Baldwin County Foreclosure Tax Sale Investing


Presentation Description

Baldwin County Foreclosure Tax Certificate Sale Investing


Presentation Transcript

Baldwin County Alabama Tax Sale Investing: 

Baldwin County Alabama Tax Sale Investing …It’s time to invest!!!

Answers to the Top Questions about Baldwin County, Alabama Tax Sales: 

Answers to the Top Questions about Baldwin County, Alabama Tax Sales Tami L. Roberts Author and Broker Disclaimer: Tami Roberts is not an attorney, tax or securities professional and does not give advice in these areas.

Books by Tami Roberts: 

Books by Tami Roberts

What You Will Learn: 

What You Will Learn Pre-Auction Homework The Auction What does the winning bidder win? Tax Sale Investing Strategies How much should you bid? Pitfalls to Avoid and Common Myths Redemption Laws

What happens when you don’t pay your real estate taxes?: 

What happens when you don’t pay your real estate taxes?

Tax Collector gives list to Probate Judge: 

“…Such book shall be prepared in a neat and orderly manner either in a fair and legible handwriting or typewritten”

Problem 1:: 

Problem 1:

Problem 2:: 

Problem 2:

More Notice Provisions: 

More Notice Provisions

The Auction: 

The Auction Between hours of 10:00 am and 4:00 pm and can be continued from day to day as necessary Payment immediately The 5-day grace period

What you’re buying?: 

What you’re buying?

How much should you bid?: 

How much should you bid? Why do you care about the relationship between real estate taxes and property values? Because… Understanding the process keeps you from bidding too much at the auction.

Investment Strategies: 

Investment Strategies Make 12% on your money…guaranteed! Buy Rental Properties Buy Your Residence

Make 12% per annum: 

Make 12% per annum When you want to just make interest on the tax lien and do not want possession of the property; you might want to bid on high end properties or most likely to be redeemed. Redemption Price: Sales price plus 12% interest on the amounts of tax due at the time of auction, and on the portion of the purchase price that was less than or equal to 15% of the tax appraiser’s value.

Buying Rental Property: 

Buying Rental Property If your goal is to buy rental property at the auction; only bid on vacant property. The tax lien entitles you to immediate possession; however, if the former owner lives in the property the law says you can’t file an ejectment suit for 6 months and then they can demand a trial by jury…it can drag on and on and on…just don’t go there. Do not bid more than 6 months potential rental income for such a property. Include a special escape clause in your lease; in case the property is redeemed. specializes in helping investors maximize cash flow from rentals. Ask me for details.

Buying Your Residence: 

Buying Your Residence If you are looking to buy your residence; I would recommend bidding on vacant properties. It’s way too much hassle and time to get an ejectment order in Baldwin County. Until you have title, do not do any repairs unless you can prove they were absolutely necessary and keep the receipts.

Flipping Tax Sale Property: 

Flipping Tax Sale Property Traditional flipping is not easy with a tax sale property because you only have a tax certificate –and possession—for three years. No one will be able to borrow money from a bank to buy the property. However, you can sell the tax certificate as personal property, use a Bill of Sale not a quit claim deed to make it legal.

What if the former owner won’t leave?: 

What if the former owner won’t leave? Either party can demand a jury.

Lien Priorities: 

Lien Priorities

Adverse Possession: 

Adverse Possession No action for the recovery of real estate sold for the payment of taxes shall lie unless the same is brought within three years from the date when the purchaser became entitled to demand a deed therefore; but if the owner of such real estate was, at the time of such sale, under the age of 19 years or insane, he, his heirs or legal representatives shall be allowed one year after such disability is removed to bring an action for the recovery thereof; but this section shall not apply to any action brought by the state, nor to cases in which the owner of the real estate sold had paid the taxes, for the payment of which such real estate was sold prior to such sale, nor shall they apply to cases in which the real estate sold was not, at the time of the assessment or of the sale, subject to taxation.

Redemption (40-10-120): 

Redemption (40-10-120)

How To Redeem: 

How To Redeem

Determining value of improvements: 

Determining value of improvements

What can the tax certificate owner do?: 

What can the tax certificate owner do?



Title Insurance: 

Title Insurance

Properties Not Sold at the Auction: 

Properties Not Sold at the Auction Properties not sold at the county auction are transferred to the State’s Department of Revenue. (ADOR) Investors may buy tax certificates and tax deeds from the ADOR. LLC can help you buy properties from the state’s rolls. Ask me for details.

Buying Properties from State: 

Buying Properties from State

Yes, I’m Interested! What do I do now?: 

Yes, I’m Interested! What do I do now? will represent a limited number of bidders at the Baldwin County tax sale auction on June 16, 2009. You must submit an application with a buyers broker service fee of $199 before June 12, 2009. The fee increases to $499 on June 13, 2009. Once your application is accepted, I will personally contact you for a 30 minute meeting to go over your application and specific buying criteria. Request the application:

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