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%