Here is a video from WBAL channel 11 news. The city to sell properties behind on taxes. ( It’s only about 3 min long, including the commercial)
I was expecting it to be another piece bashing investors and tax lien buyers. It was actually more about the size of the tax sale list in yesterdays Baltimore Sun paper and the incompetence of the city. It shows investor Jason Calimer helping the city by renovating properties that he got through tax sale in a distressed area.
Real estate investors, landlords, tax sale investors, ground rent owners etc. are often portrayed as bad guys. It’s nice to see a piece that presents us in a good light.
Happy viewing,
Ned
Get FREE investing tips and bargain wholesale properties via e-mail.
4 responses so far ↓
1 MoAL // Mar 22, 2010 at 12:44 pm
It seems to me that the “big investors” end up with all the tax certs because they have “big money” to place higher bids. Especially in the better areas. Can I really be successful with $3000-5000?
2 Ned // Mar 22, 2010 at 2:14 pm
MoAL,
Big investors get the most liens but they don’t necessarily get the best deals. If you had $5million a 5% return would give you $250K a year. You could probably live on that, right? Conversely It is exactly because they have $5 million they have to accept mediocre returns. It is hard to find $5M worth of killer deals in tax sale.
Smaller investors can do well in tax sale by being smarter with their money and their bids. If you only have $3-5,000 you only need 1 or 2 winning bids. Make sure they are good bids (i.e. low).
3 MoAL // Mar 22, 2010 at 2:55 pm
Thanks Ned! Another question please, if you don’t mind :)… Are vacant home certificates usually redeemed? And is it true that you can foreclose after 60 days on vacant homes if not redeemed? Well I guess that’s 2 questions 😉
4 Ned // Mar 22, 2010 at 3:07 pm
MoAL, thanks for being a regular reader and commenter. I hope you stick around for a while.
Yes vacant homes usually redeem but generally at a lower rate than occupied homes. In Baltimore city you can start foreclosure after two months if you get a “Certificate of Substantial repairs” This will cost $100, the charge is for the inspection and it’s $100 even if they decide not to give the certificate to you.
Also this comes at the very time when most certificates start to redeem so you could be out $100 because of the timing of the redemption. Off hand I can’t tell you where to get one. Because it has been a hassle I haven’t bothered that last couple of years.