Texas Tax Sales – June 2014 Auctions Prepared for: Peloton Commercial Real Estate By: Blythe Chambers
Jan 20, 2016
Texas Tax Sales – June 2014 AuctionsPrepared for: Peloton Commercial Real Estate
By: Blythe Chambers
Chronology of Contents
• U.S. Map of Tax Lien, Tax Deed, and Redemption Deed States
• Texas State Tax Sales & County Map
• Typical Due Diligence Process
• Tax Sale List Information
• Commercial Property Tax Sale Examples – Harris Co. June 03, 2014 Auction
• Example Preliminary Due Diligence Per Property
United States Tax Sale Designations
Deed Redemption States
Both Lien & Deed States
Tax Lien States
Tax Deed States
Texas is a Tax Deed Redemption State• Oral auction sheriff/constable sale
format, no online bidding
• First Tuesday, each month, at courthouse steps
• Highest bid wins auction
• Purchasing the deed to the property
• Given a Sheriff’s Deed shortly after auction
• Can occupy, charge rent, evict tenants, treat as own immediately
• 6 month redemption on non-homestead
• 25% interest earned on total bid amount, if redeemed
• Every county has its own rules!
Due Diligence
Step 9: Attend Auction & Bid
Step 8: Secure Cash or Cashier’s Checks
Step 7: Register & Determine Max Bid
Step 6: Check Lists Daily and Update
Step 5: Research – County records, owners, property history, photos, title search, demographics
Step 4: Organize Data
Step 3: Obtain Lists, Review in Depth, Cherry Pick
Step 2: Determine Strategy
Step 1: Obtain and Submit Proper Documentation
The Lists• County lists can vary widely
• Some lists don’t include addresses, rarely are there photos
• Lists change daily and are not sortable
• The list on auction day will almost always be different than the final online list
• Sifting through takes time, patience, and keen data organization
• There are two other types of lists: Resale & OTC
• While there are clues, lists do not distinguish commercial from residential, easements, drainage ditches, zoning, or buildings from lots – only research does
Commercial Tax Sale ExamplesPrepared for Peloton Commercial Real Estate
Harris County Auction – June 03, 2014
Current Tax Sale Examples – Harris County, TXAuction Date: June 3, 2014
• Data has been hand picked off multiple lists containing hundreds of properties
• Cherry picked data has been organized in an Excel spreadsheet and bid:value ratios calculated
• Additional due diligence data not on lists has been sourced and entered for evaluation
• This results in 7 potential commercial tax sale properties:
• Three office properties, one industrial, one for car sales, and one for auto racing mechanics• One mixed-use retail property featuring gas station and convenience store• One pharmacy• One commercial lot adjacent to tax sale property office of same ownership• One church/school/community center – easy conversion
10526 Tanner Road, Houston, TX 77041Occupied & DBA: “Zippy’s Auto Sales”
Preliminary Property Data
10526 Tanner Road
10526 Tanner Road
Market Value Estimate $280,036
Adjudged Value $271,159
Valuation Near market
Sqft. Building 7,800
Lot Size 0.65 acre
Occupant: Zippy’s Auto Sales
Owner or Tenant: TBD
Ownership Donway, LTD fka Dorway LTD
Ownership Notes
Last Sold 01/02/1988
Selling Price TBD
Title Notes/Other Liens TBD
2014 Tax Assessment TBD
Delinquent Tax Years TBD
Minimum Bid $1,575.96
Bid:Value 0.58%
8902 Airport Blvd., Houston, TX 77041Occupied & DBA: “Exxon Mobil” or “Gulf”
8902 Airport Blvd.
Preliminary Property Data
8902 Airport Blvd.
Market Value Estimate $612,831
Adjudged Value $556,470
Valuation Undervalued
Sqft. Building 7,000
Lot Size 0.68 acre
Occupant: Exxon Mobil or Gulf
Owner or Tenant: TBD
Ownership Stephen Truong’s Enterprise, Inc.
Ownership Notes Dissolved in 2002
Last Sold 03/23/2007
Selling Price $1,447,040.00
Title Notes/Other Liens TBD
2014 Tax Assessment Unknown – Missing County Data
Delinquent Tax Years Unknown – Missing County Data
Minimum Bid $97,507.51
Bid:Value 17.52%
10805 Market Street Road, Houston, TX 77029Occupied & DBA: “Jacinto Pharmacy”
10805 Market Street Rd.
Preliminary Property Data
10805 Market Street Rd.
Market Value Estimate $98,598
Adjudged Value $89,000
Valuation Undervalued
Sqft. Building 3,243
Lot Size 0.23 acres
Occupant: Jacinto Pharmacy
Owner or Tenant: Owner
Ownership McGinty & Muldrow Corporation
Ownership NotesMay own another pharmacy
location
Last Sold TBD
Selling Price $75,594
Title Notes/Other Liens TBD
2014 Tax Assessment TBD
Delinquent Tax Years TBD
Minimum Bid $13,147.51
Bid:Value 14.77%
5101 Navigation Blvd., Houston, TX 77011Vacant
Adjacent lot at 5115 Navigation Blvd., same ownership, also up for tax sale.
See next listing.
5101 Navigation Blvd.
Preliminary Property Data
5101 Navigation Blvd.
Market Value Estimate $289,244
Adjudged Value $87,613
Valuation Undervalued
Sqft. Building 9,464
Lot Size 0.23 acres
Occupant: Vacant
Owner or Tenant: N/A – prior was tenant
Ownership Prajna Investments, Inc.
Ownership Notes Multiple properties at auction
Last Sold TBD
Selling Price $319,200
Title Notes/Other Liens TBD
2014 Tax Assessment TBD
Delinquent Taxes TBD
Minimum Bid $12,560.57
Bid:Value 14.34%
5115 Navigation Blvd., Houston, TX 77011Business parking lot adjacent to 5101 Navigation
This is the business parking lot adjacent to
5101 Navigation and with same ownership.
5115 Navigation Blvd.
Preliminary Property Data
5115 Navigation Blvd.
Market Value Estimate $20,000
Adjudged Value $20,000
Valuation Market Rate
Sqft. Building 0
Lot Size 5,000 sqft
Occupant: None
Owner or Tenant: N/A – formerly used by tenant
Ownership Prajna Investments, Inc.
Ownership NotesLot adjacent to 5101 Navigation
Bl.
Last Sold TBD
Selling Price TBD
Title Notes/Other Liens TBD
2014 Tax Assessment TBD
Delinquent Tax Years TBD
Minimum Bid $1,461.51
Bid:Value 7.31%
14120 Stuebner Airline Rd., Houston, TX 77088Occupied & DBA: “Empire Autosports”
14120 Stuebner Airline Rd.
Preliminary Property Data
14120 Stuebner Airline Rd.
Market Value Estimate $226,248
Adjudged Value $227,000
Valuation Market
Sqft. Building 4,000
Lot Size 0.6888 acre
Occupant: Empire Autosports
Owner or Tenant: TBD
Ownership Kenneth Narinesingh etal
Ownership Notes TBD
Last Sold TBD
Selling Price
Title Notes/Other Liens TBD
2014 Tax Assessment TBD
Delinquent Tax Years TBD
Minimum Bid $33,058.76
Bid:Value 14.56%
5208 Noble St., Houston, TX 77020Vacant: Church/School/Community Center
5208 Noble Street
Preliminary Property Data
5208 Noble Street
Market Value Estimate $267,305
Adjudged Value $264,127
Valuation Market
Sqft. Building 7,200
Lot Size TBD
Occupant: Vacant
Owner or Tenant: Former tenant – was bank owned
Ownership B. Brothers Homes, Inc.
Ownership Notes Possible foreclosure purchase
Last Sold TBD
Selling Price TBD
Title Notes/Other Liens TBD
2014 Tax Assessment TBD
Delinquent Tax Years TBD
Minimum Bid $36,799.56
Bid:Value 13.93%