Over the Counter Tax Deed Sales can be a goldmine for informed investors. Here’s what you need to know.
Over the counter tax deed sales are an often-overlooked opportunity that can offer significant rewards for those willing to explore it. These are the remnants of tax delinquent auctions, properties that were available but, for various reasons, didn’t find a buyer. They are the leftovers, the unsold goods that the county still has on its books.
As with any surplus or abandoned item, these properties can represent a potential goldmine for savvy investors willing to do the necessary groundwork. Understanding the nuances of acquiring properties at over the counter tax deed sales is crucial. They are not front-and-center like traditional listings and require a more proactive approach to uncover.
Navigating this segment of the market comes with its distinct challenges. However, with the right knowledge and approach, these challenges can be transformed into profitable opportunities.
Key Takeaways
- Over-the-counter properties are unsold tax delinquent auction leftovers that can turn into profitable investments.
- Prospective buyers need to actively seek out these properties through county records, where they are grouped under various names.
- Diligence in property condition and title assessment is key to capitalizing on over-the-counter real estate opportunities.
Insight into Over the Counter Tax Deed Sales
Tax Deed Acquisitions Without Competitive Bidding
Properties classified as direct acquisition tax deeds are those that didn’t find buyers during the tax defaulted auctions. They’re the ones left behind after the county’s attempt to recoup unpaid property taxes via public auctions. These real estate parcels are typically acquired directly from the county’s surplus inventory.
- Where to find them: Look for these properties at the county treasurer’s or clerk’s office.
- Synonyms for the list: The list may be known under various names, like scavenger list, leftover lands list, strike off list, or lands available list, depending on the jurisdiction.
Factors Contributing to Auction Surplus
Various circumstances lead to properties remaining unsold after tax defaulted auctions. It might be due to external factors such as inclement weather affecting auction turnout. Alternatively, the bidding pool might lack sufficient funds to purchase all the available properties.
Key reasons include:
- Poor auction attendance
- Insufficient bidder capital
- Overabundance of properties relative to the bidder base
Decoding the Surplus Property Concept
Think of surplus properties available at over the counter tax deed sales to be much like the remaining food after a holiday feast. These parcels are the equivalent to the next day’s leftovers—still valuable to the right seeker. Do not underestimate these properties as they might represent untapped opportunities for significant savings.
Locating OTC Tax Deed Sale Real Estate
Cataloging Unpurchased Property Records
Various terminologies are employed by counties across the United States to denote lists containing properties which remained unsold post the tax auction event.
In Illinois, you might encounter the term “scavenger list,” while East Coast counties may refer to it as “leftover lands list.” In Texas, the designation “strike off list” is used. Meanwhile, Florida maintains a “lands available list,” indicating still purchasable properties, and the Carolinas label them “forfeited lands list.”
Essentially, these are titles given to over the counter tax deed sale lists of real estate that received no bids during the tax auctions.
Interacting with County Treasury Personnel
It’s your responsibility to seek out these unclaimed properties within the county treasury offices. Be prepared to guide county employees, as they may not be immediately familiar with terms related to post-auction tax-defaulted properties. Clearly communicate that you are in search of real estate that did not attract buyers at the latest auction.
The lists you will be perusing should be straightforward, displaying properties which are now ripe for acquisition without necessitating substantial outlays of funds. However, it’s still imperative you conduct thorough property and title examinations to confirm their conditions and legal standings are satisfactory.
Tax Defaulted Property Due Diligence
When assessing tax-defaulted real estate that was overlooked at public auctions, it’s crucial to undertake a thorough inspection. These assets represent opportunities that went unsold during tax delinquency sales and are now held in the county’s inventory. It’s possible that there may be good reasons why they did not sell.
Do Your Due Diligence:
- Physically examine the property conditions.
- Investigate the title for any defects to avoid unforeseen difficulties.
Consider Receiving Professional Guidance:
- Engage with skilled professionals, such as legal or financial advisors.
- Consider working with a coach with a successful track record in the domain of tax-defaulted property transactions.
Please note, these properties do not come with a warranty or assurance regarding the property condition or the title’s clarity. By conducting diligent research and seeking appropriate professional advice, you can navigate through the process efficiently. However, you might not find real estate professionals actively promoting them.
Real Estate Agents and Tax Deed Properties
Primary Concerns for Realtors About Over the Counter Tax Deed Sales:
- No Commission: Counties don’t offer commissions on these sales, which is how agents typically earn their income.
- Condition and Title Uncertainties: The properties are sold as-is, with no guarantees regarding condition or title clarity, leaving agents faced with sizable disclosure requirements.
- Disclosure Requirements: Due to their “as-is” nature, agents must disclose potential issues, which may include wear and tear and potential title defects.
A real estate agent’s daily operations don’t include scoping out the leftovers from property auctions, given the absence of monetary incentive and potential complications surrounding these properties.
Collaborating with Real Estate Agents on OTC Properties
While real estate agents tend to avoid government-auction properties, it’s possible to engage with them constructively when exploring these opportunities. You can initiate the search for OTC tax deed properties, and once you’ve done the groundwork, involve a realtor to leverage their market expertise. Remember that properties might require additional work and title clarification, which can be manageable with proper guidance.
Benefits of a Tax Deed Investment Coach
Investing in properties via over the counter tax deed sales presents a lucrative opportunity. However, the guidance of a coach can be invaluable. While you will find the lists easily accessible and straightforward, a coach’s insights can significantly enhance the process, guiding you through the property condition inspection and verifying that the title is devoid of complications—both steps you must not skip.
Experienced coaches have conquered the challenges you’ll face and can share their strategies for profiting from buying and reselling post-auction properties. A coach can offer tailored advice, help you sidestep common pitfalls, and contribute to your overall success in this specialized investment arena.
Tax Lien Certificate and Tax Deed Expertise of Ted Thomas
As a seasoned authority on tax lien certificates and tax deeds, I’ll walk you through the concept of “over-the-counter” tax properties. These properties are those left behind after tax delinquent auctions. Understanding why they matter could unveil valuable investment opportunities.
When properties fail to sell at auction, counties maintain an inventory of said properties, which are then included on variously named lists, ready for direct purchase. Your objective is to locate these lists at the county treasurer’s office. These inventories are akin to the surplus food remaining after a feast, often termed as leftovers.
Identifying Over-the-Counter Properties:
- Visit your local county treasurer’s office.
- Inquire about the list of unsold properties from the auction.
- Be prepared to guide county employees who may not be familiar with post-auction sales.
In several counties, such lists bear different names:
- Illinois: Scavenger List
- East Coast Counties: Leftover Lands List
- Texas: Strike-Off List
- Florida: Lands Available List
- The Carolinas: Forfeited Lands List
Although the availability of these properties varies, it’s not unusual to find a surplus.
How to Proceed with Over-the-Counter Properties:
- Acquire the list and scrutinize it to assess opportunities.
- Investigate the property condition personally.
- Verify that the title is free of encumbrances.
Collaborating with Real Estate Professionals:
- Engage with legal or financial experts as needed.
- Prepare to tackle properties that might possess defects or require improvements.
- Seek guidance from a mentor or coach experienced in over the counter tax deed sales.
Your diligence in these steps will allow you to navigate the realm of tax deed investing with confidence.
Final Thoughts
Over the counter tax deed sales offer overlooked assets can represent significant value. Properties that didn’t attract buyers at the tax delinquent auction might end up in the county’s possession and can often be found on a list for unsold parcels. These lists aren’t standardized across counties and may be named differently.
OTC properties are typically sold “as is,” which places on you the duty of due diligence which includes vetting the property’s condition and ensuring a clear title.
If you’re intent on incorporating properties from over the counter tax deed sales into your portfolio, collaborating with seasoned professionals like attorneys or financial consultants, as well as engaging a knowledgeable coach who specializes in this niche, could be advantageous. Real estate brokers often avoid these types of properties, leading to a scenario where you are likely to be navigating this terrain independently.
| Pros of Over-the-Counter Property Acquisition | Challenges and Considerations |
|---|---|
| Potential for high value at lower investment costs | Properties are sold without guarantees or warranties |
| Less competition as these properties are off the radar for many investors | Requires thorough due diligence on the property’s condition and title clarity |
| Access to a diverse selection of properties that didn’t sell at auction | Real estate professionals may not assist due to the lack of commission structure |
In closing, the path to acquiring properties at over the counter tax deed sales starts at the county treasurer’s office post-auction, where the list of unsold properties becomes your guide, and your due diligence coupled with the right guidance can potentially unlock the value that others have passed by
If you’d like to know more about tax lien and tax deed investing Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, auction buying tours, personal coaching with certified coaches, and an interactive map and auction calendar research tool that allows you to visit each county online to find the details about upcoming auctions.
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