An Unusual Way to Find Cheap Property For Sale
It is a real estate investor’s dream to find cheap property for sale that they can turn around and sell for maximum profits. These real estate gems aren’t as rare to find as you might think. In this article, I’m going to show you how you can get good properties for 5, 10, 20 cents on the dollar.
This method may not be what you are traditionally used to, so you may need to change your investment philosophy a little bit.
Now, everybody wants a bargain and I understand that, so I want you to learn this strategy that I’m about to teach you. Once you learn it. you’ll be able to do this for the rest of your life.
Even though the title says ‘cheap’, I don’t call them cheap properties but others generally do. I hope you’re not thinking about junkers and leftovers that are really deteriorating out there in the sun and rain.
I’ll teach you how to get the properties cheap, but they’re going to be worthwhile properties where you can make a healthy profit.
Many investors new to real estate tell me, “I want to get a bargain,” I say, “Okay, I’ll show you how to get low prices but they’re not cheap property. They’re going to be good properties that will have a large margin between the price you pay and what you’re going to be able to sell it at.”
I’m going to show you thousands of low-price properties, even building lots that you can buy for pennies on the dollar that are available in every county in the United States.
Now, when I say every county, I’m talking about 3,000 counties across America, and all of these counties are authorized to have a tax-defaulted auction.
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Cheap Property For Sale Through
What is a tax-defaulted auction? That means the property owner did not pay their taxes and the local government is going to levy the tax, collect the tax, and if they can’t, they will seize the property and sell it at auction. Now, why would the county do such a thing?
Well, the county has a lot of responsibility, and their responsibility includes paying the county employees such as the police, firefighters, hospital staff and sheriff. These people are paid from property tax dollars.
So the county is always going to need money and if property owners don’t pay their taxes, the county’s going to take action. The first action they’ll take is to levy the tax and then try to collect the tax. If they can’t, they will seize the property and sell it at auction.
Does every state or county do this? No – some states or counties impose a lien on the property and sell the lien certificate at an auction, which the homeowner can redeem by paying their back taxes along with a high interest rate. Approximately half the counties, however, sell the tax deeds instead of tax certificates. You simply have to do your homework to find out what the rules and laws are in the county you are interested in bidding in.
This is a great business and it’s been around for 200 years.
Well, the auction bids generally start at the amount of back taxes owing, so you’re going to get a property that may be worth hundreds of thousands of dollars, and only pay pennies on the dollar. The back taxes and fees is where the bidding starts.
Now, when this action takes place, they delete the actual mortgage on the property. The local government wipes the mortgage off of the property.
Cheap Property For Sale: Buy Properties Online
Thanks to the recent pandemic, many counties have transitioned to holding their auctions online.
How do you find tax sales? All the tax sales will be listed on the county website and they’ll also list them in the newspaper.
There will always be auction rules specific to the state and county you are bidding in and they’ll post those on the website, or the auction site. Each county may also vary how they accept payments as well.
Cheap Property For Sale: Mistakes to Avoid
While tax defaulted properties are a relatively safe investment, there are some common mistakes that you should avoid making.
- Don’t buy any property that you haven’t seen in person. Why? What if there was a hurricane? What if it was next to a chicken farm? What if the property has been severely neglected? In any of these scenarios, you are going to have trouble selling the property. Zillow is a great resource for this.
- Never bid without an exit strategy. In other words, you need to know what you’re going to sell it for before you buy. You don’t want to say to yourself, “I think I’ll buy this and hope I can sell it high.” Make sure you know your numbers before you bid.
Cheap Property For Sale: Conclusion
If you are a real estate investor, it is possible to find cheap properties for sale through tax-defaulted property auctions. This is open to anyone, but in order to avoid the common pitfalls, you need to educate yourself on the process.
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