When tax deed auctions take place, the county is going to advertise it in the local newspapers and take note all properties to be auctioned. This give time to any investors who would plan to bid, to research the property they’re interested in. Then, decide if it is worth buying. Properties put up for auction has a total price which includes back taxes, interest, and any fees that have accrued along the way. The price is significantly lower than what the property is actually worth in the real estate market.
Many investors are attracted to tax deed auctions because of this reason. Plus the right of ownership is given to whoever wins the bidding. Live in it, rent it out, or flip for more profits. It is now up to the investors to decide on what to do with their property. After all they’ve earned it.
If you’re new to the idea of purchasing properties with defaulted taxes, then you must research and learn as much as possible about tax deed investing, prior to making your very first purchase. Take note that not all tax deeds are good to buy or bid on. This is also true with any piece of real estate and you must be diligent in order to avoid a poor investment plan. Also, you need to check out which states conduct tax deed sales. Remember that there are do’s and don’ts to look out for.
Keep in mind that not all states allow tax deed investing. Some hold tax lien sales which is not the same with tax deeds. So, if you want to enjoy in this lucrative investment strategy, put in some homework in order to be successful.
You’ve got lots of options to choose from if you are looking to expand in real estate investing, specifically in tax deeds. You can purchase tax deed property, which is one of the most profitable investments today in the real estate business.
One word of advice, skip the tax sale. There are so many competitions in a tax deed sale to acquire a really good deal. Also, you need lots of money to be a tough contender especially when there are big investors around. Besides, there is a waiting period before you can become the new rightful owner of the property. It is best to purchase tax deed property that you can get right away.
Invest in tax deed properties that are in states in which the redemption period is after the sale. This is the best way of getting properties you like. You can simply narrow down which properties are profitable, just by taking a look at what happened at the recent tax sale. Also, you’ll see those that are worthless.
It is time to make some serious cash, now that you have owned a tax deed property bought for less than its market price. But what if there are ways to earn more profits from the property you’ve bought? What is the next step to take? There are a lot of options actually. Here are a few you can do:
If you do not want to keep the property for a long time, then do not pay the taxes and sell it as soon as possible. You can flip the property by putting a right price on it but at a lower price of course because of the amount of taxes. Doing so would attract potential investors with lots of money. The new buyer would pay the taxes and you will still walk away with many profits.
Another option if you have decided to keep the property is to take care of its tax problem first. If it is situated in a good rental neighborhood, then it is best to keep it. You can earn money out of the property with a loan to finance other deals. Let the rent money cover the mortgage payments and you are good to go.
Sale of tax deed have traditionally been an amazing market sector in which to invest your hard earned money in real estate. Great deals on tax delinquent properties that are well below market value are always available, if you know where to look for them.
Tax deeds investing have proven to be a wonderful source of profits for a savvy investor. Also, fortunes have been made by those who really strive to learn and research on this lucrative investment. The tax deed business is currently entering a prosperous time even in today’s struggling economy. Now is the best time to grab this opportunity to make profits from this business. This is why lots of investors are looking forward to invest in tax deeds.
Alaska is a tax deed state. Like other states, individual towns and cities are responsible for the assessment and collections of property taxes. However, the municipality plays an important role in the selling of tax deed auction properties.
Municipalities in Alaska are required to present a list of foreclosure properties, based on which ones have delinquent taxes. They do this once a year to the superior court of the state. This course of action has the same effect as to the foreclosure of individual properties. Foreclosed properties are then transferred to the municipality for the amount of tax liens owed.
Properties that are transferred are held by the municipality for at least a year. This is where the redemption period begins for the delinquent homeowner of the real estate. The homeowner still has the right to possession though during this period of time and even after the foreclosure, and transfer of ownership to the municipality. However, if the homeowner intentionally damages the property, the municipality may declare immediate forfeiture.