Did you know a California Tax Sale is where you could find the opportunity of a lifetime? Few would argue that a home is the most important purchase most people make in their lives. What if I told you that you could buy a house in California for 50% or more under market price? Do I have your attention now? Then keep reading because that’s exactly what I’m going to share with you.
My last article introduced tax liens and answered the question, “Are tax-lien certificates a good investment?” As a result of that article, several questions have been asked of me. Basically my West coast friends are asking, “How can I buy a tax lien in California?”
When I wrote that I found that tax liens are a great investment, my friends in SoCal and Sacramento became interested in how they could get started. I’m sorry to report that California is not a state that sells tax liens. Before you get too disappointed though, let me give you the good news. There is an opportunity that may offer even better returns than tax liens.
California tax sale: A chance to prosper in tough times
With a good source of information and a good guide, a California Tax Sale can offer houses in one of the most expensive housing markets in the country at amazing bargains. With the right information and techniques properly applied, getting a property for 50-70% off market value is not unheard of.
The time is ideal for a California tax sale property
It’s a painfully obvious fact that the whole country, and much of the world, is in a huge economic downturn. COVID-19 has businesses closing and people are panicking because of this, unemployment benefits are being requested at the highest rate in modern history. Many economists are stating that it may take the country years, even a decade, to get back to where the economy was before this crisis.
On top of that, California has one of the highest home costs and relatively high property tax rates. It’s common knowledge that California is incredibly beautiful, but it has a high cost of living. And it’s an unfortunate fact that in addition, the unemployment crisis has hit California worse than most other states.
There are too many factors to mention involved with the economy’s downturn, and even more things required to get it to turn around. So with all the gloom and doom out there, how can I sound optimistic that now is a good time for a California tax sale, or any investment for that matter?
This bad news means that many people have been unable to pay their property taxes. As a result, there are once-in-a-lifetime opportunities to be found at a California Tax Sale. Let me explain what this is and how it comes to pass.
How do properties get to a California tax sale?
After 3 or 5 years of unpaid property taxes, the property would go on what’s called the California delinquent property tax list. Of course, property owners can pay their back taxes. As long as it’s within the California Tax sale redemption period, their property can be redeemed. If they do not go through the California Tax sale redemption by July 1st, the California State Comptroller allows each individual county to list the property.
The property would then appear, for example, on the Riverdale County tax sale. So even though we are looking at a California Tax Sale, we have to zero in and look closer, to individual counties. Another example would be where we would look at tax deed sales in Sacramento. At their tax deed sale, you would look into properties that fit your criteria.
Another example would be when a property goes from the California state comptroller’s delinquent property list to the individual county’s list. Such as the Riverdale County tax sale, which is where you would actually be bidding on the property if you were interested in buying it.
This is where the real homework begins. I have learned enough from Ted Thomas, to know that many people who make it this far in the process still haven’t done enough research to be properly prepared to make successful bids and buys.
Accordingly, I would never recommend that anyone bid on, and buy a property without the information and help of an expert in the field. I can’t think of anyone better than Ted Thomas. Not only does he have over 30 years of experience and a wealth of information readily available, but he has a helpful team that holds regular training events. He has coaches that personally walk people through the auction process that they themselves have done.
The actual bidding process is held on a site called bid4assets.com. But again, before doing any of the bidding and buying, research and investigation needs to be done. You must do your homework.
There are different terms and terminology used in the field. You might hear about tax deed auctions, tax property auctions, tax-defaulted properties, or many other terms. In California at least, they all refer to the California tax sale.
Don’t miss your chance to get involved in a California tax sale
This article barely skims the surface of what’s involved in the process. To be sure, there are many more questions that are beyond the scope of this article. Feel free to dig deeper and explore the subject because word is starting to get out that the California Tax Sale offers some amazing investment opportunities. That’s because thousands of smart investors are turning tough economic times into huge profits. You can be one of them.
Instead of bemoaning how bad the economy is, we can do something about it. Do what I did and give TedThomas.com a visit. Ask about the California tax sale, or anything related to tax liens and tax deeds anywhere in the country. When you do, and follow the steps of the many successful investors who have, you will be more than happy you did. Tell them I sent you.