La Salle County, Texas Redeemable Tax Deed Investing Guide

Introduction: Why This Guide Matters

La Salle County sits in South Texas along the busy I‑35 corridor south of San Antonio. The county covers more than 1,500 square miles of rolling brushland and ranches and is home to the historic town of Cotulla. Because Texas allows investors to purchase redeemable tax deeds, La Salle County’s tax sale auctions offer an alternative way to invest in real estate and earn high returns. This article explains how the county conducts these sales and answers the most common questions investors ask.

What Are Texas Tax Sales?

In Texas, counties sell redeemable tax deeds rather than tax lien certificates. When property owners do not pay property taxes, the county sues to foreclose its tax lien. If a court grants judgment, the county sheriff or constable auctions the property to the highest bidder. The buyer receives a redeemable deed, meaning the original owner can redeem the property by paying back what the buyer paid plus a statutory penalty. Investors gain the right to take possession of the property if the owner does not redeem within the redemption period.

Important Details at a Glance

Key Point	Summary
Tax Sale Type	Texas sells redeemable tax deeds, not lien certificates. The buyer holds title but must wait through a redemption period.
Typical Sale Date	Auctions occur on the first Tuesday of certain months, usually two or three times per year. An upcoming sale was listed on April 1 (first Tuesday of April) at 10 AM.
Redemption Period	Two years for homesteads, agricultural land or mineral interests; 180 days for all other property.
Interest/Penalty	Owners must pay investors a 25 % penalty on the amount the investor paid during the first year, or 50 % during the second year.
Bid Procedure	Bidding starts at the lesser of the judgment plus costs or the assessed value. The highest bidder wins. La Salle County uses a premium bid system where bidders bid up the price.
Deposit/Payment	The buyer must pay the full amount on the day of sale by cashier’s check or money order. The county requires a written statement showing the bidder owes no delinquent taxes.

Fun Facts About La Salle County

• Historic roots: The county is named for René Robert Cavelier, Sieur de La Salle, a French explorer.
  
• Ranching and oil: About 90 % of the land has been used for ranching and farming, with livestock contributing 87 % of agricultural income. The county also lies within the Eagle Ford shale region and produces oil and natural gas.
  
• Cotulla’s connection to LBJ: The Brush Country Museum includes the restored Welhausen School where future president Lyndon B. Johnson taught in 1928–29; exhibits showcase early‑20th‑century ranch life and a replica kitchen and doctor’s office.
  
• Geography: The county spans 1,517 square miles with rolling mesquite and brush; most of it drains to the Nueces River, while the Frio River drains the eastern part.
  

Attractions & Economic Highlights

La Salle County offers a mix of history and outdoor recreation. The La Salle County Courthouse in Cotulla anchors the downtown square and is part of the Texas Main Street program. Nearby attractions include Veterans Park and the Tin Man Water Tower. The Brush Country Museum displays artifacts and photographs from the county’s ranching heritage, including the Welhausen School and vintage household rooms. The county’s economy still relies on ranching and agriculture, while oil and gas development from the Eagle Ford shale and transportation along Interstate 35 support job growth.

Why La Salle County Is Ideal for Tax Deed Investors

The county’s location along I‑35 and its energy sector make it appealing for long‑term investment. Land prices remain relatively low compared with major Texas metros, yet the presence of oil companies and ranching families ensures steady demand. Investors in redeemable tax deeds can earn high returns with fixed penalties of 25–50 % if owners redeem. These returns often outperform savings accounts or bonds while being backed by tangible real estate. Because Texas requires purchasers to obtain a certificate proving they owe no delinquent taxes, competition tends to be composed of serious investors rather than speculators.

When Are La Salle County Tax Sales Held?

Texas law requires tax foreclosure sales to occur between 10 AM and 4 PM on the first Tuesday of the month. La Salle County normally holds tax sales two or three times a year. Notices appear in the local Frio‑Nueces Current newspaper and on the county website. For example, a recent notice listed a sale on the first Tuesday in April at 10 AM Central Time at the east door of the La Salle County Courthouse (101 Courthouse Square, Cotulla, TX 78014). Always confirm dates through official announcements, as schedules may shift when holidays fall on the first Tuesday.

How the Auction Works

1. Notice & publication: After the county obtains a court judgment, the sheriff advertises the property and sale date in a local newspaper. The notice lists the property description and minimum bid.
   
2. Registration: Texas statutes allow counties to require bidders to register with the county assessor‑collector before the sale begins. La Salle County follows this rule. Prospective bidders must complete a registration form and obtain a written statement certifying they have no delinquent property taxes. This statement can be requested using Texas comptroller form 50‑307. Apply at least two weeks before the sale to ensure processing.
   
3. Day of sale: Arrive at the courthouse early with your registration letter and cashier’s checks. The auctioneer reads each property description and announces the minimum bid. Bidders compete using a premium bid (highest bid) format. Bidding starts at the lesser of the judgment amount plus costs or the property’s appraised value.
   
4. Payment: The winning bidder must pay the full purchase price immediately by cashier’s check or money order. Personal checks or credit cards are not accepted.
   
5. Receipt and deed: Once payment is verified and the bidder shows their written statement, the sheriff issues a Constable’s Deed.
   

Redemption: The original owner has a statutory period to redeem the property. If redemption occurs, the investor receives the amount paid plus the penalty (25 % in year one, 50 % in year two for homestead/agricultural property; 25 % for other property within 180 days). If no redemption occurs, the investor records the deed and gains full title.

Maximum Potential Returns and Expected Returns

Texas offers some of the highest statutory returns among redeemable deed states. In La Salle County, investors earn a 25 % penalty on their purchase price if the owner redeems within the first year and 50 % if redemption occurs in the second year for homestead or agricultural property. For non‑homestead property with a 180‑day redemption, the penalty is 25 %. These penalties are not pro‑rated, so even a redemption after a few months yields the full amount. In addition, investors can profit if the property does not redeem, either by reselling it or renting it. However, due to redemption rights and potential title defects, conservative investors should budget for holding costs and legal expenses.

Open to All Investors / Foreign Investor Participation

Texas law permits both U.S. and foreign investors to purchase redeemable tax deeds. There are no residency requirements, but all bidders must obtain the registration statement showing no delinquent taxes. International investors should use a U.S. mailing address or work with a local representative to receive notices and comply with tax laws. Because the auctions are conducted in person at the courthouse, many out‑of‑state buyers hire an attorney or agent to bid on their behalf. Investors should be aware of currency exchange and wire transfer issues; payment must be in U.S. dollars via cashier’s check.

Importance of Due Diligence in La Salle County Tax Deed Investing

What Due Diligence Entails

Before bidding on any property, investors should research thoroughly. Steps include:

• Property inspection: Visit the site or review recent photos to assess its condition, access, and improvements.
  
• Title search: Search county records to identify mortgages, liens, or judgments that may survive the tax sale. Most tax deeds wipe out junior liens, but certain federal tax liens and municipal assessments may remain.
  
• Zoning and restrictions: Verify zoning, land use restrictions, and environmental issues such as flood zones or oil field leases.
  
• Market analysis: Compare sales of similar properties to ensure the minimum bid is not excessive.
  

Risks of Skipping Due Diligence

Investors who fail to research may buy properties with defective titles, hazardous conditions, or legal restrictions. Some parcels may be landlocked or have outstanding liens. Others might be occupied, requiring legal eviction. In rare cases, properties are redeemed shortly after purchase, so investors must wait for the penalty payment instead of acquiring property. Performing due diligence reduces surprises and protects your capital.

Buying Over‑the‑Counter (OTC) Liens/Deeds in La Salle County

If a property receives no qualifying bids at the auction, it may be struck off to the taxing authorities. After court approval, the county can sell the property over the counter. To purchase an OTC deed, contact the La Salle County Sheriff’s Office or the law firm handling delinquent tax suits for a list of available parcels. Buyers submit an application and pay the minimum price—usually the judgment amount plus costs. While OTC deeds do not involve bidding competition, investors must still obtain a no‑tax‑due statement and pay in full. OTC properties can offer opportunities because they often have lower prices and fixed redemption periods.

Benefits of OTC Purchases

• No bidding competition: Buyers pay a fixed amount rather than bidding against others.
  
• Immediate purchase: OTC deeds can be acquired at any time, subject to court approval, without waiting for the next auction.
  
• Same redemption rights: Owners still have the statutory redemption period, and investors still earn the same penalty rates.
  

Why La Salle County Is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

La Salle County’s economy combines traditional ranching with modern energy development. The Eagle Ford shale has spurred growth in oil and gas extraction. Interstate 35 provides direct access to San Antonio and Laredo, facilitating commerce and transportation. Texas imposes no state income tax, and property taxes, although high, are enforced uniformly. The county’s strategic location and low population mean less competition for tax deeds compared with urban counties.

Real Estate Market Overview

Home values in La Salle County remain modest compared with major Texas cities. Many properties are rural ranches or small homes in Cotulla. Because the area serves oil workers and ranchers, demand for rental housing fluctuates with energy prices. Investors who acquire tax deeds often rehabilitate or hold properties until the market improves. The redeemable deed system offers a safety net because investors either receive the statutory penalty or obtain the property free of mortgages. This combination of low entry cost and potential upside makes La Salle County attractive for long‑term investors.

Conclusion: Investing Wisely in La Salle County

La Salle County’s tax sales provide an opportunity to earn high returns while helping the county collect unpaid taxes. The auctions occur on the first Tuesday of certain months and are held at the east door of the county courthouse. Investors must register, obtain a no‑tax‑due certificate, and pay in full at the sale. The two‑year redemption period for homestead and agricultural property and 180‑day period for other property mean investors either gain title or earn a 25–50 % penalty. As with any investment, perform due diligence, inspect properties, and understand the risks. With careful planning, La Salle County’s redeemable deeds can be a profitable addition to your portfolio.

Pro Tips

• Apply early for your bidder registration. Request the written statement (form 50‑307) at least two weeks before the sale to avoid delays.
  
• Bring multiple cashier’s checks. Because you must pay in full, bring several checks in different denominations to match bids; any excess is returned.
  
• Check occupancy. Some properties may be occupied. Eviction can take time, so factor in legal costs and delays.
  
• Budget for redemption. If the property redeems, your capital is tied up for up to two years, but you’ll earn the statutory penalty.
  
• Network locally. Attend county commissioner meetings and talk with the tax office. Local knowledge can help identify good properties and avoid problematic ones.
  

FAQs: After the Auction

1. Do I need to obtain a quiet title? Yes. After the redemption period, investors often file a quiet‑title suit to clear any clouds on the title. This process establishes marketable title so you can sell or finance the property. Consult a real‑estate attorney.
   
2. Can I renovate or improve the property during the redemption period? You may maintain or repair the property, but major improvements are risky because the owner might redeem. Most investors wait until after the redemption period or perform only essential repairs.
   
3. What happens if someone is living in the property I bought? You must follow Texas eviction procedures. Do not attempt self‑help evictions. The occupant might be the former owner or a tenant with rights.
   
4. Can I get financing for a tax deed purchase? Most tax deeds must be paid in cash, so traditional mortgages do not apply. After the redemption period, you may refinance or sell the property. Private lenders may offer loans secured by the deed, but interest rates can be high.
   

How do I resell the property? Once you have clear title, you can list the property with a realtor or at auction. Research comparable sales and consider making improvements to increase value.

Useful Links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded