Tax deed is a profitable investment that begins when a homeowner fails to pay his due taxes on a property. The local government takes the property of the delinquent taxpayer, and puts it up for auction because of non-payment of taxes. The government would not only acquire the taxes owed but also the interest, court fees, and other costs that come along with it.
The government would then announce to the public that they’ll be conducting a tax deed sale that would attract potential bidders. The bidder that bids the highest is going to get the property. Usually, the successful bidder wins the property that is well below its current market value.
Tax deed delinquent properties present an amazing opportunity for investors to own properties or resell them later on for more profits. It is a real estate business which can last for so many years and maybe forever, especially in today’s tough economic times.