Alabama Tax Sale Investing

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Alabama Tax Sale Investing by Mind Map: Alabama Tax Sale Investing

1. Have you purchased tax properties before?

1.1. Yes

1.1.1. Awesome. Please email [email protected] Name (Individual/Entity (name to transfer tax certificate/deed) Mailing Address (Next years tax notice will be sent) Phone Number Email Address

1.1.1.1. Once we receive the info we will send you a confirmation email to insure we have spelling correct.

1.1.1.1.1. Then we will set up appointment to sign and finalize paperwork.

1.1.2. Looking for more info?

1.1.2.1. We are here to help. 1. Please read through this whole document. 2. If you still have questions. You can call our office at Anderson Realty Group LLC Monday - Friday 9am to 4pm 205-235-1050

1.2. No?

1.2.1. No worries. We are excited you are interested in buying a tax certificate or deed. First we need to cover the basics for you to know the risks and rewards that come with tax sale investing.

1.2.1.1. Rules before we start. 1. This is an investment - don't use your rent money. 2. Expect the owner to redeem. 3. Don't fall in love with the house.

1.2.1.1.1. Why is this for sale? When someone doesn't pay property taxes the county still needs the money to operate, so they list the property in the newspaper for auction. After 3 weeks of being listed in the local paper, they auction the property (tax certificate) somewhere around May.

1.2.1.1.2. Timeline After the sale a receipt is issued by the county (they hold the certificate) which allows possession IF the property is abandoned. After 3 years the tax purchaser files with the Probate Court (minimal fee) to have the certificate changed to a deed.

1.2.1.1.3. Cert Vs. Deed They are very similar: The main difference is that all legal fees are covered with a deed, with a cert the legals are covered only if you file the ejection first/ start legal first.

1.2.1.1.4. What happens when the owner wants to redeem?

1.2.1.1.5. What are they required to pay? 1. Any taxes that have been paid. 2. The value of the preservation improvements (and when we say "value" it means how much the property value increased. As an example, the house is worth 100k retail, and the house is worth 30k in its current state, and you make the improvements and bring it back to the retail value, they would need to pay the 70k as it is the improved value). 3. Any insurance paid . 4. Legal fees.

1.2.1.1.6. What is the difference between a set price and open bidding? On some properties there are only 1 or 2 buyers, thus the amount listed is the minimum. However, sometimes there are really good properties which become available, and to be fair to everyone, we open it up to bidding (generally more than 5 or more people asking about it or wanting to move forward at once).

1.2.1.1.7. How do I move forward?

1.2.1.1.8. What is your goal for the property?

1.2.1.1.9. What happens to the other liens or mortgages? Depending on what direction you take (see Investment Categories above).

1.2.1.1.10. What if I am out of state?

1.2.1.1.11. When can the owner redeem?