Thursday, 18 December 2008 17:00

Tax Deed Sales: Property for Pennies on the Dollar

Written by Eddie Stewart
Rate this item
(0 votes)

Tax deed sales offer wise investors an incredible opportunity to pick up properties for pennies on the dollar.  What does pennies on the dollar mean?  If a property is worth a dollar, then you are able to buy the property for a portion of that dollar.  That's where the term comes from.  That may be basic for some but many need the explanation.  So if a property is worth $100,000 and I buy it for 20 cents on the dollar then I bought it for $20,000.  Pretty simple, right?  Well, when you buy properties for pennies on the dollar it allows you incredible opportunity.  The margins are incredible!

 

Tax Deed Sales offer government tax foreclosure properties for sale to investors for just that, pennies on the dollar.  Investors get a list of properties to be sold at the tax deed sale, research the list, and then attend the sale to buy those properties at incredible discounts.  By law, the county must publicly announce the tax deed sales.  The county offers the government tax sale properties at a starting bid where the properties are delinquent.  That means that if a property owner hasn't paid $5,000 in taxes over the past few years and the county has finally foreclosed on that property then they will auction off the property starting at $5,000 plus any additional costs incurred by the county to foreclose on the property.  It's usually a pretty stellar deal.  Just make sure you research the property and it meets your criteria before bidding.  It's also important that you maintain composure during the tax deed sale, as it is easy to get caught up emotionally in the bidding and bid away your potential return.  This is often the case in California counties as it is usually pretty competitive.

The opportunity is incredible at tax deed sales as investors can buy properties for a fraction of the fair market value.

One thing John Beck and other tax lien and tax deed investor educators fail to tell new investors is that if you want to buy that pretty little house in the cul-de-sac at the tax deed sale then it will probably be pretty competitive.  If you're looking for a house to live in you may be able to find it at the tax deed sale but instead of trying to buy it and compete with everyone else why not buy a bunch of other properties way below value that attract less competition?  Buy and sell a bunch of those, make a ton of money, and then buy your dream home.  I like that strategy more. Otherwise you'll get frustrated competing with everyone else at the tax deed sale.

We actually teach students how to invest in tax deeds all over the country and not just in their home county.  Not bad, eh?  That presents our members with incredible opportunity.

No Risk Investor is the ultimate resource and tool for investing at tax lien auctions, tax deeds, and real estate strategies for 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 Thursday, 06 May 2010 10:37
Eddie Stewart

Eddie Stewart

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Add comment