Can you own a home by buying a tax delinquent property, for as little as 5, 10, or 20 cents on the dollar? Yes, you can, and Ted will show you how to do it while avoiding 2 common big mistakes.
Watch the video above or keep reading. The topics I’m going to cover are:
- Own a Home by Paying the Back Taxes
- Pay Off Taxes to Buy a House Without a Mortgage
- Buying Tax-Defaulted Property For Pennies On the Dollar
- Buying Real Estate at County Auctions
- Serious Mistakes People Make When Buying Auction Property
- Can You Buy Tax Delinquent Properties With a Credit Card?
- Online Tax Sale Auctions
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Own a Home by Paying the Back Taxes
I’ve been involved in the tax lien certificate and the tax deed business for over 25 years, actually 30 years, but 25 just teaching people like you.
Can you buy a home by paying the back taxes? Well, I’m going to show you that the answer is yes. But there are some things you have to think about before you get to that ‘yes.’ So let me take a few minutes and tell you about that. Let me give you some facts about this business, so you understand it, and you have a little depth of knowledge.
Pay Off Taxes to Buy a House Without a Mortgage
There are thousands of tax-defaulted properties that come up for auction every year.
In about half of the states, if the people don’t pay their property tax, the local government will send them a default notice and say, “Look, you’re in default. If you don’t pay your tax, we’re actually going to confiscate. We’re going to seize the tax delinquent property, and we’ll push you out, and we’ll sell it for the back taxes.”
You wouldn’t want that, and I wouldn’t want to do it. But half of the states will sell those tax-defaulted properties, and you by paying the back taxes at the auction could end up with one of those properties. Now, when the properties go to auction, that local government actually wipes out the mortgage.
Now, that’s a whole process that I can tell you about. It’s in my course material. I won’t cover that right now, but let’s make sure that you understand, you can buy properties for the back taxes.
Everything I’m going to talk about today is 200-years old, yes, 200-years old, because this system has been around that long.
So half of the states sell tax deeds, like I just mentioned, and the other half of the states sell tax-lien certificates. Those tax liens are by the thousands. So those states will sell those at auction.
If you were to buy a tax-lien certificate at auction, the mortgage is wiped out. So here’s another opportunity. By just paying the back taxes, you could end up owning properties.
Buying Tax-Defaulted Property For Pennies On the Dollar
Now, I don’t have time to give you examples of students doing that. But I have students that have bought a tax-lien certificate for less than $20,000, and ended up with a $150,000 property.
I’ve had people that have bought tax deeds at auction, and they’ve only spent a few hundred dollars and ended up with a property worth $30,000, or $50,000.
So there are plenty of examples for this, but let’s get the basics and get some foundation. We could start off by learning it, believe me, I’ve got plenty of time to explain step by step how you can do the exact thing we’re talking about today.
Tax delinquent property is always auctioned. It could be a tax-lien certificate auction, or it could be a tax deed. When they have an auction, they’re basically auctioning for the back taxes, because that’s all the government really wants, they want to collect the back taxes.
And that’s all they care about. So when they put the property back out for resale, they don’t necessarily mark it up except to mark it up enough to collect the back taxes and any fees.
When I said it was 200 years in the making, that’s exactly what’s been going on here. This has been going on for 200 years. It’s just not publicized. So people don’t know about it.
I’ve been doing it for 30 years, but I’ve been teaching it for 25 years. This is a system that always works, but you have to learn the step-by-step process.
Buying Real Estate at County Auctions
So what did you come here for? You came here because you wanted to know if you could buy a property for the back taxes. And what’s the answer? The answer is definitely yes.
It doesn’t matter which county you want to buy tax delinquent property in. You can buy tax liens for just the back taxes, and you can buy tax deed property. Now, why is all this going on? Well, let me give you just a little bit of background.
The local counties are running a big business. The big business they’re running is they take care of the schools. They take care of the police department. They take care of the firefighters, you’re getting the idea, they’ve got a lot of things that they’re taking care of.
All right, that takes money. The money comes from property taxes.
So the property taxes are not being paid by many people. When they don’t pay the property tax, what the local government does is they send a notice and say, “You’re in default; If you don’t pay your taxes, we’re going to confiscate your house and sell it.”
Or if it’s one of those states that sells tax liens, they simply say, “Look, you haven’t paid your taxes. So we’re going to issue a tax lien certificate.” Now you and I, we want to buy those certificates. Because on those certificates we can earn 18%, 24%, all the way up to 36% interest on our money.
Now think about that. Bank of America, Wells Fargo paying 1%, and now we could make 24% or 18%. We can make an outrageous amount of money on a tax certificate.
We don’t get possession; you do not get the tax delinquent property. What you do is you have a certificate, and 97% of those people will come in and pay the tax.
The beauty of this business is, whenever you buy, whether it’s a tax-lien certificate, or a tax deed, there’s no mortgage; it’s already wiped out, and I’ll cover that in another article. But let’s get to some of the things that I want you to be careful of before I finish up today. Okay? Now, here’s what I want you to be careful of.
Serious Mistakes People Make When Buying Auction Property
First of all, anytime there’s a process, I want you to follow the process. Every tax delinquent property auction will have rules. If you break the rules, they’re just going to stop you. They won’t let you bid anymore. So you’ve got to follow the rules. But here are the two big mistakes that people make.
Tax Auction Mistake #1
Number one, they’ll go to an auction, and they’ll actually raise their hand to buy, and they haven’t seen the property. Now ladies, you know, you’re not marrying a guy without seeing him. Well, guys, you know the same thing. So don’t buy a tax delinquent property that you haven’t seen. What if it’s burned down?
You say, “Oh, well, I saw a picture of it.” Well, how old is the picture? We could go through a lot of reasons why you shouldn’t do that. What if there was a hurricane? What if there was a fire? Okay, you don’t want to buy a property you haven’t seen.
Tax Auction Mistake #2
The second big mistake people make is they don’t have an exit plan. In other words, they’re going to buy a property, but they don’t know what they’re going to do with it. It’s not as simple as just picking up a broker, picking up the phone and calling a broker. It’s going to be a little bit more complex than that.
Because you own the property, you might have to do certain things to it or whatever. What if you don’t have the money to do it? So don’t buy a tax delinquent property if you haven’t already planned the exit strategy.
Can You Buy Tax Delinquent Properties With a Credit Card?
Here’s a question I get asked often about purchasing tax liens and deeds. Can you use a credit card? Not all of the states accept a credit card. But in my course materials, I have two guys that specialize.
I’ve got one guy that lives in Michigan. This is unbelievable, but you’ll see it in the materials. I think I’ve even put a little piece of it in the free course that you’re going to get.
He bought 60 properties in 60 months. That’s 60 properties in 60 months, and he did it all using credit cards. So that tells you Yes.
So, definitely. I know that you can do it in New York, and you can do it in Michigan. Yes, there are states that allow it. You can do it online, and you could use your credit card.
Online Tax Sale Auctions
Another question I’m asked is, do you have to be there?
Well, the beauty of the world we live in today is the internet. It wasn’t an internet world some time ago. You had to go to the auction and do it.
But now I have clients all over the Canadian provinces. I have them in the United Kingdom; I have them in Asia in Singapore and Bangkok and places like that, even Australia. How are they doing that? They’re doing it online.
So on the computer and the screen that you’re looking at right now, we’ll teach you to buy in every state in every county, and you can sit right there on your rusty dusty and start buying tax-lien certificates and using your credit card.
We hope you enjoyed Ted’s lesson about buying tax delinquent property.
It may sound like a dream, but it’s a very real fact that you can get mortgage-free property by paying back taxes for pennies on the dollar, or earn interest rates as high as 36%.
You can buy tax delinquent property safely and predictably because it’s backed by a 200-year-old government program. We’ll show you how, so you can avoid the mistakes that most people make.
Investing in tax liens and deeds is convenient because you can do it online from anywhere in the world, and some states even allow you to use your credit card to purchase tax lien certificates and tax-defaulted property. So there’s nothing to stop you from getting started today.
If you’d like to know more about 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.
Learn how to reap huge rewards from tax lien and tax deed investing! Get started today by taking advantage of Ted’s Free Master Class! 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.