Real Estate Investment Opportunities

Real estate investment opportunities happen all the time. You don’t need a lot of money to get started in real estate investing. You can start with less money than you might think.real-estate-investment-opportunities

“A delinquent property tax sale in Newton County, GA, saw a couple pick up 22 parcels of property for about $49,000. When they took possession of the property, they actually had $739,500 in property,” says a news story at PRCarbon. Their buys included \$10 for 3.74 acres and a house on a major highway with nearly an acre of land for \$9,200. They also bought the taxes on four other houses and wound up owning them.”

The couple paid less than seven percent of the fair market value for all the property they bought. That is a real estate investment opportunity that returned a big profit.

How did they do it? They bought the property at a Newton County, GA, tax defaulted property auction.

Real Estate Investment Opportunities at Tax Defaulted Property Auctions

What is a tax defaulted property auction? It is a public auction of real estate. The auction is held to collect past due taxes. The property owner did not pay the property taxes. The county takes the property and sells it to collect the taxes.

The auction is the last step in the collection process. Every state allows this kind of property auction, but the rules are different for every state. Every county in each state also has different rules based on state law. To be successful in this kind of real estate investing, you must know the rules. You also have to do your homework.

For instance, California allows counties three different ways to sell tax defaulted property, “at public auction, a sealed bid sale, or a negotiated sale to a public agency or qualified nonprofit organization.” The state controller also reminds investors that each county may have different rules. “For more information regarding a specific county’s public auction sale, please view the county tax collector’s website for the most accurate and up to date information, or contact the county tax collector’s office directly,” the website says.

Some California counties contract with to handle their auctions. Some conduct their own auctions.

Alemeda County uses Bid 4 Assets. One of the rules for participating in the Alemeda auction is to register with the Bid 4 Assets. Another rule is posting a $5,000 deposit.

Shasta County conducts its own auctions. The auctions are held in person and registration is done the morning of the auction. You need a photo ID to register. You do not need a deposit, but you do need a bid paddle. “You must have a bid paddle to participate in the auction. After you have completed registration, you can obtain a bid paddle by leaving your driver’s license or other photo ID or $20.00 as a deposit in exchange for the paddle. Either will be returned to you upon you returning the paddle,” the website says.

Two Auction Types

The two basic auction types are tax deed and tax lien. You can get a list of the states that have each type of auction at my website

Tax Deed

A tax deed auction means you own the property after the auction and all the paperwork is done. You can buy the property for the amount of the past due taxes plus any premiums added by the county. Property is sold in an auction, so you may be bidding against other people.

You should consider investing in a tax deed auction if:

• You want to make big profits.

• You want to own property.

• You want to buy property and quickly sell it to make a big profit.

• You want to own property and rent it to have a monthly income.

I wrote this article to give you more information about tax deed auctions.

Tax Lien

A tax lien auction sells the right to collect the past due property taxes. The owner has a redemption period. The owner has a set amount of time to pay you for the taxes plus interest.

“The interest rates for taxes sold to a buyer are very high — as much as 36% interest per year,” says a brochure from Cook County, IL, on tax defaulted property auctions. Every state that has tax lien auctions has different laws on how much interest you can earn.

If the owner does not pay you within a period of time set by state law, you can foreclose and own the property. More than 95 percent of properties are redeemed by the owner, meaning the owner pays the past due taxes and interest.

The redemption period varies by state. It can even vary with in a state. Nolo is a highly respected legal information website. It has articles about tax defaulted property auctions. In an article on Illinois auctions, it says, “Under Illinois law, you typically get two years and six months to redeem your home after the sale, though the redemption period may be different depending on the circumstances (35 Ill. Comp. Stat. Ann. § 200/21-350).” Georgia gives a property owner 12 months after the auction to redeem the property.

Finding Real Estate Investment Opportunities Requires Doing Your Homework

To succeed at finding real estate investment opportunities, part of your homework is knowing as much as you can about the property. San Francisco’s tax collector says, “CAUTION – INVESTIGATE BEFORE YOU BID – PHYSICAL INSPECTION OF THE PROPERTY IS STRONGLY RECOMMENDED. DO NOT attempt to purchase any property at the auction unless, prior to the auction, an investigation has been made as to the title, exact location, desirability, and usefulness of the properties available. Parcels are sold on an ‘AS IS’ basis and the City and County of San Francisco in no way assumes any responsibility, implied or otherwise, that the properties are in compliance with zoning ordinances or conform to building codes and permits.”

You can learn everything you need to know about property inspections on my website I have videos that explain the whole process. I teach you how to tell if a property is worth your investment. I tell you about my experiences and all the real estate investment opportunities I have found.

Auctions Are Your Chance to Find Real Estate Investment Opportunities

The county must have property taxes to operate.

“Property taxes are a major funding source for the county and are expected to contribute $264.5 million in revenue for the $462.7 million 2016-17 budget,” the West Hawaii Today reports.

That’s just an example from the Aloha State. Every county in every state has a similar story. Only the amount of taxes changes.

The collection process begins with a letter saying the taxes are past due. Collection efforts increase until the tax is paid or the county records a tax lien on the property. The real estate is now tax defaulted property. If the taxes are not paid this time, the county schedules a tax defaulted property auction.

When a tax defaulted property auctions are scheduled, those are real estate investment opportunities. That’s your chance to make big profits. But you have to know the rules and do your homework. This article briefly touched on the things you need to know. Learn everything you need to know to make big profits at my website

Ted Thomas is a Florida-based author and publisher who specializes in tax defaulted properties. Visitors to his website will find 4 must see FREE instructional videos. No credit card required. The video lessons will give you everything you ever wanted to learn about government tax defaulted real estate which is sold at public auctions for starting bid, back taxes for 10 cents to 20 cents on the dollar. You’ll also learn the secrets of tax lien certificates which pay guaranteed returns of 16%, 18%, up to 36%.

Ted Thomas

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.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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