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 a 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 answer to, what is a tax deed sale or auction? You’ll also find more information about investing in tax deed auctions on my website.
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 you don’t pay taxes the government has remedies.
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 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, and 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, commercial properties. The starting bid is always the amount due the local government for delinquent back 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 back 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. You need to know what you are buying. That involves details like the size of the 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.
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.
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