Investing in Tax Sale Land can be a lucrative endeavor, but it requires an understanding of the various factors that influence land value. It’s important to familiarize yourself with the different aspects of land investment, such as the necessity of a property survey or the role of inflation in determining property value over time. As an investor, you want to maximize your profit by buying and selling strategically, instead of relying solely on the traditional buy and hold strategy that your parents and grandparents might have practiced.
A golden opportunity for profit in land investment is tax defaulted auctions, where tax delinquent land can be purchased for a fraction of the original value. You can take advantage of this opportunity to buy at a low price to be able to sell your tax sale land quickly for a profit.
Key Takeaways
- Property surveys are essential when investing in land to understand its value and variables.
- Strategies such as buying and selling properties within a shorter timeframe can lead to significant profits.
- Tax defaulted auctions offer opportunities to purchase properties at reduced prices and make a faster profit in the land investment business.
Assessing and Evaluating Land
When you consider investing in tax sale land, it’s crucial to understand the various factors that can impact its potential for profit. Before moving forward with a purchase, you should have a clear understanding of the land’s unique characteristics and features. The following information will help guide in your assessment of land properties.
Land Survey: Ensure that a survey exists for the property. This will help you understand the specifics of what you’re buying, like the land’s features and potential uses and determine the true boundaries of the land to prevent potential disputes. Without a survey, it can be challenging to know exactly what you’re investing in, so always prioritize obtaining a survey.
Resource Assessment: Roads, water, power, and drainage are essential components to consider. Determine if the land is subdivided and what type of soil exists. Different types of soil can significantly influence the land’s purpose, such as whether it’s suitable for row crops, grazing, or another purpose.
Subdividing Land: If you’re looking to subdivide land, know that it’s a skill in itself. Be cautious, as the presence or lack of certain resources (e.g., water and power) can greatly influence the costs associated with developing the land. If you’re venturing into this territory, it would be prudent to enlist a qualified land broker to guide you.
Your success in investing in tax sale land greatly depends on your understanding of the factors that affect its value. Ensure you thoroughly research each property and get assistance from professionals when needed. With the right knowledge and resources, you can confidently navigate the land market.
Long-Term vs Short-Term Land Investment Strategies
Land investment isn’t one-size-fits-all. You have various strategies at your disposal, but it’s essential to choose the one that aligns with your goals
Buying Land and Holding It
The Buy and Hold strategy is a traditional method of investing in properties. Your ancestors might have followed this approach, purchasing a property and holding onto it for a long period, like 30 years, while inflation increased its value. For example, a property bought for $100,000 might be worth $400,000 after three decades.
While the Buy and Hold strategy leads to increased property values over time, when you’re in business to make a profit, you don’t want to have to hold onto the property for 30 years. The main goal in the profit industry is to make a profit as soon as possible. So let’s talk about a way to acquire land with a profit already built into it, let’s talk about purchasing tax sale land.
Flipping Tax Sale Land for Quick Profits
A smart approach to investing in land is by purchasing tax defaulted properties at auction. Tax sale land can often be acquired for a fraction of their market value, which can provide an opportunity for significant profits when reselling.
You can purchase tax sale land at county auctions for 10, 20 or 30 cents on the dollar then resell the land for 50 to 60 cents on the dollar quite quickly. Not waiting for appreciation, you make a fast profit and can reinvest in other properties to keep growing your wealth.
There are over 5,000 tax-defaulted auctions held annually in the United States, providing plenty of opportunities to buy and sell properties at attractive prices. You can access vital information about these auctions, such as property lists, auction dates, and pricing, by conducting thorough online research. Start by searching county websites.
Before investing in tax sale land, it’s important to know what type of land you’re purchasing and if it has the necessary resources. Are you purchasing raw land that has no amenities, or are you buying a vacant residential lot that already has roads, sewer and utilities? Be mindful of any costs associated with bringing utilities like water or power to a property, as this can impact its value.
Always be mindful of market conditions when determining the best price at which to buy and sell tax sale land. As a confident, knowledgeable investor, you’ll be well-positioned to buy and sell property with the best possible profit margins.
How to Utilize Tax Defaulted Auctions Effectively
When you venture into the world of tax defaulted auctions, you can reap significant profits by buying properties for pennies on the dollar. To make the most out of these opportunities, consider the following guidelines:
- Focus on purchasing properties at the lowest possible prices, such as 20% to 30% of their actual value, and resell them at higher rates, like 50% to 60% of their worth. This way, you can quickly achieve profits and search for new and thriving deals.
- When working with land, ensure a survey is included with the property. A survey helps you understand the specifics about the land, such as its size, boundaries, and potential usage. Knowing the land’s purpose and potential value can help guide your buying decisions.
- If you’re interested in subdividing land, learn the skills required to do so effectively or work with an experienced land broker.
Imagine purchasing a vacant residential lot worth $80,000 for $8,000 at a tax sale, then selling it quickly for $40,000. That’s a $32,000 profit made from one land deal, and your initial investment was only $8,000.
The more you know, the better equipped you’ll be to make smart and profitable decisions in this exciting investment arena, and by utilizing the Ted Thomas buy low, sell low strategy, you can turn quick profits on your tax sale land purchases.
Conclusion
Investing in tax sale land can be a profitable venture if approached with the right mindset and strategy. Instead of opting for the traditional buy and hold strategy, you can focus on purchasing properties at a significantly reduced price at tax defaulted auctions and also selling them at a discount for a quick profit.
There are thousands of tax defaulted auctions every year, and about 25% of the properties up for auction are vacant land. By strategically purchasing and reselling tax sale land, you can achieve profitable returns without having to wait for long-term appreciation.
In summary, tax sale land investing is a viable approach if you’re well-informed about the intricacies of the market. By mastering these skills and strategies, you can create a profitable and sustainable investment portfolio. Take advantage of this opportunity to educate yourself further on the exciting and rewarding venture of investing in tax sale land.
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, personal coaching with certified coaches, and an interactive map and auction calendar research tool that allows you to visit each county online to find the details about upcoming auctions.
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