How can understanding the nuances of tax liens and foreclosure processes turn distressed properties into lucrative investments?

In this episode, host Angel Williams explores the topic of tax liens when it comes to non-performing notes with guest speaker Kristin Gerst. They delve into the complexities of investing in tax liens and the potential pitfalls to be aware of. From understanding the right of redemption to considering property condition and after-repair value, they provide valuable insights for investors. They also discuss the differences between judicial and non-judicial states and the importance of researching eviction processes in different areas. Whether you're new to note investing or looking to expand your knowledge, this episode offers practical advice and strategies.

 

Kristin Gerst is the Managing Director at Capricorn Mortgage Investments. Capricorn Mortgage Investments buys high interest rate mortgages from small business owners and companies and sells them to large institutional buyers. 

(00:00 - 08:23) Title: Tax Liens Demystified

 

  - Exploring the concept of tax liens and their potential for investment.

  - Understanding the right of redemption and its impact on investment strategies.

  - Factors to consider when assessing the value of tax liens, including property taxes and vacancy rates.

 

(08:24 - 18:45) Pitfalls of Non-Performing Notes

 

  - Considering the limitations of investing in non-performing notes and the inability to inspect properties.

  - Assessing property condition and estimating repair costs in non-performing note investments.

  - Analyzing borrower behavior and the likelihood of loan modifications or non-payment.

 

(18:46 - 26:57) Judicial vs. Non-Judicial States

 

  - Understanding the differences between judicial and non-judicial states in the foreclosure process.

  - Exploring the length of foreclosures and the need for court approval in judicial states.

  - Identifying non-judicial states that may pose challenges in eviction processes and timelines.

 

(26:58 - 35:20) Researching Foreclosure Timelines

 

  - Highlighting the importance of researching foreclosure and eviction timelines at the city and county levels.

  - Considering factors that may impact foreclosure and eviction processes in different areas.

  - Making informed decisions about purchasing non-performing notes based on foreclosure and eviction timelines.

 

  - Exploring potential sources for non-performing notes, such as small banks and credit unions.

  - Building relationships with asset managers and specifying requirements for non-performing notes.

  - Navigating the process of bidding and evaluating non-performing notes for potential investment opportunities.

 

Quotes:

 

- "Property condition and after repair value are crucial factors to consider in non-performing note investments." - Kristin Gerst

 

- "Understanding the differences between judicial and non-judicial states can significantly impact your foreclosure timelines." - Kristin Gerst

 

Connect with Kristin:

LinkedIn: https://www.linkedin.com/in/kristin-gerst-a2a6a66/

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