Those who are interested in investing in real estate should know that Texas provides some of the greatest real estate opportunities in the US. A beautiful state,Texas is known for its warm climate and country music, as well as the rich history and friendly people. By understanding some of the advantages of investing in Texas real estate, you can determine whether it’s a good idea for you or not.
Texas Laws Regarding Tax Sales
Texas offers some of the best laws for those who are interested in buying tax lien properties. This is, of course, the kind of sale that offers estates for the price of the back taxes present on them. With most of these sales, the homeowner can opt to purchase the home back after the investor’s purchase, by paying the back taxes.
However, in Texas, if you’ve paid for the estate and the homeowner wants to keep the sale from going through, they must pay you twenty-five percent interest for the first year and 180-day redemptions. There are some cases in which a two-year redemption will apply and the investor will receive a fifty-percent redemption penalty.
In addition to that, the homeowner must pay the interest on the actual amount paid at auction rather than the amount the property was offered for originally. So, if an auction presents a property and starts the bidding at $3,000 but the investor ends up winning the property for $10,000, the interest must be paid on the $10,000 rather than the $3,000.
Texas Offers Monthly Sales
One of the benefits of investing in this type of Texas real estate is that many counties hold a monthly sale rather than having one large yearly sale the way most other states do. In those states that offer yearly sales, investors are drawn from all over to take advantage of some seriously low priced properties. This means one thing for the investor who wants a piece of the action: competition. With Texas’ monthly sales, the draw is less so fewer investors turn up. This means that one investor who is truly interested in buying can find a great deal because there is less competition.
Rental Income
Another great benefit of Texas real estate tax lien sales is that the investor will receive any rental income that comes from the property immediately after buying it at auction. So, if there’s a tenant in the home who is paying monthly rent, the investor will receive that money at the next date the rent is due. The investor may choose to evict the tenant but may also choose to allow them to live there and pay rent, as a way of gaining another income stream.
There are many benefits to investing in Texas real estate, even for those who aren’t planning on simply “flipping” the properties and reselling them. With a little research on the properties up for sale, an investor can make a huge return on a property.
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