TEXAS TAX DEED INVESTING

Why Texas? I thought this was only about Florida!
     Florida is a very investor friendly state that people all over the country including banks and hedgefunds flock to but it a big world out there !!  Texas presents a unique and potentially even more lucrative opportunity. While Florida offers a year-round Over-the-Counter (OTC) tax lien market with a guaranteed 18% return, Texas takes things to another level by offering a 25% penalty on their Redemptive Deed Sales.  The reason for emphasizing the term "penalty" is because in Texas, the 25% penalty applies immediately on day one—a significant advantage for investors. In a redemptive deed state like Texas, property owners who are delinquent on their taxes have only six months to redeem the amount of the bid plus the penalty. If they do not redeem the property within this period, the investor can acquire the property possibly with a clear title, often at a fraction of its market value.

     In Texas, everything is indeed “bigger,” and that applies to the returns investors can earn as well as the risks involved. While the potential returns are substantial, the process is more complex compared to Florida. Texas operates redemptive deed system, where the opening bid at the auction is the back taxes plus any fees.  The highest bidder wins. However, this system requires thorough understanding, and investors must be aware that there are additional complexities specific to the state, in particular, the process of their judicial system and what that means to what liens could survive the tax deed sale. 

     Investors interested in Texas must be diligent in researching the local laws, property specifics, and any issues that might affect the value or legal standing of a property. In a market as dynamic as Texas,