Today I’m answering your question about how to find distressed properties, and the topics I’m going to cover are:
- Where to Find Big Bargains on Distressed Properties
- Purchasing Distressed Property From the County
- Finding Distressed Property for Sale at Tax Defaulted Auctions
- Profiting From Distressed Real Estate Investing
- How to Buy Distressed Property and Sell It Fast
Want to learn how to find distressed properties at bargain prices? Would you like to buy mortgage-free real estate for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
Where to Find Big Bargains on Distressed Properties
I’m Ted Thomas, and I’ve been involved in real estate for over 30 years. I specialize in distressed property, primarily tax lien certificates and tax defaulted property.
When I discovered that I could buy property from the local government for 10 and 20 cents on the dollar, and the properties had no mortgage or deed of trust loan, I knew this was a property for me. I have never looked back.
Today I’ll reveal how you can do the same. There are many associated ways to make money with distressed properties, like foreclosures on banked owned properties.
However, I’ll be focusing on how to find distressed properties for money-generating bargains at tax defaulted auctions, and I’m going to make this relatively easy.
Purchasing Distressed Property From the County
The part of the distressed real estate business that I prefer is tax defaulted properties because the government has a few bargains locally in every county across the United States.
There are over 3,000 counties in the USA, and each of the counties will have at least one auction every year. This is a great source of distressed properties.
What is tax defaulted property? It’s a distressed property auction that occurs when a property owner does not pay property taxes. The county treasurer is authorized by the state legislature to seize the property for unpaid property taxes and then resell it at a public auction.
The county doesn’t want the property because the county already owns the parks, schools, administrative buildings, and roads. They already have all the property they want. What they need is the tax revenue to continue to maintain infrastructure and pay county employees. So these properties will be offered at large discounts.
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Finding Distressed Property for Sale at Tax Defaulted Auctions
At a tax defaulted auction, the bidding may begin at only the back taxes, and the overdue delinquent taxes may only be 10 cents on the dollar or even less. The highest bidder wins the auction.
Anyone can attend. The only requirement is that you must have money to purchase. There are no banks involved, no brokers, and no attorneys. You do business directly with the local county.
Not only are these distressed properties auctioned off for pennies on the dollar, but the treasurer of the county has the power to cancel the mortgage and deed of trust loan on the property. Imagine getting a property for 10, 20 or 30 cents on the dollar mortgage-free!
Here’s how to find distressed properties sold at tax defaulted property auctions. Go to the county website. There you will find the auction date and list of distressed properties up for auction. This information is also published in local newspapers.
A question that often comes up is, is there enough for everyone? The size of the auction depends on the size of the population in the county.
A county with a small population may have dozens of properties available, while a county with a large population, like San Bernardino, could have hundreds or even thousands of defaulted properties up for sale. Keep in mind, these auctions are occurring in every county nationwide.
Profiting From Distressed Real Estate Investing
Auction buyers should use due diligence in purchasing. If you want to purchase distressed real estate at tax defaulted auctions, you should physically check the condition of the property before bidding on it.
Savvy auction buyers will determine an exit strategy before purchasing at tax defaulted auctions.
We teach student investors to buy low at the auction and sell low quickly for profits.
How to Buy Distressed Property and Sell It Fast
Here’s an example of a savvy purchase.
At a tax defaulted property auction, a Wisconsin couple purchased a used and abused home for only $8,000. The property tax assessment was $55,000. That’s a margin between the purchase price and tax assessed value of $47,000.
The couple immediately put signs up on the property and around the neighborhood and then advertised a bargain property on Facebook, Craigslist, eBay, and other websites.
Meanwhile, they cleaned up the property, made it look decent and invested an additional $4,000 doing so.
Bottom line. They sold the property for $35,000 after investing a total of $12,000 for a profit of $23,000 more than doubling their money.
Also, they obtained a contract of sale from a local title company which enabled them to sell using an installment sale. The installment sale allowed the new buyer to make payments to them, and they will enjoy an additional $15,000 profit from the installment payments.
Conclusion
We hope you enjoyed Ted’s lesson, “How to Find Distressed Properties”
Distressed properties can be found in every county of the United States at tax defaulted property auctions, and the bargains are amazing.
Since the bidding on the properties begins at the amount of the unpaid property taxes, you can purchase real estate for pennies on the dollar at tax defaulted auctions. Additionally, the properties are sold mortgage-free.
Counties publish auction dates and property lists on their websites and also in local newspapers so the information is public and easy to find.
If you’d like to know more about how to find distressed properties at tax defaulted auctions, 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.
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