Tax Deed

Interested in the real estate game, but not the high risk attached to it?  Purchasing homes through a tax deed is the road for you!  A tax deed is placed upon a home after failed attempts are made to get the property owner to pay back due taxes.  Generally a tax lien is first put on the home and sometimes there is an attempt to sell a tax lien certificate to investors, but in the end if there is no success in retrieving the money due the government will seize the home and sell it through a tax deed sale or auction.

In order to find these properties investors can do a simple internet search for local tax deed sales and auctions.  They can then view a list of properties and get researching before the big bidding day.  Once the bidding day has passed investors will have several options as to what they can do with their new tax deed property.

If there is no interest in keeping the tax deed property then investors should try to sell it immediately.  Often placing it 50% or less below market value will attract other investors that can pay cash on the spot and that will pay the taxes due on the property.  By following this method of pricing the tax deed is sure to land in the next pair of hands within a very short period of time.  Who can pass up a deal as good as 50% or more off?

Another thing that deed owners can do is rent the property out.  If the property is in a neighborhood that yields a good percentage of renters and the investor can afford to immediately pay off the back due taxes renting out the property could prove the be a very wise investment indeed.

One thing that more and more investors are doing is offering financing to people interested in buying the deed homes.  It is getting harder and harder to finance a house through banks, because of the current housing crisis.  Investors are taking note of this and offering personal financing to people who can put down big chunks of money up front.  Because deed houses are generally free and clear of all mortgage liens simply getting enough of a down payment to cover the back due taxes with perhaps a little extra income would be enough.  Through offering personal financing on their tax deed homes investors stand to make a stable income for years to come.  By making all or most of the down payment non refundable investors are lowering the risk of not having someone to rent out their property.

Investors can rest assured that whatever they decide to do with their deed will be a good idea.  They can make money despite what they chose to do with the deed property.  Investors can make less money quickly or more money over time; whatever they are in need of.  Tax deed homes are definitely the way to go in the real estate market.