What Is a Tax Deed Sale? A Bargain Hunter’s Dream!

FINDING BARGAINS AT A TAX DEED SALE

You can get properties for pennies on the dollar at a tax deed sale. Whether you’re an investor or buying your first home, a tax deed sale is a much more affordable way to acquire property, if you know what to do.

Watch the video above or keep reading for a summary:

To answer the question what is tax deed sale or auction, I should first explain that a tax deed sale or auction has existed in the United States for over 200 years. They are held in many states. This is a method, let’s call it, a process, that allows the local governments to collect unpaid property tax.

From my extensive collection of training material, I’ll explain in more detail the following:

  • What is a tax deed sale or auction
  • How to invest in tax deed auctions
  • What should you know before bidding in a tax auction

THE WHO, WHAT, WHERE, WHEN, AND WHY

This article will outline and give details of the who, the what, the where, the when, and the why of tax deeds. Most importantly, I will show you how to make money with small investments.

Together we’re going to discuss how you can make profits of $10,000, $20,000, all the way up to $100,000 by learning how to purchase tax-defaulted real estate, and we’ll do that at wholesale prices, paying only pennies on the dollar, as little as just the back taxes. I’ll start with a brief history.

A BRIEF HISTORY OF THE TAX DEED SALE

First of all, every piece of land in the United States is owned by the federal government. The federal government allows you and me to have rights of ownership as long as we pay the taxes. Local government is mostly funded by revenue from property taxes.

Now I’m not talking about income taxes that you pay the IRS, and I’m not talking about state taxes. Today we’re going to talk about property taxes. Unbelievable as it sounds, thousands of people neglect to pay property taxes. In the United States, if a property owner fails to pay taxes, the government has remedies.

THE AUCTION

Tax-defaulted properties end up at auction, and that’s where savvy investors buy the properties with starting bids of just back taxes. The local government remedy for non-payment of taxes is a tax-defaulted auction. Tax deed sales or auctions take place in about half the taxing districts in the United States.

In most cases, the auctions are by public oral bid. Anyone can buy at the auction. To qualify is simple. The rules vary at each auction, but in general, you may need to register before bidding. Definitely, if you’re the winning bidder, you need to immediately pay for the purchase.

Basically, that’s it. Anyone with money can buy at a tax-defaulted auction. The secret is to know the who, what, where, when, why, and how the tax auction takes place. That’s what my tax deed training is all about.

For example, who has auctions? Well, the county governments in all states are authorized to auction property for unpaid back taxes.

What is happening at the auction? The county is selling vacant land, homes, farms, and commercial properties. The starting bid is always the amount due to the local government for delinquent taxes plus the penalties.

Where do the auctions take place? Normally at the county offices, the location is announced well in advance.

Why? Well, they have those auctions to collect unpaid property taxes.

How? The rules vary from state to state.

WHAT YOU NEED TO DO BEFORE BIDDING AT A TAX AUCTION

Let me briefly cover what you need to do before bidding at a tax auction. As savvy property owners, you need to know what you are buying. That involves details like the size of the tax deed property, what is built on it, the zoning, restrictions, easements, property taxes, tax appraisal, previous sale prices, and most importantly, what’s the current condition of the property.

The next thing you need to know is how to sell. The exit strategy is important.

Now let me give you some idea about this competitive advantage.

At the tax defaulted auction, bidding starts at the back taxes. We’re all bargain hunters, so we plan to buy property at close to back taxes, let’s say 20% to 30% of the retail value. The low price gives us a competitive advantage when compared with regular real estate or traditional real estate that’s for sale.

Let’s not spend a lot of time fixing houses. No toilets, tenants, termites, or trash. This is an exit strategy that’s really important.

IN CONCLUSION

If you want to buy property for pennies on the dollar, tax deeds are a bargain hunter’s dream. Counties put a variety of properties up for auction, and today many of those auctions are online.

If you know the rules and how to do your homework, you could make $100,000 a year working 7 to 10 hours a week. And I can show you how like I’ve shown hundreds of people just like you over the 25 years I’ve been teaching this.

Learn more about the Tax Deed Sale and Tax Lien Certificate. Access your Free Gift with this link:  https://tedthomas.com/freegift

Podcast-Ted-Thomas

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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