Are you interested in foreclosure homes put up for sale? Maybe you have read information in the internet outlining the big potential in returns of investment. In which investors are anticipating from the real estate market.
There are so many ways of purchasing properties facing foreclosure. Even though you can find them through a real estate broker, bank, and others but the real money is not from these sources. Investors who are making high profits are purchasing properties via a lucrative and low risk strategy. This strategy is through tax deed auctions.
Tax deeds are a great investment since it allows you not to go through the redemption period like in tax liens. Today’s real estate market is plentiful with residential properties, commercial, and raw lots available for you to purchase and sell later on for more profits. One of the most important things to remember when you join a tax deed auction is not to bid blind. Do the needed background information on each property you like on your list, so you can feel confident in every decision you’re going to do.
Some homes would demand more in repair maybe because the previous owner has neglected it. Some lots are too small to build upon your dream home. So, it is wise to spend money on a higher priced but quality property, than to bid low and pour money into a house which needs to be heavily renovated.
Using the free resources you can get your hands into can make buying tax deed properties not that difficult. A good example of this is Google Earth. It would give you a good street view as well as bird’s eye view of the properties you like in a specific location. Through this you can easily decide if you’re going to spend time and money on those properties.
This task benefits you in three things. First, you have already done your research by seeing the properties yourself. Second, it helps in remembering your primary selections. Third, your decision is sound if ever you decide on which ones to buy and win the bidding.
Buying tax deed or tax lien properties is the next step to owning “bang for the buck” real estate from tax delinquent homeowners. But first you need to take note on some important things, which are crucial to your goals. Let’s discuss a few of them below.
You must determine how to pay when you’re going to win. When you buy properties at a tax sale, there would be little time to get a loan, run off to the ATM machine, or ask your family for some money. The county would want the money on the spot. You must be ready when this happens or else the property would be sold off to the next bidder.
Don’t forget to register to bid. This step is simple but can be difficult if you did not prepare. You would be required to show a government issued ID on every auction you’re going to attend. No ID means, no bidding. Furthermore, other tax lien or tax deed auctions require its bidder to register ahead of time. You would submit your data electronically for this. There would be a bidder card waiting for you on the day of the auction.
Every tax property auction is different so it is best to be ready always. Always contact the county office for questions and do an extensive research for any doubt you have in mind.
Investing in tax deed auctions has attracted many professional property investors in recent years. This makes it a highly competitive money making business particularly in metropolitan areas. However, if you are a keen investor, there is no reason to give up on any transaction no matter how many competitors you’ll be facing. Use some of the techniques below to succeed:
a. Attend live tax deed auctions. Online auctions tend to have higher competitions because of its convenience in bidding from the comfort of your own home. So, if you bid on those properties which do not take place online, then there’s a better opportunity of
b. If it is possible, pick a county near you that has a good number of valuable properties but is not a metropolitan area. Take note that institutional investors might show up in just less numbers if the county is more rural than populated.
Follow these techniques when attending live tax deed auctions to get your dream properties.
Tax lien certificates are liens put on properties by the county for non-payment of taxes. As such the liens are in first position ahead of mortgages, bank loans, and others. Anyone with a Tax ID number or Social Security Number can invest. This gives a wonderful opportunity to get a big return on your investment. This also gives a huge deal of protection because the value of the tax lien certificates gain interest on the value of the property.
With tax lien certificates, you are guaranteed to make profits. The government handles the sale and you just come in and bid on the properties you’re interested. After that, reap the rewards from your hard earned investments.