To answer this question we have to make a distinction between a Tax Lien sale and a Tax Deed sale. Tax Liens and Tax Deeds are distinctly different in the Tax Lien and Tax Deed process, and should not be confused. The following definitions and explanations of each should clear up the confusion often associated with them. It is important to comprehend the process to clearly understand how a Tax Deed is finally issued, for it is the Tax Deed that you, as an investor, will be seeking at the auction. It is the Tax Deed that gives you title to the property – not the Tax Lien. With Tax Deed investing “Owning the Deed” – is the goal.
A Tax Lien is a claim against assets filed by a taxing authority against property of a person who owes back taxes. A tax lien sale is the sale conducted by a governmental agency, of tax liens for delinquent taxes on real estate. A Tax Deed is an instrument of conveyance used to convey title to a property sold by the government to a third party because of non-payment or arrears of ad-valorem property taxes.
A Tax Deed sale is the forced sale, conducted by a government agency, of real estate for non-payment of taxes. Sale upon notice to the public and in which members of the public may bid, or an auction sale of property with notice to the general public. Usually after foreclosure, the property is advertised in the local newspaper in advance. The property is then auctioned off on the courthouse steps, or in a local government room, to the highest bidder – this is known as a “Tax Deed Sale”.
A Tax Deed can be issued on raw land, agricultural land, commercial property, single family residences and homes, condos, and developed lots. You can buy and sell Tax Deed properties as a means of support, as an investment to resell at a profit, or as an owner-financier, you can sell to a buyer for a monthly return, also at a profit.People can, and do, become millionaires from working Tax Deed Sales if they make the effort; investing time and money in Tax Deed Sales proves to be very profitable if they persist at it and if they work smart. Through Tax Deed Sales, the Tax Deed investor can snatch the property from the Tax Lien investor at public auction and then have an extremely valuable asset in their grasp for the future.
Here is a video that gives you a peak into the differing ways you can make money with this niche real estate market.
Working overages requires expensive skip tracing, and there is no guarantee of results. You can spend a lot of time and money fishing for that elusive big one, only to wonder why the fish are not biting.
Working overages, or even working what is known as “front running” are very good to do as an augmentation to your tax deed prospecting and investing, as they can generate over time, some residual income, which can then be turned back into purchasing the real estate.
If you are at the auction to definitely bid and buy, then always remain unattached and unemotional. Other investors can pick up on your energy and if they sense that you are an emotional buyer, they may play with you, pushing the bids up higher than the ceiling you have set for yourself for that particular parcel. Control yourself. This will save you money in the long run. Watch out for subtle bid-rigging. It happens, even if you can’t prove it.
Sale upon notice to the public and in which members of the public may bid, or an auction sale of property with notice to the general public. Usually after foreclosure, the property is advertised in the local newspaper in advance. The property is then auctioned off on the courthouse steps, or in a local government [...]
The delusion bubble of living beyond your means has popped for millions of good, hard working, people across the USA. No savings left, foreclosed on, perhaps unemployed. I know, it sucks! However, you are still who you are, hard-working, good, and hopefully employed! Don’t blow another delusion bubble – it too will eventually pop. Get [...]
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