In real estate, some of the best opportunities are found in places others overlook. Distressed property investing is one such area, where properties with unpaid taxes or legal complications can hold untapped potential. At CORE Tax Deeds, our focus is on tax deed investing in Texas, where we combine experience, research, and discipline to uncover value in properties others might pass by.

This blog explains how our team identifies hidden value in Texas tax deed properties, why distressed assets require careful due diligence, and how our approach makes it possible for more investors to access this unique market.

What Are Distressed Properties?

A distressed property is typically one that has fallen behind on property taxes or mortgage payments. In Texas, when property taxes go unpaid, counties may eventually foreclose and sell the property at a tax deed sale.

Investors can participate in tax deed auctions in Texas, where the highest bidder wins the deed to the property, subject to redemption rules. Unlike tax lien investing, which involves buying the debt itself, investing in tax deeds means bidding directly on the property.

Distressed properties can include:

• Residential homes with unpaid taxes.
• Vacant lots that have sat idle for years.
• Commercial or agricultural land subject to foreclosure.

While these properties may carry risks, they also provide opportunities for those who know how to identify value.

How CORE Tax Deeds Finds Hidden Value

Finding value in distressed properties isn’t about luck — it’s about process. Here’s how CORE Tax Deeds approaches tax sale investing with a structured methodology:

1. Broad Market Coverage

With 254 counties in Texas holding auctions (often on the first Tuesday of every month), opportunities are widespread. Our team monitors both courthouse auctions and buy tax deeds online platforms to ensure we never miss viable properties.

2. Detailed Property Research

Before bidding, we conduct research to determine whether a property is worth pursuing. This includes:

• Reviewing county tax and title records.
• Assessing the neighborhood and comparable property values.
• Checking for existing liens or legal complications.

3. On the Ground Inspections

Whenever possible, our team performs property inspections or partners with local contacts. This step is critical to avoid hidden structural issues or occupancy problems.

4. Strategic Bidding

At auction, discipline is everything. We set strict bidding limits to avoid overpaying. This helps ensure that when we invest in tax properties, we’re acquiring them at a fraction of their potential market value.

5. Post Acquisition Management

Once a property is acquired, we secure, insure, and manage it. In some cases, properties are sold to wholesalers; in others, they’re prepared for retail resale. Our ability to adapt helps unlock hidden value while managing risk.

Why Distressed Properties Hold Potential

Distressed assets often sell at lower prices because they carry complications. For some investors, these complications are deterrents. But for experienced teams, they represent opportunity.

Examples of hidden value include:

• Location Potential – Even if a property is neglected, its land value may be high.
• Redemption Penalties – Texas law requires property owners who redeem to pay penalties (25% or more), providing investors with structured returns.
• Alternative Uses – Vacant or unused lots may be repurposed into income producing assets.

This is why investing in distressed Texas real estate can be attractive for those who understand the rules and conduct proper due diligence.

How CORE Tax Deeds Makes It Accessible

Traditionally, only accredited investors or those with significant capital could participate in Texas property tax auctions. Through our Regulation CF real estate structure, CORE Tax Deeds makes this market accessible to more people.

With our tax deed crowdfunding model:

• Investors can start with a low minimum investment.
• Funds are pooled across multiple properties for diversification.
• We handle the due diligence, bidding, and management.

This approach allows investors to explore real estate tax deeds without needing to attend courthouse steps or navigate complex redemption laws on their own.

Conclusion

Identifying hidden value in distressed properties requires experience, discipline, and a clear strategy. At CORE Tax Deeds, we’ve built a process for uncovering opportunities in Texas tax deed properties, while managing risks through due diligence and transparency.

For those who want to explore this alternative form of real estate exposure, our model makes it possible to invest in tax deeds through a regulated, accessible platform.

 

Disclaimer

This blog is for educational purposes only and should not be taken as investment advice or a guarantee of results. Tax deed investing involves risk, including possible loss of capital. Review our offering materials at invest.coretaxdeeds.com before making any investment decision.