Investing in back property taxes is a safe and profitable way to make money. This is my business and I make money doing it. You can do the same.
The topics I’m going to cover today are:
- Investing in Unpaid Property Taxes?
- Real Estate Bargains at Tax Lien and Tax Deed Sales
- How to Find a Tax Sale
- How to Invest in Tax Delinquent Property
- Is Tax Delinquent Property a Secure Investment?
- Learn More About How to Buy Property for Back Taxes
Want to learn how to purchase bargain real estate just by paying the back property taxes? Would you like to buy mortgage-free property for cents on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
Investing in Unpaid Property Taxes?
A lot of people wonder how someone can invest in back property taxes. The answer is simple and the investment strategy is pretty easy too.
Property taxes aren’t paid for a variety of reasons. Regardless of the reason, the local tax collector is going to try to collect that money. “If you don’t pay your property taxes on time, the tax collector can use various collection tools to get the money owed, and you potentially could lose your property,” states an article at Zacks.
Local governments around the nation rely on property taxes to fund their budgets. When the taxes are not paid, they go through a collection process.
Real Estate Bargains at Tax Lien and Tax Deed Sales
There are two kinds of sales, tax deed and tax lien. You can find out which sale your community has by contacting the local tax collector’s office.
The kind of sale doesn’t really matter. In either case, you only invest for pennies on the dollar. It’s such a bargain because property taxes are a small fraction of the value of the property.
Say the property is worth $100,000. You spend $1,000 paying off the back property taxes. That’s just one percent of the value of the home. You might have to spend a little bit more, you may spend less. Either way, you’ve spent a fraction of the cost of buying that property outright.
How to Find a Tax Sale
How do you find back property taxes to invest in?
• Read the legal sections of newspapers.
• Read the public notices websites from local governments and press associations that post tax sales on behalf of the newspapers.
• Call the tax collector’s office for a list.
Ted Thomas has a Resource Center filled with information. For example; the Resource Center has an Auction calendar which shows all of the auctions coming up.
Depending on the jurisdiction, auctions of real estate owing back property taxes are held once a year or more often. The tax collector’s office is one source of information for this. Once you find out when the tax sale is planned, you can watch the websites and newspapers for the listings.
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How to Invest in Tax Delinquent Property
Back property taxes sales are auctions. Some auctions are held in person. Some are held in-person and online. You need to find out details about the auction will be before you go.
Ask if there is a registration fee. Find out how much time you have to settle your bid. Live auctions usually require all bids be paid by the auction’s end. Online sales may give you a few days to get a certified check to the tax office.
When you find out when the sale is set, show up. If you are not at the auction, whether in person or virtual, you can’t bid.
Some people hire agents to attend sales for them. The agents can be paid a set fee, hourly wages, a commission, or receive part of the investment. That’s something you negotiate with the person bidding on your behalf.
Is Tax Delinquent Property a Secure Investment?
It’s safe. The property tax auction system is backed up by the local government and state law that creates the property tax system.
This is not a guarantee your money will be safe, but it is a guarantee that the sale is legal and aboveboard. Government is serious about collecting taxes, so it will make sure a property tax sale is legally sound. If this kind of investing was not safe, governments would not be able to get their money.
“The purpose of a tax sale/auction is to collect delinquent revenue and put properties back on the tax roll. Although the majority of property owners pay their taxes on time, owners who do not pay their property taxes force the government to take extreme measures. A tax sale is the last resort available,” says the Knox County, TN, tax sale website.
It’s fiscally secure because you are paying off someone’s tax debt which is secured by real estate. In states with a redemption period, the homeowner has a set amount of time to reimburse you for those back property taxes plus interest. The interest is how government entices people to make this investment and how you make a profit.
If the homeowner doesn’t redeem the back property taxes, you foreclose on the house, and then you own it. “The interest is where the real money can be made. States set rates that the counties can charge delinquent taxpayers on overdue taxes and they can range anywhere from 12% to 24%,” states a report at CNN Money.
Learn More About How to Buy Property for Back Taxes
We hope you enjoyed Ted’s lesson on back property taxes.
When you pay someone’s back property taxes at a tax defaulted auction, you either wind up with a profit on your money or a home.
If this sounds like a good investment program to you, you’re not alone, Ted has taught thousands of people to do this for two decades.
If you’d like to know more about acquiring real estate by paying back property taxes, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
Learn how to reap huge rewards from tax lien and tax deed investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.