Are you wondering how to buy a house by just paying the taxes? This is definitely possible! Find out what steps you need to take to buy a house without paying the retail price!
This subject can be handled in a number of unique and different ways. I’ll start by saying I’m not an attorney or a real estate broker.
I am however a prepared tax lien and tax deed investor, and I’ll give you some ideas and examples that you can develop and learn how to buy a house by just paying the taxes. I’ll even give you an example.
I’ve been involved in the tax lien and tax deed business for the past 30 years. Starting as an investor in tax liens then growing into purchasing and reselling tax deeds, answering questions, guiding, mentoring and teaching others how to profit.
Today I will share my experience with you so that you can learn and understand how to profit, and I will answer your question about how to buy a house by just paying the taxes. Keep in mind, we are discussing property taxes.
First, I need to make you aware of the foundational information which will benefit you right away in this lesson.
Want to learn how to buy a house by just paying the taxes? Make big profits purchasing properties for pennies on the dollar? Or earn outrageous interest rates secured by real estate? Then you don’t want to miss this FREE mini class.
TAX DELINQUENT PROPERTY
The reason we have tax lien and tax deed auctions is that thousands of property owners across the United States do not pay property taxes on time.
The nonpayment of property taxes triggers an alarm at the local county treasurer’s office. Shortly thereafter, the treasurer will initiate a legal process. This is called due process of law.
The treasurer has been authorized by the legislature to levy taxes, collect property taxes, and if uncollectible, the treasurer is authorized to confiscate the property and resell it at a public auction to the highest bidder.
This process has been in use for over 200 years.
The United States is divided into over 3,000 local county governments and an additional 1,400 municipal governments.
These local governments are all taxing jurisdictions. They are independent of each other, and they are all authorized by the legislature to tax property and seize property for nonpayment of property tax.
TAX LIEN CERTIFICATES
Almost half of those 3,000 counties are benevolent to their residents. Those counties do not confiscate the real estate and evict the homeowner. These counties are referred to as tax lien certificate counties.
Their method of tax collection is unique in that even though tax is levied and collected, the property owner does not receive an eviction notice and stays on the property during the delinquent period.
Investors watch these tax lien auctions and find good quality properties located in good neighborhoods.
An investor at the tax defaulted auction will pay the county government the amount of the tax lien by purchasing the tax lien certificate.
The investor now has an ownership interest if the property continues in default and the property owner fails to redeem (pay for) the tax lien certificate on the expiration date.
The county government is happy to have the delinquent tax money which the investor has paid and will use that revenue to pay the police department, firefighters, school teachers, and county employees.
A PASSIVE INVESTMENT
When the county auctions the tax lien certificate, the property owner is not displaced and remains on the property. So the purchaser of the tax lien certificate owns a passive investment and does not receive the keys to the property.
However, the purchaser does have rights of ownership if the property owner fails to pay the delinquent taxes and redeem the tax lien certificate.
In the event the property owner fails to redeem, the holder of the certificate will ultimately receive the deed to the property.
There is a process termed “foreclosure” that will transfer the deed from the county to the individual who paid the taxes.
HOW TO BUY A HOUSE BY JUST PAYING THE TAXES FOR CENTS ON THE DOLLAR
So this is how to buy a house by just paying the taxes.
The tax lien is sold to an investor. The property owner has defaulted and not redeemed the property due to not paying the tax lien certificate. The investor now becomes the owner of the property and only paid the back taxes.
Wow!! The investor paid pennies on the dollar!
The investor, the new owner, will receive the property with no mortgage or no deed of trust, and the county treasurer will have eliminated the loan documents from the official public records.
I have a free gift for you. It’s a 1-hour, streaming video mini course. Discover how to profit from tax lien certificates and tax defaulted property investing. This is an amazing opportunity, and it costs you nothing. Be sure to take advantage of it.
AN EXAMPLE OF HOW TO BUY A HOUSE BY JUST PAYING THE TAXES
My students, Mr. and Mrs. X, purchased a tax lien certificate. The property owner failed to pay and forfeited the property.
The statutes for the state allowed them to become the new owners after going through a formal foreclosure process.
They used an attorney to perform a judicial foreclosure. A judge in a live courtroom proceeding awarded them the property.
The property was valued at very close to $200,000 according to Zillow. The total that the students paid, including back taxes and attorney’s fees, was $11,000.
What happened?
The students bought a tax lien certificate. The property owner defaulted and did not redeem the tax lien certificate. The property was foreclosed on through a legal process, and an $11,000 investment turned into a windfall profit.
That’s how to buy a house by just paying the taxes.
Investing money has risks. This is nothing more than an example. I’m not an attorney or a broker. However, I have been purchasing tax deeds and tax lien certificates for decades.
TAKEAWAY
We hope you enjoyed Ted’s lesson on how to buy a house by just paying the taxes.
Can you buy a house for just the taxes owed? Yes!
It’s a little known fact that counties will allow anyone to pay someone else’s delinquent property taxes. About half the states will sell tax lien certificates at public auctions to enable investors to pay these delinquent property taxes.
Why would you want to pay someone else’s taxes? When you purchase a tax lien certificate, you acquire an ownership interest in the property if the property owner does not redeem the certificate by the expiration date.
If the property owner redeems it, then you get all your money back, plus an outrageous rate of interest, up to 36%. If the property owner defaults, then you get the property without a mortgage, all for just paying the back taxes.
If you’d like to know more about how to buy a house by just paying the taxes, there’s no one more qualified than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing, to teach you.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal one-on-one coaching.
If you’d like to learn how to earn lucrative profits in bargain real estate, you can get started now at no cost by taking advantage of Ted’s FREE Master Class.
Learn today from the comfort of your home how to earn outrageous interest rates and purchase properties for cents on the dollar. Make your dreams of financial independence come true! You owe it to yourself.
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