Today I’m answering your question about taking possession of tax sale property with a big emphasis on how to resell the property quickly.
The topics I’ll be covering are:
- Buying Tax Delinquent Property for Resale
- How a Tax Deed is Issued by the County
- How Can You Sell a Tax Deed Property?
- Pricing a Tax Sale Property for a Quick Resale
- Profiting from Seller Financing a Tax Deed Property
- Market Your Tax Deed Properties Assertively
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Buying Tax Delinquent Property for Resale
Taking possession of tax sale property to resell is a common practice among investors. However, many newcomers to the county tax defaulted auction have little experience purchasing and reselling properties.
Today I’ll explain taking possession of tax sale property and provide tips on how to sell it quickly.
How a Tax Deed is Issued by the County
Taking possession of the property is the easy part. You’ll receive the official title from the tax collector and treasurer. They’ll pass on the deed to you to be recorded at the county records.
The deed you’ll receive may be called a commissioners, treasurer’s, or tax collector’s deed, but it will more than likely function as a quitclaim deed.
There is a process for handling a quitclaim deed received from the county when taking possession of tax sale property, which you can read about in-depth here.
Taking possession of tax sale property is also done a bit differently in Florida.
How Can You Sell a Tax Deed Property?
Once you have the deed, it’s time to think about selling the property, and the key to selling a property quickly is understanding the importance of marketing.
Many investors struggle with the selling process because they don’t have a plan in place.
The solution is to use available media, and there’s plenty of it. This includes advertising the property on various online platforms such as eBay, Zillow, the Multiple Listing Service (MLS), Trulia, Craigslist, and Facebook Marketplace. Additionally, put up signs on the property and around the neighborhood.
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Pricing a Tax Sale Property for a Quick Resale
When it comes to pricing, it’s important to remember that the goal is to buy low at the auction and then sell it low. This means that you should not aim to get retail prices for the property. Instead, focus on pricing the property competitively so that it sells quickly.
Since you purchased the property at a tax sale, where real estate is routinely sold for pennies on the dollar, you have the advantage of a large profit margin. The large margin enables you to sell the property at a discount that will attract bargain hunters.
Profiting from Seller Financing a Tax Deed Property
Another option is to sell the property via seller financing, in other words, on an installment plan with you, as the seller, acting as the bank.
An installment sale in real estate is a transaction in which the buyer makes payments directly to the seller over time, rather than paying the full purchase price upfront.
The terms of the installment sale are typically outlined in a contract of sale, which is a legally binding agreement between the buyer and the seller.
A contract of sale would include information like the purchase price, number of payments, amount of each payment, and any contingencies that must be met before the sale can be completed.
A seller financier can receive a higher return on the sale of the property than if it had been sold for a lump sum.
For example, if a property is sold for a lump sum of $100,000, the seller receives $100,000. However, if the property is sold on an installment plan, the seller can charge an interest rate on the payments to receive a higher return on the sale of the property.
Additionally, seller financing can open up a larger pool of potential buyers because many buyers may not qualify for traditional financing. They may only be able to purchase real estate through seller financing and would be eager for the opportunity to purchase from an owner offering financing.
Market Your Tax Deed Properties Assertively
To be successful in the business of reselling tax properties, you need to know the market and the competition.
It’s important to be an assertive marketer, take action and use every resource available to advertise and sell the property. This includes not only using online sites, but also consider advertising in newspapers and reaching out to real estate clubs.
Real estate clubs are a great way to connect with bargain hunters who are looking for properties to purchase.
Conclusion
We hope you enjoyed Ted’s lesson, How to take possession of a tax sale property. How it works? How to resell it?
In conclusion, taking possession of tax sale property to resell is a great opportunity for investors. However, it’s important to have a plan in place to sell the property quickly. By understanding the importance of marketing, methods of advertising, and pricing the property competitively, you can increase your chances of success in the business of reselling tax sale properties.
However, the key to success begins at the tax sale itself because you make your money when you buy and collect it when you sell. Remember, buy low, sell low, and use every resource available to advertise and sell the property.
Generate quick cash flow by selling at a discount, or create years of residual income by offering seller financing.
If you’d like to learn how to reap huge rewards from tax delinquent property investing, 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.
Get started today by taking advantage of this Free Gift from Ted. 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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