Today I’m answering your questions about acquiring rental property investments at tax deed auctions, and the topics I’ll be covering are:
- How to Start Buying Properties With Little Money
- Buying Property for Investment at Tax Deed Auctions
- Earning a 6-Figure Income in Real Estate
- Seller Financing an Investment Property
Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then take advantage of this FREE Gift.
How to Start Buying Properties With Little Money
I’m Ted Thomas, and I’ve been involved in the tax lien certificate and tax deed real estate business for the past 30 years. Today I’m going to share with you how to turn a tax defaulted auction property into a rental property money machine.
Let’s talk about turning defaulted tax property – tax deeds – into rental property investments, starting with an explanation of, what is a tax deed?
Nationwide, the USA has more than 3,000 counties. These are local governments that auction tax defaulted real estate, which is property that is delinquent on payment of property taxes.
The bidding to purchase real estate at a tax defaulted auction starts at just the back taxes. Are you wondering how all that happens?
All 50 states have enacted laws mandating that owners of real estate must pay property tax. The legislature enacts the laws and then pushes the rules down to the county supervisors or county commissioners to enforce.
The board of supervisors requires the county treasurer to levy and collect property taxes, which are used to pay county employees, police, firefighters, school teachers, and make contributions to infrastructure like hospitals and libraries.
If the taxes go unpaid, the treasurer is authorized to seize the property and sell it at a public auction to collect the overdue taxes.
Buying Property for Investment at Tax Deed Auctions
The treasurer is in charge of the auction, and auctions are public. Bidding begins at 10 to 20 cents on the dollar of the tax assessed value. The highest bidder wins the tax-defaulted property.
Many properties will sell for 60%, 70%, or 80% or more below the tax assessed value. Generally, that works out to be 10 to 30 cents on the dollar.
The county treasurer will wipe out the mortgage or deed of trust loan, therefore the property will be free of a mortgage or trust deed liens. This is the law in all 50 states.
Because the profit margin is so high, a tax deed auction is an ideal venue to acquire rental property investments.
Earning a 6-Figure Income in Real Estate
I’ve tested dozens of strategies, tactics, and techniques, sifted and sorted through dozens of deals to find out what works the best and fastest to achieve big paydays, and through trial and error, I’ve discovered what doesn’t work so you don’t have to.
With the right guidance, you can build a one-person, work-from-home lifestyle, a business that generates a low-hassle, six-figure income.
I’ll prove to you that you don’t need a big bundle of money to earn a six-figure income. Just a few tax defaulted property deals will do the job, and this is an excellent way to acquire rental property investments.
I have a free gift for you that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Be sure to get your FREE gift today.
Seller Financing an Investment Property
Here’s an example. The state of Michigan auctions tax defaulted real estate in all 83 of its counties. A married couple, senior citizens who are students of mine, followed my guidance and purchased a single-family home at a tax deed auction.
The property was valued at $55,000 by the assessor. They paid only $8,000 at the auction and received the deed. Cleaning up the property cost them an additional $4,000.
This couple followed my “buy low, sell low and do it fast” strategy. They could have easily rented out the tax defaulted real estate, but instead, using a contract for sale, they sold the house as seller financers and accepted installment payments.
Their original investment came to a total of $12,000. In less than 60 days, they sold the property for $35,000 and made a profit of over $20,000. The installment payments were for $400 a month over a period of 10 years for a total of $48,000.
Certainly, this was a big improvement over just renting the property, and this was just one deal of three in a six-month period.
We hope you enjoyed Ted’s lesson, “Turning Tax Deeds Into Rental Property Investments.”
If you’re in the market for rental property investments, tax defaulted properties are sold mortgage free for 10, 20, or 30 cents on the dollar of the tax assessed value.
Purchasing property at bargain basement prices opens up plenty of options for real estate investors. You could flip it, seller finance it, or rent it out, all while avoiding a negative cash flow situation.
If you’d like to learn how to reap huge rewards from tax delinquent property investing, Ted Thomas provides full support and complete tax lien 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.