Transcript:

Hey there, it’s Casey Denman here from TaxSaleAcademy.com. Thanks so much for joining me for this week’s question segment.

This week we’ll be answering a question from Milton: He wants to know, Can I Get a Loan on a Tax Sale Property?

First off, Milton, thanks so much for submitting your question.

There are two different answers to this and I’m not too clear which angle you were asking about so I’ll go ahead and answer both.

So, generally speaking, if you need a loan to BUY a tax sale property then that would need to come from outside of the tax sale setting. In 99% of the cases, the county or auction companies WILL NOT do any sort of financing or loans for you when you purchase a property through them. In my career I’ve seen just a couple of tax sale homes that did offer owner financing, but 99% of the time or more likely 99.9% of the time the county will expect full payment by cash, cashier’s check or whatever else they accept.

Now obviously, you could get an outside loan of some sort to fund that transaction. If you own real estate you could refi or get a HELOC and then take the money from that and invest it into a tax lien or deed. You could also get a signature loan, a rich uncle or family member loan, a friend loan, a loan from your friends at Visa or Mastercard or wherever else you can obtain capital. Then, of course, you can invest that as you desire. And I’ve gone over a number of different funding ideas on this channel, my podcast, and of course inside The Academy.

Now, the second angle is getting a loan on a tax deed property after you’ve already purchased it. Perhaps a refinance or maybe even selling it to someone who is using a loan, something like that. You can certainly do that, but it would be dependent upon what the bank or lender requires. Obviously, credit, income, all that kind of stuff, but also the condition of the title for that real estate will be important. They’ll do a title search and will expect title insurance to be issued to protect the lender when they make that loan. Since Tax defaulted properties can’t usually be insured immediately, this will likely be a problem. So you’d need to go through one of the curative measure in order to get title insurance on the property, in order for the lender to write a loan against it. Suit to Quiet Title, Tax Foreclosure Certificate Process and then there are a couple of others ways as well. Again, you can search the channel for more info on these or we discuss them in the academy.

So Milton, hopefully this has answered your question. If you have another question or anyone watching this video has a question, then feel free to post it down below in the comments and I’ll definitely answer it and I might just feature it in a weekly question video segment.

Thanks so much for watching today and don’t forget to grab your free copy of Tax Sale Playbook by going to TaxSaleAcademy.com. You can also join the academy at that same site, TaxSaleAcademy.com if you’re ready to get started today!

Take care!