What is the best way to make lots of money from a tax deed property? Here are two options you can take advantage of:
Liquidate the property even before you pay the taxes. Do this to earn quick cash. Other real estate investors would be calling you right away by putting a right price to the tax deed property. The amount of taxes would affect the price by lowering it but this would also allow the property to be a really good deal, and would sell off faster than you know. The new buyer of the property would pay the taxes and you walk away with profits in the pocket.
Another option is to keep the tax deed property. Redeem it as soon as you can. You can then rent it out, thus creating a monthly income. You can also fix the place up if there’s any damage to make it look like new, and sell for a full price to interested buyers.
With tax deed property investing, there are also lots of other options you can do to make profits. Due to the rising number of foreclosures, now is the best time to take advantage of this wonderful opportunity.
In a tax sale of delinquent properties in which the homeowner has failed to pay its property taxes, there are cases wherein the county takes a different action than selling a lien. What they do is sell the property at a tax deed sale. It is because tax deed is also a very profitable investment. This is true especially in tax deed states where properties are sold in order to acquire back taxes. In fact, investors who join the sale have the opportunity to buy real estate at less the market value.
Furthermore, there are counties that sell redeemable tax deeds, in which the property’s deed is put up for sale to the public. But there is a redemption period given to the homeowner, for him to redeem his property by paying the tax debt. In that case, the homeowner must pay the investor the interest or penalty, which can be quite high. This makes it a fruitful experience for the investor.
Did you know that one of the safest places to invest money is in real estate? If you are thinking of investing your hard earned money in this industry, then consider tax lien and tax deed.
Counties greatly rely on money from property taxes in order for them to conduct their public services. The county takes charge of the delinquent property, and would sell off its lien to an interested investor at a tax sale. The winning investor then pays the taxes on the property. If the property owner fails to pay off his dues after the redemption period, the investor can foreclose it. This is a good investment because the investor gets a nice return of investment by the interest rate he acquires. It is also good to know that a tax lien is ahead of other liens, so the investor would surely get paid.
Due diligence in tax lien and deed investing can go a long way with the right information and proper research. You can simply become an investigator to add other steps that would help in your due diligence.
The first step to help you in your goals is to find out what type of lien is held against the property you’re interested. Also, how much it is for so that you can set a budget. This information is stated in the tax list itself. It can also be found in public record sites such as the county assessor office and treasurer’s office.
You are going to find very important data by gaining access to the lists from the county office, newspaper, and other sources such as the internet. This would help in finding out more about the lien and the property itself. It is crucial to weigh all the factors surrounding the property to know if it’s a worthy investment or not.
There are times when you meet a special variety of homeowners who has left their properties to be sold at a tax sale. We are talking about people who inherited properties they do not want to be responsible for. They are either living far away or do not see the property as important. In short, they want it gone.
Investors can take advantage of this opportunity by offering to take care of the deed for them. Offer a decent amount of money for the hassle of doing the paperwork. They may take or reject it but with the property talking and persuasion, a deal can be made.
Take advantage of the current foreclosure rate because it may not last forever. Now is a great time to get into tax deed sale investing. Do not wait any longer.
There are lots of various ways to make a profit out of investing in the U.S. property tax system. Four ways immediately pop out and they are:
a. Tax liens
Tax liens are an awesome choice of investment for investors who has a lot of cash to spend, since it is necessary to invest huge sums of money to get a good return. Luckily enough, you might stumble upon a tax delinquent property that only requires small investment. There are tax lien states that offer high interest rates. You may get lucky and even acquire the deed to the property of those homeowners who failed to redeem. The downside though is that you may have to wait up to 2 years to get paid because of the redemption period.
b. Tax deeds
This is a straightforward type of public bid auction. You would potentially own the deed to the property of your own choice. Tax deeds are an easy investment since they are just picked up for taxes owed.
c. Deed grabbing
In deed grabbing, you do not have to bid for the deed because there are two ways to profit from this method. First it to work numerous tax deed sales in advance by looking to contact the homeowners. Then, send out huge numbers of mails asking the owners to “Quit Claim” the deed over to your before the tax sale comes. Once you get the deed to the property, you’re the new owner.
d. Tax deed overages
Overages occur after the auction of tax deeds. It is also known as excess funds which are overbids on tax sale properties during a sale. The way to do this strategy is by finding the former owners of these properties that were left behind. The government notifies them by mail but some has already left. So, find them and offer to help recover their funds and charge a finder’s fee for your hard work.