Tuesday, 18 May 2010 13:09

Tax Deed Exit Strategies

Written by Eddie Stewart
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When purchasing tax liens and certainly tax deeds, investors desire to own the property.  Owning the property gives the investor a great opportunity to make lump sums of money.  Lump sums means that instead of your return being stretched over a longer period of time through an interest rate, your money is made in one lump sum.  Lump sums are realized when the sale of the property is made.  Let's talk about some lump sum exit strategies along with other options an investor has after purchasing tax deed properties or taking tax lien certificates to deed. Sell it. Flip it. Live in it. Sell your contract. Rent it. Hold it. Each of these strategies can be an excellent way to monetize your tax deed or tax lien investments.  Each requires different skill sets and attention, though.  When considering selling the property, you would follow typical selling strategies.  List the property or contact an agent to help sell the property.  Ideally you would have a buyer in place before the purchase is made.  If you want to flip government tax foreclosure properties you need to make sure the margins are there that allow you to sell the property at a discounted price to move it quickly.  Another option, which many investors love, is to 'owner finance' the tax lien properties to your buyers.  Especially in this economy, it may be difficult for buyers to get financing.  Requiring a down payment and monthly payments that make sense for you can be extremely profitable. You can also live in your newly acquired tax foreclosure properties.  If purchased at tax deed sales then chances are that repairs will be necessary.  Many homes are in move-in condition while many others are not.  That will be part of your due diligence before the purchase. We will continue our discussion of tax deed exit strategies in the next blog post. No Risk Investor is the ultimate resource and tool for tax liens, tax deeds, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, an online auction center, an investor community and much more for its members.
Last modified on Tuesday, 18 May 2010 13:33
Eddie Stewart

Eddie Stewart

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