What are the Rewards in Tax Deed investments?
Tax Deed Sales - The Foreclosure Approach:
Tax Deed Sales provide an opportunity to obtain real property through foreclosure. This method is the least common way to foreclose on tax delinquent property. Typically, no certificates are sold and the sale occurs at the county level. The property owners are given ample time and opportunity to pay their delinquent property taxes. If delinquent property taxes are not paid (cured), the properties are auctioned off at oral-bid, Tax Deed Sale public auctions. Some states require that only the back taxes, interest and administrative costs be paid. Others, like the state of California, require an opening bid that is half of the fair market value of the property. Click Here to Start Investing in Tax Deeds.
Type of Real Estate Sold at Tax Deed Sales
All real property is subject to sale if the property taxes go unpaid. This includes:
- Unimproved land and lots
- Improved lots
- Houses and other buildings
- Commercial property
How much should you bid?
- Always perform a detailed research of the property. Only then can you make a final decision.
- Most states are not out to get top dollar.
- Whether you invest in the property or simply buy the tax deed, you can still get a good investment.
- Learn local values for similar properties.
- Obtain any information regarding the construction, condition, floor plan, landscape and age of the property.
- Conduct a detailed inspection of the property.
Risks of Tax Deed Sales
Investigate Internal Revenue Service "IRS" Liens. Internal Revenue Service liens remain with any properties sold at tax deed sales. The amount of the IRS lien will determine whether or not the property will be a good investment. Be sure to visit the county recorders office and check to see if an IRS lien is recorded against a property before you bid on it. Research before you BID!
ALL SALES ARE FINAL. Once your bid has been accepted, it is final and you are responsible for your bid amount. No contingencies are allowed. If you need financing, have it arranged in advance.
Click Here to Start Investing in Tax Deeds.
