IS TENNESSEE A TAX LIEN OR TAX DEED STATE?
Curious to know is Tennessee a tax lien or tax deed state? Find out! You’ll also get a few tips on what mistakes you should avoid making and how to handle competition in the business.
Today I’m going to answer the question “Is Tennessee a tax lien or tax deed state?”
You’ll also learn some secrets about how to make money that other people don’t know, and I’m going to talk to you about a few mistakes people make. I want to make sure that you don’t make those so that you avoid the risk.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – ABOUT TED
I’m Ted Thomas, and I’ve been doing this for 30 years. I started out as an investor with tax liens, then I transitioned into buying tax defaulted properties. I’ve made a business of doing that.
I also made a business of teaching. I started out years ago, just making a few audios to answer people’s questions since I had so many questions when I began.
Then, I started making CDs that became seminars. I’ve been teaching people worldwide this business for about 30 years, but simultaneously, I’m an investor. I’m a practitioner. I do this as a business.
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IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – REDEEMABLE DEEDS
Is Tennessee a tax lien or tax deed state? Well, it’s a redeemable deed state.
We’ve talked a little bit about redeemable deeds in the past, but let me give you a refresher on that if you missed one of those other lessons.
A redeemable deed works this way. The local county didn’t collect the taxes, so the property owner is now in default.
In Tennessee, they will issue a redeemable tax deed. They’re going to let the world know about that. They’re going to put it in the newspaper and on the websites. That’s where you can find these redeemable tax deeds.
There are 95 different counties in Tennessee, and those 95 different counties all sell redeemable deeds.
That simply means that there’s going to be an auction, and they’re going to auction off those redeemable deeds. The highest bidder will get the redeemable deed, however, they won’t get possession of the property.
What will happen is the property owner will stay on the property, even though whoever the highest bid was owns the deed.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – REDEEMING THE DEED
The new owner of the deed has to wait 1 year before they can take possession of the property. That means the property owner has 1 full year to come in and pay that redeemable deed.
What do they have to pay? They have to give you back all your money, whatever you bid; you get that back, plus 10%. That’s the rate of return in Tennessee. Its 10% on that redeemable deed.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – PURCHASING REDEEMABLE DEEDS
How many of these will they have? They’ll have thousands of these. Now, keep in mind, we’ve got 95 counties. They can all sell redeemable deeds.
They can sell them when they want, but they announce the auctions in the newspaper, and online they’ll also have websites where you can find redeemable deeds available.
You could buy one for $50, $500 dollars, or $50,000 dollars, any amount. What you’re doing is you’re paying someone else’s back taxes.
You don’t get possession. You’ve invested your money, but the property owner remains on the property.
It’s very much like a tax lien certificate, however it’s a redeemable deed. If the people don’t pay, you’ll ultimately have that property.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – LIENS, DEEDS, AND REDEEMABLE DEEDS
There’s a difference between a redeemable deed, a tax lien, and a regular deed. They’re all different, but that doesn’t mean you can’t learn how to do this.
It takes 4 to 6 weeks to learn. We have all kinds of courses we could teach you, but today let’s give you as much as possible so you can get the idea how it works.
I have a free gift for you, a streaming video mini course that will teach you the basics of tax lien certificates and how to make big profits in tax defaulted property. You don’t want to miss this. It’s costs you nothing, and you have so much to gain.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – AUCTIONS
95 counties will sell the deeds. When do they do that? They’ll do it at a live auction. They’ll announce the auction site.
You can go there and raise your hand at the auction to buy, but if you prefer not to buy at that auction, they’ll let you do it online. They do both, and sometimes they’ll do both at the same time.
About half of the states will sell tax lien certificates, the other half of the states will sell tax defaulted properties. In between all of that, there are a few states that sell redeemable deeds.
Texas, for example, sells redeemable deeds. Georgia, also sells redeemable deeds.
All that means is that you buy and bid, but you don’t get possession.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – A LUCRATIVE PASSIVE INVESTMENT
You will earn a high interest rate. Tennessee is 10%, Georgia is 20%, and Texas is 25 percent.
You can see this is a very lucrative business without a lot of risk.
For example, let’s say you bought a redeemable deed in Tennessee. You just go home and sit and wait. It’s a passive investment. There isn’t anything you can do.
You can’t take over the property; you can’t push the people out. You have no possession and no rights of possession. All you can do is sit at home and wait for the people to pay.
If they don’t pay, you’re going to end up with the property. However, if they do pay, you’re going to have to give back the deed, and you’re going to get all your money back, plus you’ll earn 10%.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – BUYING REDEEMABLE DEEDS ONLINE
This is a powerful way to make money online, and anybody can do it.
If you want to buy one for $50, do that, or maybe you want to buy one for $5,000.
You can pick the one that you want from the list of all the tax liens and tax deeds that are available, or in this case, the tax deeds.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – LIST OF TAX DEFAULTED PROPERTIES
You don’t have say, “They’re going to give me one that I don’t want.” because you can pick those from a list.
The list will show all the tax numbers of the properties, then you can take the tax number and go right to the county records and research what that property is.
You could also research if it’s got 3 bedrooms, 4 bedrooms, or whether it’s worth $200,000 or $100,000.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – BUYING PROPERTY FOR BACK TAXES
The tax that’s on the property is generally 1% to 2%. I rarely see taxes over 2%. That tax is due every year, and the property is going to go to tax default if people don’t pay it.
Let’s talk about why all this is going on. If you’re not familiar with the system, it works like this.
The local county needs money. They need money, and they get all their money from property taxes. It’s universal in the United States that every single county has a property tax to pay. So every property has a property tax.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – WHY COUNTIES LEVY PROPERTY TAXES
If people don’t pay property tax, the county can’t run. Why can’t it run? Because it needs money, and it has no money.
Whenever you pay your property tax, or anybody does, that money is used to pay for the county employees, the school teachers, the police, the firefighters.
it’s also used to pay the people that maintain the schools. Every county service that’s provided, whether it’s the sewer or the court system, everything provided by the county has to be paid for.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – REDEEMABLE DEED STATES
In some states, they sell thousands and thousands of certificates.
For example, Texas has 254 counties. Every one of those are going to sell redeemable deeds. In Texas, you buy the property, but you don’t get possession until 180 days go by.
In Tennessee, it’s one year, so you have to wait one year to take possession of the property. I think you’re getting the idea.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – VIEW BEFORE YOU BUY
Let me give you some background on mistakes that you could make so that you don’t make those same mistakes.
Mistake #1 – Never buy a tax lien, tax deed, or redeemable deed without looking at the property. Why? Because there might be a problem with the property.
For example, what if there was a thunderstorm or a tornado that wiped the property off the residential lot? You’d have nothing there.
But you’re saying, “Oh Ted, I can see a picture of it.” However, you don’t know when the picture was taken. So, you always have to take a look at the property.
If you’re doing this online, we have ways to teach you how to do that. Have someone check it out. A simple thing to do would be to get an Uber driver or a Domino’s pizza guy, and send him out there with his phone to take pictures.
Make sure the day before you bid that the property is there. If there’s no property, you will have spent a lot of money, and you won’t have a property that has any value.
The county’s not going to be responsible. You are.
So, you never want to buy a property or a tax lien, tax deed, or redeemable deed unless you’ve already looked at the property.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – HAVE AN EXIT STRATEGY
Mistake #2 – People don’t understand that they’re going to get a property ultimately.
You purchase a redeemable deed. You wait one year. If you haven’t looked at the property and figured out what you’re going to do with it when you get it, you’d better do that before you bid, or you’re going to be in trouble.
In other words, you need to know what you’re going to do with that property.
How are you going to sell this property? Don’t buy it unless you have a plan to sell it and know how much you’re going to sell it for.
I bet you’re worried about competition. Don’t worry about it. Why? There are always going to be too many tax liens and tax deeds.
I’m not implying that there aren’t competitors. I’m going to teach you how to handle competitors, and I’ll start that process right now.
For example, if you’ve figured out what you’re going to sell the property for, you’ll bid so that it’s going to be profitable for you. You won’t bid too high.
You don’t want to go to an auction like 80% of people with no training do. They show up, and they have no idea what they’re going to sell a property for. They’re just there for bidding, and they want to try to win.
Let them win. You won’t get a property every time, but there will be some auctions where you’ll get 3 or 4.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – BIDDING ONLINE
My professional investors do this online. You need to be very careful online.
Anybody can go online. It’s a bonanza for people that don’t know what they’re doing. They think they’re going to get rich by Friday afternoon.
I’m here to tell you, this is a very systematic way to make money. For well over 25 years, I’ve taught people how to make money. If you want to do this, you need to learn a step-by-step process. Yes, I’m in the business of doing that.
Don’t worry about competitors. If you get beat, so what? There’s always going to be another auction.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – A BUSINESS OF ABUNDANCE
Let me tell you how big a business this is. We’re talking in the billions.
How can I say such a thing? There are 5,000 tax auctions every single year. Let me put it in perspective.
Every state is allowed to have auctions, and every county within the state is allowed to have auctions, even every municipality. These are all taxing jurisdictions.
There are over 3,000 county auctions and over 1,400 municipal auctions, and the state is allowed to have multiple auctions.
For example, they might have an auction in your county, but they didn’t get everything sold. So they’ll wait 30 or 60 days, and they’ll have another auction.
The people that went to the auction will be the only ones who know about it. At some of these, there’s very little competition.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – AUCTION COMPETITION
If you show up in a room and there are 400 people in there, you’ll think you won’t get something.
Let me tell you what I’ve learned from over 25 years of going to auctions. I’ve learned that 80% of the people are visiting with their friends and showing off. 20% will be bidders.
So, with 400 people, you’re going to have 80 to 100 bidders maximum, and most of those will absolutely be out of the business at $10,000.
If you’re bidding on the bigger properties so that you can make big money, you’re going to find it’s going to be down to one or two people in the room every time. That’s my experience.
IS TENNESSEE A TAX LIEN OR TAX DEED STATE? – INVESTING SUCCESSFULLY
I started as an investor, and I’m still an investor. I don’t get every property, but I don’t want every property. In some county auctions, there will be 5 properties you want. We’re going to prepare you for that so you can be an investor.
You want to make $25,000, $50,000 or $100,000? We can show you how to do that. We do it on a regular basis.
64% of my clients are women. Why are they doing so well? I’ll tell you why they do well. They study the materials and follow the instructions.
We tell them, “Read the book. Watch the videos. Come to the class. Have a coach.” If you’ll do all those things, we can have you making $25,000, $50,000 and $100,000, but you need to get started.
Where will you start? How about if I give you a 1-hour quick start video. It’s free.
Learn what you want to learn from there, and then be sure and come on these calls. The only way you’re going to get it and be successful is to be sure you’re one of the listeners and watchers.
We hope you enjoyed Ted’s lesson, ” Is Tennessee a tax lien or tax deed state?”
Tennessee is a redeemable deed state, which is a bit of a hybrid of a tax lien and tax deed.
At a redeemable deed auction you’re bidding on the deed to the property, like you would at a tax deed sale, but, as in a tax lien state, you don’t get immediate possession of the property.
In a redeemable deed state, the property owner is given a period of time to redeem the deed, which varies according to the state. In Tennessee, the redemption period is one year.
So after you’ve purchased the deed, the property owner has one year to redeem it. In Tennessee, to redeem the deed, the property owner must pay you the amount you paid at the auction for the property plus 10%.
If the property owner doesn’t redeem the deed, then you get the property. Most property owners will redeem the deed, making redeemable deeds an excellent passive investment.
If you’d like to know more, 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 how to do this.
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