Are you wondering how to buy a house without a mortgage? Well, there are a couple of ways you can do this.
Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing, reveals how to get a mortgage-free house at a great bargain!
Today I’m going to answer your question about how to buy a house without a mortgage. Everybody is interested in buying a house without a mortgage. So, let’s learn how to do that, and then you can be the expert.
My name is Ted Thomas. I’ve been involved in the tax lien certificate and tax deed business for about 30 years. I started as an investor, then I became a coach, mentor and guide.
Now I’m going to guide you through this whole process and show you two alternative ways to buy a house.
This is a very profitable business. It’s not very well known, but you can make a lot of money once you learn how to do it. It’s lucrative, safe, and secure, and everything we’re going to do is honorable and ethical.
This works for everybody involved. It works for the county, and it works for the investor. It works for everyone involved in the business, and it’s going to help your community. So let’s get right into it.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE LEGALLY AND ETHICALLY
Today I’ll show you how to buy a house without a mortgage. What I’m about to reveal to you is a process that’s been in place for hundreds of years.
It’s ethical, legal, and it’s mandated by the state, which issues the rules down to the local counties. This is a mandated and administered business by the local county.
Buying a house without a mortgage happens every day across America. I’ve been involved in this for many, many years, and the more you see it, the better you’re going to like it.
However, you’re going to learn that you don’t invest with a guy like Ted Thomas. I’m just a teacher sharing with you how to do it.
If you’d like to learn how to get the best bargains in real estate from tax liens and tax deeds easily, painlessly, and safely, (and without a mortgage) you can get started today at no cost by taking advantage of my FREE Master Class.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE FROM THE GOVERNMENT
You’re going to invest directly with the government. In other words, you’re going to invest with the county, and you’re going to get money back from the county when you buy tax lien certificates.
If you buy tax deeds, you’re going to get an actual property without a mortgage. In both cases, you can end up with a mortgage-free property. So that’s how to buy a house without a loan.
I’ve been involved in this business for a long time. It’s safe, secure, and I can assure you that it’s very predictable.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE FROM A TAX LIEN LIST
Tax liens will be announced at the local county level. They’ll do that in a local newspaper, where they’ll announce all the tax lien certificates that are coming up for auction.
There are going to be hundreds of pages, and it’s going to have thousands and thousands of tax liens.
I’m looking at a list in Jacksonville, Florida. All of these tax certificates start out at 18%. You could be buying any one of these 30,000 plus certificates at auction.
There are over 3,000 counties. They sell tax liens, and they sell tax defaulted property. We’re going to talk about both of those as we go along.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE VIA TAX LIEN CERTIFICATES
So, here’s how to buy a house without a mortgage. First of all, if you like to buy tax lien certificates, that’s a very safe and secure investment. Tax lien certificates are the result of a property owner not paying their property taxes.
Let’s say a property owner in Jacksonville, Florida did not pay their taxes. They’re going to end up on the list of tax delinquent properties up for auction that you just saw published in the local newspaper.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE AT AN AUCTION
These auctions could be online and offline. The online auctions will be conducted by the county, so you could buy them online. If the auction is done offline, it will be done in a big room, or they might do it right on the courthouse steps
There will be both types of auctions. You just have to pick out which one you plan to attend.
The treasurer is a government official who gets instructions from the state legislature. The legislature mandates that the treasurer has to levy taxes, then try to collect the taxes.
If the treasurer can collect them, all fine and dandy. If they can’t collect the taxes, then in the tax lien states like Florida, they’re going to sell tax lien certificates.
There are thousands of those certificates available, and what are they going to do? They’re going to auction them online or offline.
Anybody can buy those certificates.
If you buy a certificate, they’re going to give you a piece of paper. You don’t get possession of the property. The people are allowed to stay on the property. In other words, the property owner is not evicted.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE VIA TAX DEEDS
Counties also have tax defaulted property auctions, called tax deed auctions. Let’s talk about that
At the tax deed auction, they’re going to sell the actual property. So, this is a different kind of sale.
What’s going to happen at this sale is they’ll start out the bidding at the back taxes.
In this case, someone didn’t pay their property tax, and the local government confiscated the property.
In tax deed states, they just go out and grab the property and sell it at auction. What do they sell it for? Very close to the back taxes.
That’s what the county wants, the back taxes. They don’t want the property, so they want to sell it quickly.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE FOR CENTS ON THE DOLLAR
A $100,000 dollar property could easily be bought for 10, 20 or 30 cents on the dollar at a tax defaulted property auction. I don’t know the exact discount because the property is purchased via a bidding process at a public auction.
For example, if the back taxes were $10,000, and the property worth $100,000, wow, this is a great deal. You’re going to start out with the bid at $10,000 on a $100,000 property.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE AND MOST ENCUMBRANCES
The beauty of this is that when the auction takes place, it wipes out the mortgage. The mortgage is X-ed out. It’s gone.
The county will wipe the records clean.
The official property records will be wiped clean of all the mortgages and many other encumbrances that are on the property.
So if you buy at a tax deed auction, the mortgage is wiped out. Now, you’re getting a property without a mortgage, and you might have only paid 10 or 20 cents on the dollar for it. You got a real bargain!
HOW TO BUY A HOUSE WITHOUT A MORTGAGE AND NO MIDDLEMEN
All of this money is invested directly with the government. You can’t give a check to me. There’s no middleman. There are no brokers.
You’re going to invest with the government, and on tax liens, you’re going to get a check back from the government.
If you’re buying tax-defaulted property, a tax deed, you’re actually going to get the property. So if you’re wondering how to buy a house without a home loan, this is a great way to do it.
I have a free gift for you all about tax liens and tax deeds. It’s absolutely free, and it’s all yours. Be sure to take advantage of it now.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE IN YOUR STATE
The tax deed sales are conducted in at least half of the states in the United States and half of the counties.
I’m talking about 5,000 auctions every single year, and they’re all listed in the local newspaper. They will also be listed on the county website.
The auctions could be online, or they could be offline, but every county will have these auctions.
You can check if your county has tax lien auctions or if it sells the actual property.
These properties are sold at public auctions. There’s nothing secret about this. The problem is people just don’t know about it.
So, this is a new way that you can make money, but actually it’s an old way you can make money. Understand that this has been around for 200 years.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE IN TWO DIFFERENT WAYS
So, I’m answering your question how to buy a house without a mortgage, and the answer is you can do it in two places.
You can buy a tax lien property. There may be a mortgage on it. However, if the people don’t pay you, if they don’t come in to redeem it and pay the tax, then you’re going to get the property without the mortgage on it.
Whenever there’s an auction, the government wipes out that mortgage. It comes right off the property, wiped clean on the official property records.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE OR EARN HIGH INTEREST
With tax liens, you can make yourself a handful of money.
In Arizona, they pay a maximum rate of 16%. In Florida, it’s 18%. Iowa pays 24% on every tax certificate, and Illinois pays all the way up to 36%.
You can see that these are powerful ways for you to make money in a predictable, certain and secure environment.
If you buy a tax certificate and you don’t get paid, you’re going to get the property without that mortgage. That’s a great way to get a property without a mortgage.
So, here’s how to buy a house without a mortgage with a tax lien certificate. If you buy at a tax lien sale and they don’t pay you, you’re going to end up with the property.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE AND GET THE PROPERTY
If you want to be sure to get one without a mortgage, you can go to a tax deed sale, where you’re actually going to get a property.
You’re going to bid, and for whatever you pay for it, 10 cents, 20 cents, 50 cents on the dollar, you’re going to get the property, and it’s not going to have a mortgage. Again, the mortgage is going to be absolutely wiped out.
Tax liens are different from tax deeds. With the tax lien, you don’t get a property right away.
The property owner stays there. However, if the property owner doesn’t come in and redeem the property, in other words, if they don’t pay you, you’re going to end up with the property with no mortgage on it.
You see the lady on the left below; she’s got a tax lien. She hasn’t paid it, but if the guy on the right pays it, he’s going to be the new owner of that property.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE FROM THE TREASURER
Let’s talk more about how to buy a house without a mortgage. It’s up to the auctioneer and the state to decide what kind of auction they’re going to have.
When you’re buying a tax deed, the property has been confiscated by the local county.
However, with a tax lien certificate, they haven’t confiscated the property. They’re going to give the person a chance to pay the tax. If they don’t come in and pay, they’re going to lose their property.
Who does all of this? The treasury does it.
The treasurer has power mandated by the state to confiscate property. That’s because the treasurer is acting as a tax collector.
If they’re acting as a tax collector at a tax lien auction, that means the property owner is going to have to pay the tax or lose the property.
In all cases, the property owner loses the property if they don’t pay the taxes, so that’s how to buy a house without a mortgage.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE AT A BARGAIN
How much money does it take to get started? Well, you can buy a tax lien for $500, or you can buy one for $5,000 or $50,000.
Keep in mind if you buy a tax lien certificate for $500, and it earns 18%, that’s not very much money.
If you buy a tax deed property, you might spend $10,000, $20,000, or $30,000, but you’re going to get a property without a mortgage.
HOW TO BUY A HOUSE WITHOUT A MORTGAGE VS BUYING VACANT LAND
Should you buy improved land or vacant land? Well, all land starts out vacant, I can tell you that, but the day that they start doing improvements, that changes.
For example, a developer may go out and buy a big farm where there are cows grazing and move the cows off onto another lot. Then they put in utilities, water pipes, sewer pipes and all that. That’s an improvement.
Most of us know improvements as the building that we live in. That’s certainly an improvement.
The taxes on that property will be the land value and the improvement value.
Why do they do that? As for the land value, you can’t depreciate land because it’s always going to be there. Some people have a commercial reason for having the property, so they can depreciate that.
TAKEAWAY
We hope you enjoyed today’s lesson from Ted Thomas, “How to Buy a House Without a Mortgage.”
Ted reveals that a little-known way how to buy a house without a mortgage, and at a deep discount, is at a tax sale.
All over the United States, counties hold public auctions where they sell tax delinquent properties. These are properties that are behind on back taxes.
The counties don’t want the properties; they want the tax revenue, so they will sell a tax lien certificate or a tax deed. Also, a handful of states will sell a hybrid, called a redeemable deed.
In the tax lien states, you can buy a tax lien certificate and receive all your money back plus a high rate of interest.
In this case, you don’t take possession of the property. The property owner is given time to pay the back taxes owed plus interest, which goes into your pocket if the taxes are paid. However, if the property owner does not pay, then you get the property, and you’ll get it without a mortgage.
In the tax deed states, if the property taxes are not paid, the county will confiscate the property from the owner and put it up for auction.
At a tax deed auction, also called a tax defaulted property auction, you can actually buy the property. The opening bid is around the amount of the back taxes owed, which is a small percentage of the property’s assessed value.
At a tax defaulted property auction, you can get a house for pennies on the dollar, and you get it without a mortgage.
So that’s how to buy a house without a mortgage and get it at a bargain basement price.
Think about it, if you can do this once to get a deeply discounted home without a mortgage for yourself, you can do it over and over again and make big profits in real estate, and there’s no one better than Ted Thomas to show you how.
For over 25 years, Ted’s been teaching students how to do this successfully. Ted Thomas offers full support and a complete training with home study courses, Q&A sessions, live tutorials, workshops & web classes, and personal coaching.
Ted is so confident in the system that’s made him and so many of his students wealthy that he wants to give you the opportunity to see it for yourself today for FREE!
Learn the secrets of making money in real estate previously only known to the one-percenters with Ted’s FREE Master Class. It costs you nothing and only takes about an hour of your time. You owe it to yourself to take a look at it.
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