?

Paying for rush services to get critical reports or assessments faster.

What aspect of property investment needs continuous learning?

Market trends, title laws, and auction procedures.

Why is a team's expertise valuable in real estate?

They can provide insights and assistance in navigating complex transactions.

What can signify a viable investment option?

Properties that have liens but can also generate rental income.

What outcome may occur when properties are sold at online auctions?

The chance for more competitive prices and faster transactions.

What is crucial in property evaluations to ensure solid investments?

Accurate assessments of values and recognizing potential risks.

What should all potential buyers be aware of?

The potential for hidden costs and how they can impact the overall investment.

How can tax lien investors create value from distressed properties?

By acquiring and rehabilitating them for resale or rental.

What distinguishes little-known properties from mainstream options?

They often have less competition and can yield better returns.

What is recommended after observing property auctions?

Continue monitoring market changes and refine bidding strategies accordingly.

Why check lien statuses before bidding on properties?

To avoid unexpected financial obligations that could affect profit.

In what situations might an attorney be necessary?

For handling complex titles or disputes that arise during transactions.