Investing through property tax sales has proven to be a great way to make money. Tax lien and deed investing can be one of the most lucrative investing strategies. Of course there are risks involved, but all can be avoided through proper preparation and knowledge. Let's talk about some ways that savvy investors are making money through property tax sales.
(Just a side note, property tax sales can also be called tax deed sales, tax foreclosure sales, tax sales, sheriff sales, or other similar terms. Don't be alarmed if a county calls it something different.)
TWO AMBITIONS
Investors have two ambitions when investing at property tax sales. The first is to make a state-mandated rate of return on their money. The second is to take ownership of greatly discounted properties. The first is easier than the second, but the second offers greater returns. The first also requires less start-up capital while the second requires more. An investor can buy a tax lien certificate for a couple hundred dollars but, although John Beck preaches differently, a valuable tax deed can only be bought for thousands. John Beck teaches that you can buy houses for $300. Don't be fooled. It will take work and money to make money. We just want to make the process as simple as possible.
TWO MAIN STRATEGIES
There are two main ways to purchase tax lien certificates and tax deed properties through property tax sales. The first is by attending the auction and purchasing there. The second is by purchasing after the auction takes place. Not all counties will allow you to purchase tax liens or deeds after the auction, especially with tax deed properties. Although tax deed counties rarely allow the sale of deeds after the auction, many tax lien counties offer the tax liens after the auction. There are advantages and disadvantages for both strategies. There are other strategies that are discussed in other blog posts but they are more advanced.
When buying tax lien certificates through property tax sales, the state mandates the return. The return is usually between 12 percent and 18 percent. When buying tax deeds through property tax sales, houses can be bought for as little as 5 percent of its market value. When you know what you're doing, investing through these sales can be an excellent investment.
No Risk Investor is the ultimate resource and tool for tax lien, deed, 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, and online auction center, an investor community and much more for its members.
Last modified on Monday, 28 June 2010 08:44
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Tax Deed Investing
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