McCulloch County, Texas Redeemable Tax Deed Guide

Introduction

McCulloch County is a rural county located in Central Texas. The county seat is Brady, which lies roughly 120 miles northwest of Austin on U.S. Highways 87, 190 and 377. McCulloch is famous because the geographical center of Texas is in its northeastern part. This guide explains how tax deed sales work in this county. It answers common questions about sale dates, times, registration requirements, bidding rules, redemption periods and more. It also provides fun facts, real estate data and investment tips to help you decide if investing in McCulloch County is right for you.

What Is Redeemable Tax Deed Investing?

Texas is a redeemable tax deed state. That means the county sells the deed to the property at auction after the owner fails to pay property taxes. The buyer receives a sheriff’s deed, but the former owner has a statutory right to redeem the property. Homestead and agricultural property can be redeemed within two years; all other properties have a 180‑day redemption period. If the owner redeems the property, the buyer receives back the purchase price plus a 25 percent premium in the first year or 50 percent premium in the second year. If the owner does not redeem, the buyer becomes the new owner subject to any senior liens.

Important Details

Item	Summary
Tax Sale Type	Redeemable tax deed (property sold with redemption period)
Typical Sale Date	Texas law requires sales on the first Tuesday of each month
Redemption Period	6 months for most property, 2 years for homesteads/agricultural property
Interest / Premium Rate	25 % premium if redeemed in the first year and 50 % in the second year
Bid Procedure	Bid‑up (highest oral bid wins) with cash or cashier’s check
Deposit / Payment	Full payment due the day of sale; failure to pay subjects bidder to a 20 % penalty

Fun Facts About McCulloch County

• Heart of Texas – McCulloch County markets itself as the “Heart of Texas” because the geographic center of Texas lies within its borders. A long‐standing rivalry with Brownwood over the slogan ended when surveyors confirmed that Brady was closer to the true center.
  
• Turkey Center of the Universe – The county was once known for its turkey industry. In the 1920s Brady’s annual turkey trot drew national attention, and McCulloch billed itself as the “Turkey Center of the Universe”.
  
• Historic Agriculture – Cotton, corn, wheat, peanuts and sorghum thrive in the county’s fertile soil. Livestock production—cattle, sheep, goats and mohair—remains the backbone of the economy.
  
• Geographic Data – The county covers about 1,071 square miles of the Edwards Plateau. Elevations range from 1,350 to 2,000 feet above sea level and the climate is semi‑arid with an annual rainfall of about 25 inches.
  
• Population and Income – McCulloch County had 7,565 residents in 2023, a slight decline from the previous year. The median age was 47.1 years, the median household income was $51,919 and the median property value was $104,400. Homeownership stands at 70 %.
  

Attractions and Economic Highlights

McCulloch County offers small‑town charm and outdoor fun. The Heart of Texas Country Music Museum in Brady showcases memorabilia from local musicians. The nearby geographical center of Texas marker along U.S. Highway 377 draws visitors looking for a photo at the state’s midpoint. Outdoor enthusiasts enjoy Brady Creek Reservoir, Earnest O. Martin Park and Brady Lake for fishing, camping and boating.

Transportation is simple. U.S. Highways 87, 190 and 377 cross the county. Curtis Field, built during World War II, serves as a general aviation airport. There are no commercial rail services, but the roads connect residents to Austin, San Angelo and Abilene.

Economically, the county relies on ranching, farming and small manufacturing. Industries include mohair combing, industrial sand production, textiles and small‑scale sand mining. Health care, construction and education provide most local jobs. The low cost of land and steady agricultural base make the area attractive to investors seeking long‑term holdings.

Why This County Is Ideal for Tax Deed Investors

McCulloch County’s tax deed auctions often offer properties at prices well below market value. The county’s median home value is just $104,400, and its rural nature means less bidder competition compared with metropolitan counties. Investors can earn a 25 percent premium when owners redeem the property in the first year, and a 50 percent premium in the second year. High returns paired with a relatively short redemption period (180 days for most properties) make these deeds an attractive, low‑risk investment when due diligence is performed.

Auction Process for Tax Deed Sales

McCulloch County follows Texas foreclosure law. Sales are conducted by the sheriff or constable on the first Tuesday of the month between 10 a.m. and 4 p.m. at a location designated by the Commissioners Court. In McCulloch County the sale is usually held on the front steps of the courthouse at 199 County Courthouse Square, Brady. A recent notice shows the auction starting at 10:00 a.m. with bidding completed the same day.

How the Auction Works

1. Registration – Every bidder must register with the sale officer and show a valid driver’s license or government‑issued ID. The bidder must be the grantee on the deed. Some counties require a statement showing no delinquent taxes. Registration usually opens shortly before the sale and closes when bidding begins.
   
2. Bidding – McCulloch County uses the bid‑up method. Starting bids equal the total delinquent taxes and costs or the property’s appraised value, whichever is less. Bidders call out bids orally; the highest bid wins.
   
3. Payment – Winners must pay the full bid amount immediately using cash or a cashier’s check payable to the McCulloch County District Clerk. Failure to pay results in a 20 percent penalty on the property’s value.
   
4. Deed – The purchaser receives a sheriff’s deed without warranty. Title insurance may be difficult to obtain, so investors should plan to file a quiet title lawsuit before reselling.
   
5. Redemption – After the deed is recorded, the redemption period begins. Former owners may reclaim the property by paying the purchase price, recording fees, subsequent taxes and the 25 or 50 percent premium. The purchaser gains possession 20 days after recording.
   

Additional Costs – Buyers are responsible for taxes that become delinquent after the judgment and for any demolition or maintenance liens. Properties are sold as‑is; there are no refunds.

Maximum Potential Returns and Expected Returns

Texas tax deed investors earn penalty interest rather than standard interest. When a former owner redeems within one year, the investor receives a 25 percent premium on the amount paid. If the owner waits more than a year (applicable only to homestead or agricultural property), the premium increases to 50 percent. These penalties are fixed; they do not accrue monthly like traditional tax liens. Investors must also pay any subsequent taxes but are reimbursed upon redemption. If redemption does not occur, the investor acquires the property, which can often be resold at a higher price. Given median property values around $104,400, the potential for capital appreciation combined with the redemption premium makes McCulloch County tax deeds an attractive alternative to stocks or bonds.

Open to All Investors / Foreign Investor Participation

Texas law does not restrict bidders based on residency. Domestic and international investors may participate in McCulloch County’s tax deed auctions as long as they meet registration requirements and do not owe delinquent taxes. Foreign investors should obtain a U.S. Tax Identification Number and ensure that any entity used to purchase property is in good standing. Because the county requires winners to pay immediately with cash or cashier’s check, remote investors often hire local representatives or attorneys to bid on their behalf. After the sale, investors must also follow U.S. real estate laws regarding recording deeds and paying any applicable taxes. The open bidding process and fixed premium make McCulloch County attractive to global investors seeking stable returns.

What Due Diligence Entails

Steps for Due Diligence

Before bidding, investors should research each property. Obtain the legal description, check the appraisal district maps, and visit the site if possible. Verify zoning and land use restrictions, check for hazardous conditions or encroachments, and estimate the cost of any repairs. Research junior liens such as demolition or maintenance liens that may survive the tax deed. Review court files for bankruptcy or litigation; some sales may be voided if the owner filed bankruptcy prior to the sale. Consult with a title company or attorney about quiet title actions.

Risks of Skipping Due Diligence

Skipping due diligence can lead to costly mistakes. Buyers may discover that the property is landlocked, encumbered by environmental hazards, or subject to homeowner association fees. They may also inherit outstanding municipal liens or tax obligations. Because the deed is without warranty, investors have little recourse if the title is defective. Performing thorough research reduces these risks and helps investors make informed bids.

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

When a property receives no bids at auction, it is “struck off” to the county. McCulloch County may later sell these struck‑off properties through a private sale or resale. Interested buyers should contact the tax assessor‑collector for an updated list. OTC purchases typically require board approval, and the buyer still receives a redeemable deed with the same redemption rules.

How to Purchase OTC Liens/Deeds

Contact the tax assessor’s office to obtain a struck‑off property list. Submit a written offer that meets or exceeds the minimum bid (delinquent taxes and costs). If approved, pay the purchase price with cash or cashier’s check and record the deed. The redemption period and premium apply just as they would following an auction.

Benefits of OTC Purchases

OTC purchases can be attractive because there is no bidding competition and buyers can select properties after due diligence. The redemption premium remains the same (25 %–50 %), and the investor may negotiate the purchase price with county officials. However, some properties are struck off for a reason—often because of access issues or low value—so careful research is crucial.

Why McCulloch County Is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

McCulloch County’s rural economy means lower property values and less competition. The county’s median property value of $104,400 and homeownership rate of 70 % suggest a stable housing market with room for growth. Investors can earn high premiums with little risk because Texas law guarantees a 25 %–50 % penalty upon redemption. There are no bidding wars on interest rate, only on price, which simplifies the process. The state does not levy income taxes, so gains from resale are subject only to federal capital gains taxes.

Real Estate Market Overview

Real estate in McCulloch County is affordable compared with urban Texas markets. The population is small but steady, and the county enjoys a mix of agriculture and light industry. Demand comes from retirees seeking country living and investors looking for hunting properties. Land parcels with access to water or highways often appreciate over time. Because many auctioned properties are vacant land or abandoned homes, investors can acquire acreage at a low cost and either resell or hold for future development.

Conclusion

McCulloch County’s redeemable tax deed auctions offer investors a way to earn high fixed returns while acquiring property at low prices. The county holds its sales on the first Tuesday of each month between 10 a.m. and 4 p.m.. Bidders must register and pay with cash or cashier’s check, and winning bids start at the amount of delinquent taxes. The redemption period lasts 180 days for most properties and two years for homesteads or agricultural land. Owners who redeem must pay a 25 % or 50 % premium, providing investors with attractive returns. Thorough due diligence is essential because properties are sold as‑is and may carry liens. With proper research and patience, McCulloch County can be an excellent location for building a tax deed portfolio.

Pro Tips for Investing in McCulloch County

1. Get on the Mailing List – The tax assessor‑collector’s office will put you on a mailing list for upcoming sales. Subscribe so you know when new lists are posted.
   
2. Arrive Early – Arrive at the courthouse by 9:30 a.m. on sale day to complete registration and review the bid sheet. Bring identification and proof that you owe no delinquent taxes.
   
3. Verify Property Location – Properties are sold by legal description only. Use the appraisal district’s GIS maps to make sure the parcel is accessible and not landlocked.
   
4. Budget for Quiet Title – Plan to file a quiet title action before reselling. Title insurance may be difficult to obtain on tax deeds, and a court order will clear any clouds on the title.
   
5. Check for Homestead Status – Determine whether the property is a homestead; homestead parcels have a two‑year redemption period. Prices may be lower because funds are tied up longer.
   

Frequently Asked Questions

Do I need to evict occupants after a tax deed purchase?
You gain possession twenty days after the deed is recorded. If occupants remain, you can offer a lease or file for eviction through the local justice court.

Can I renovate the property during the redemption period?
Texas law allows reimbursement only for reasonable preservation costs. Major renovations are not reimbursed, so wait until the redemption period expires before making improvements.

How do I clear the title for resale?
Because the sheriff’s deed is without warranty, you should file a quiet title lawsuit to obtain clear marketable title before selling or financing the property.

Are there financing options for tax deed purchases?
No. You must pay cash or provide a cashier’s check on the day of the sale. Investors often use personal funds or private lenders before the auction.What happens if the owner files bankruptcy?
If the owner files bankruptcy before the sale, the sale may be void even if the county was unaware. Always check court records for recent filings as part of your due diligence.

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