I recently read a blog post on a popular real estate blog about the advantages of investing in Texas. The title of the post was “Why Investors Love Texas.”
This article pointed out the advantages of investing in Texas but they missed a couple of important points. They claimed that Texas has tax lien sales every month. But in fact Texas is a redeemable deed state, not a tax lien state, so you are actually purchasing the deed to the property at the tax sale.
They do point out 2 other advantages to investing in Texas. The fact that you receive a 25% penalty instead of interest. So that no matter when the lien redeems you receive 25% on your investment – it’s not an annualized interest rate as it is with tax lien states. The second advantage is the short redemption period in Texas – 6 months for non-homesteaded and non-agricultural properties. Continue reading
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