WHAT IS A REDEEMABLE DEED IN GEORGIA?
In “What Is a Redeemable Deed in Georgia?” Ted Thomas, America’s authority on tax liens and tax defaulted property investing, will show you how it’s different from a tax deed and give you a tip on how to maximize your profits with redeemable deeds.
Watch the video above or read the summary below:
Today, I’ll answer your question, what is a redeemable deed in Georgia?
I’m Ted Thomas, and for 25 years, I’ve been teaching people how to invest in tax lien certificates and tax defaulted property, which are called tax deeds.
Today I’m going to talk about redeemable deeds, which may cause a little question mark in your mind. I’ll talk about those redeemable deeds, and I’ll show you how to make money.
I’m going to give you some examples as we go along, and before I finish, I’m going to tell you about two mistakes that investors make regularly at the auctions. I’d like to show you how to avoid those.
What is a redeemable deed in Georgia? This causes a little confusion, but just stay with me, and I’ll explain it.
A tax lien certificate is a very simple process. If the the property owner doesn’t pay the tax on their property, the treasurer will confiscate the property.
In the tax lien states, they issue a tax lien certificate. In the tax deed states, they confiscate the property, then they sell it at auction.
To learn more about tax lien certificates and tax deeds, get the FREE Safe Haven Investor System course today!
WHAT IS A REDEEMABLE DEED IN GEORGIA AND HOW ARE THEY DIFFERENT?
Georgia does it a little bit differently, and there are a few other redeemable states. They do it differently.
So you go to the auction, and you bid like you’re trying to buy the property, which is what you’re trying to do. If you’re the winner, they will issue you a redeemable deed
If you’re saying, “Oh, my goodness, what is this all about?” well, it’s this.
It simply means a deed usually transfers a property. Like if I were selling my property to you, I would sign a document, and it would be called a deed. So now I’ve deeded the property to you.
If you are selling it to someone else, you deed the property to the third party. The point is, they’re going to issue you a redeemable deed. So what does that mean?
That simply means that if the property owner hasn’t paid their tax, they’re losing the property to you via a redeemable deed. However, you don’t get possession, not right away, anyway, but you do have the redeemable deed.
WHAT IS A REDEEMABLE DEED IN GEORGIA’S REDEMPTION PERIOD?
Now you have to wait. After one year’s time, if the property owner hasn’t paid, you will get the property. But most people will pay the tax.
Those people can come forward any day during that 365 days, and they can pay you whatever you paid. So you get all your money back. Let me say that again. You get all your money back. It’s not a losing situation.
WHAT IS A REDEEMABLE DEED IN GEORGIA’S PENALTY PAYMENT?
There is a penalty in Georgia. What is a redeemable deed in Georgia’s penalty rate? It’s 20%. That 20% penalty applies from day one to day 365.
Any day they come in and pay, they have to give you back all your money plus 20%. So that means you get a 20% return. That sounds like a good deal. Other states should that do the same thing, but let’s stay with Georgia.
If they don’t come in and pay, what’s going to happen? Well, in that case, you can actually start a foreclosure action and take the property. Then you get the property for whatever you paid.
WHAT IS A REDEEMABLE DEED IN GEORGIA’S RATE AFTER 1 YEAR?
Hang on for a minute, because you don’t want to be in too much of a hurry to take the property.
If you could just let that deed go into one more day to day 366, now they’ve been outstanding for 366 days. Now, you’re going to make 30%.
The first year, you earn 20%. The second year, you’re going to get 30%. Third year, you’re going to hit 40%. And if it goes into the fifth year, oh my goodness, 50%. Think about that.
Anytime that you have a situation in Georgia, you’re going to have a redeemable deed.
That means they can come in, pay all the money that you invested. And depending upon when they pay you, you’re going to get a 20% return, 30% return, 40%. You can go all the way up to 50%.
WHAT IS A REDEEMABLE DEED IN GEORGIA AND WHO SELLS THEM?
I don’t make the rules. I’m explaining the process to you. This has been going on for 200 years. This is not a new concept.
It’s a little struggle to get started. I’m going to repeat just briefly. With tax deeds, you’ll get the property immediately. With redeemable deeds, you do not get possession, but you get a penalty return of 20%. These are great investments.
Redeemable deeds have been around for a long time. They’re also available in other states.
The local government in the county is going to sell these properties. They’re going to have tax deed sales, and in Georgia they have 159 counties.
WHAT IS A REDEEMABLE DEED IN GEORGIA AND WHEN ARE THEY AUCTIONED?
Every county is authorized to have a sale every month.
If they only have one or two properties, they probably won’t have one. They’ll wait until the next month, but there could be as many as 159 auctions in Georgia every month. So you’re getting the idea.
If you do invest, you’re going to get your money back plus a penalty return of at least 20%. Where are you going to get that in any other investment? You’re probably not going to.
If the property does not redeem, you’re going to get the property. So think about these outrageous returns.
WHAT IS A REDEEMABLE DEED IN GEORGIA? A WAY TO GET PROPERTY!
If you’ll spend a little time with a coach, you can learn to buy certain properties that absolutely will not redeem. If they don’t redeem, then you know you’re going to get the property.
There are other properties, for example, at the country club. You’re probably never going to get one at the country club.
I hope you could call me up one day and say, “Ted, you are wrong. I got a nice one in the country club,” but usually in the country club the bidding goes too high. Also, those clients usually come in and pay the tax.
Other people might not come in to pay the tax. If they don’t pay it, you get the property. If they do pay, you make at least a 20% return.
WHAT IS A REDEEMABLE DEED IN GEORGIA? HOW TO PROFIT.
I have students that have purchased over a 100 properties in Georgia. That meant they went to more than a 100 tax defaulted auctions.
In some cases, they only made the 20%, but if they let it go into the second year, they made 30%. If they let it go even further, they can make 40%. You’re getting the idea.
Again, I didn’t make the rules. These rules are in place. Are rules going to be important? You’d better believe they are.
My students that really know how to do this, for example, the gentleman that did 100 deals became a coach. Can you imagine learning from a coach that’s done 100 deals? That’s the kind of place that you’d rather be.
The redeemable deeds foreclosure process is a legal process. Don’t worry about it. Actually, it’s all written up, so it’s easy to just send a bunch of mail.
Some people buy property, and they get it at such cheap prices, it’s amazing. I see people buying residential lots for under $1,000 dollars, sometimes $200 or $500.
They buy lots, then they resell them for thousands and thousands of dollars. There are literally hundreds of examples of people doing that.
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WHAT IS A REDEEMABLE DEED IN GEORGIA COMPARED TO A TAX DEED?
Here’s a question I get, “Ted, if I’m just getting started, should I go for a redeemable tax deed state? Or should I just go with a tax defaulted auction?”
Well, it depends on where you live. If you live in a state that’s already selling redeemable deeds, just stay right there and buy them because you know you’re going to get at least a 20% return.
If you’re in it for the big bucks, most of the investors that are entrepreneurs and are kind of mavericks, what they really want to do is buy at a tax deed auction so that they get the property.
They’re trying to buy the properties at 60%, 70%, or 80% discounts. Then they have a lot of margin to resell them.
So if you’re kind of a maverick, the kind of person that wants to get the property, you sometimes get the property in redeemable states, but you’re going to always get the property in the tax deed states.
WHAT IS A REDEEMABLE DEED IN GEORGIA AND WHAT IF THEY DON’T SELL?
Now that we’ve answered what is a redeemable deed in Georgia, let’s talk about what happens at a redeemable deed auction to properties that do not sell.
They’ll probably put them up again the next month because they do an auction every single month. So they’ll try and sell it the next month.
If they don’t get them sold, they’ll put them on a special list. I don’t know what that list is going to be called because there are so many different names for it.
In Illinois, they call it a “scavenger list.” In Texas, they call it a “strikeoff list.” And in Florida, they call it a “leftover lands list.” In South Carolina, they call it a “forfeited lands commission.”
The point is the property did not sell at auction, so the county still has it. You could actually go to the county physically, or you could go online and see if they’ll sell it to you that way.
WHAT IS A REDEEMABLE DEED IN GEORGIA AND MISTAKES TO AVOID
I promised you I’d tell you about two mistakes, so here they are. Now, this is important.
What happens to people at an auction is they get very excited. If you’re excited, you’re going to do things that you normally wouldn’t do.
One of the things that you don’t want to do is raise your hand or your bidder card and try to buy a property if you haven’t looked at the property.
You wouldn’t marry a woman if you hadn’t seen her. So don’t even think about buying a property if you haven’t seen it.
If you haven’t had boots on the ground and eyes on the property, you don’t want to buy it. You just want to let that go by. Because you don’t know what could have happened.
There could have been a hurricane or a fire. It might be next to a chicken farm, and you don’t want to be next to a chicken farm. I know that.
So that’s number one, and number two is very similar.
You get to the auction, and you’re excited. The bidding is going back and forth. You miss the one you wanted so you get to bidding on the next one.
Well, wait a minute. How can you bid on the next one unless you have an exit strategy?
What’s an exit strategy? It means, you know what you’re going to sell it for. You don’t want to buy a property if you don’t know what you’re going to sell it for. Because what will happen is you’ll bid, and you might win the auction.
Well, it’s not important to win the auction. It’s important to get a great deal on the property. If you don’t know what you’re going to sell it for, you shouldn’t be buying it. That’s what exit strategy is.
In “What Is a Redeemable Deed in Georgia?” Ted explains how redeemable deeds work.
You get back everything you paid, plus at least 20% interest, and if you aren’t paid, you get the property.
From day 1 to 365, you receive 20%. After a year, the interest rate goes up.
So if instead of foreclosing, you wait until day 366, you could get 30% interest. If you wait an additional year after that, you could get 40%. Or maybe you want to wait even longer to get 50%.
Is a redeemable deed better than a tax deed? That depends on your objective. If you want to be sure you’ll get the property, then a tax deed would be better for you.
With a redeemable deed, you may or may not get the property. It depends on if the property owner redeems it. If the property owner pays, then you get at least a 20% return.
If you are interested in buying redeemable deeds and getting the property, Ted and his coaches can teach you how to look for properties that won’t be redeemed.
For over 25 years, Ted Thomas has been teaching students how to invest in tax defaulted property, and many of them have gone on to become very successful.
Ted has a team of experienced coaches and guidance facilitators helping students every weekday with research and auction preparation.
Ted Thomas coaches dispense expert advice in weekly Q&A webinars about tax liens and tax deeds. Nobody offers more support. Ted is the only one who has a complete support system to ensure you have the best chance at success.
If you want to start your education today, you can do that absolutely FREE by getting the Safe Haven Investor System course (valued at $197), as Ted’s gift to you.
Safe Haven is 2 hours of streaming videos and a 100-page illustrated manual that teaches you all about tax lien certificates & tax deed investing. So be sure to get your FREE Safe Haven course today.