Will you play hold or raise with your tax deed investments?


Many tax deed investors buy with the intention of holding their investment for four years in the hope there are no challenges to their title. If after the statutory period they have clear title then their options open up to refinance or sell on. But there are alternatives to holding property for four years that can represent a significant raise in your investment game.

Whether you are a serial investor who has built up a portfolio of tax deed properties that you are holding, or just have one property, you carry all the risks. That risk is in the day-to-day costs and expense in owning the homes including maintenance, repair and replacement, taxes, windstorm insurance, HOA dues, rental difficulties and on top of that you are betting on volatile market conditions to preserve the capital in your investment.

If you can quickly and efficiently clean the title of your tax deed properties you create the opportunity to release your capital to reinvest and, crucially, know that your title is secure and unchallengeable.

With a clean title you certainly have the option to sell on your investment property. But what about the refinance route? With clean title, you can refinance your investment at the current historically low rates, not only releasing the capital you used to buy the property, but also to release the cash you have tied up in rehab work. After refinance you get to keep the property in your portfolio if that is what you wish AND are back in funds to buy more.

By working with cleartosell.com to access our innovative, time saving and cost effective systems that determine the clarity of title in 20 days, in just a month from now you can be ready to release your capital and raise your investing game.

October 22, 2014

Posted In: Tax, Tax-Deed

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Quiet title action takes too long and costs too much

Quiet Title Quiet title actions were not originally designed for the complexities of debarring those clouds that can be found on title after a tax deed sale.  It is a judicial process intended for much simpler resolutions of title issues such as incorrect entries on title deeds, or incorrect spellings, dates, etc.

Because of the foreclosure debacle, the due process of quiet title actions has been stretched to the limit.  In recent months, we are seeing judges apply far more scrutiny to each case.  We frequently see judges requiring extensive evidence of the attempts to serve related parties before they will allow service by publication.  We are finding it necessary to not only evidence that we have tried to serve related parties at their primary home, their second home, their place of work and anywhere else they could plausibly be; but also to evidence that these attempts to serve have occurred at varying times of the day, and in some cases multiple times of the day and night.

All of this means that the costs associated with quiet title action are rising dramatically, and the time periods from start to finish are extending beyond reason – with many cases now spanning a year or more.

Quite rightly, attorneys can only give a flat rate quote for their professional fees and then must recoup their costs and expenses on top.  These costs and expenses are unknown and can vary greatly depending on the number of related parties, and the complexity of service of process.  One recent case required the service of process upon 16 heirs spread across the US and Europe.  We are aware of cases where the attorney’s fees have been doubled by the costs and expenses.

So what can be done?  Well, if quiet title action is your preferred way forward, then at least get a good estimate of the total time and total costs before you instruct your attorney.  Insist that a Foreclosure report be studied to assess the number of related parties.  This will help to estimate your costs, but you will still be at risk of significant cost escalations if the attempts at service become complex and protracted.

Our view?  Quiet title actions will become too expensive and too time consuming for those with a desire to turn a profit from their investment in a tax-deed property.  Faster and more cost effective ways such as www.cleartosell.com will emerge as the normal procedure.

October 14, 2014

Posted In: Quiet Title, Tax-Deed

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