Tax Deed Auction

So you were looking through the newspaper and noticed an ad for the local tax deed auction and you wondered "what is a tax deed auction?"  "Could this be the answer to my financial woes?"  "How can I get involved in this tax deed sensation?"  Look no further for the answers to these questions.  Beginning the journey to the next Tax auction is as easy a 1-2-3.

1. Find out where the next tax deed auction near you will be.  Simply run an internet search or pull out that newspaper you were perusing earlier.  Or if you are a memeber of No Risk Investor we provide all of the auction lists and schedules for every auction in the country.
2. Research the listed properties.  First you'll want to find out if the deed being sold at the tax deed auction is an absolute deed or not.  An absolute deed has no encumbrances attached to it, which means that there is no redemption period allotted.  In other words when you buy the home from the tax deed auction the title is yours free and clear.
3. Next you'll want to research the location and prices of homes sold in the areas of the home listed for sale at the tax auction.  You definitely want to have an idea of the fair market value of the home, so that you are not bidding over that.  Possibly drive by the home to get some sort of a look, since you won't be able to have inspections done before the big bidding day arrives.
4. Once you've won the bidding and inspected the property make a decision as to what you will do with it.  Some of your available options are selling, flipping, leasing to own, or renting out, or living in.  Making a choice about what to do with the property you won at the tax deed auction is essential.

If you wish to sell the property do it right away.  Pricing the property at 50% of market value, or lower, will attract investors that pay cash and that can pay off the back due taxes themselves if that is necessary.  Flipping is a good option if there is enough equity in the house for a loan or if you have enough cash on hand to do all the work required.  Through leasing to own and renting you stand to make a large profit over time and a smaller profit up front through the down payment.  Living in your tax deed auction home can also be beneficial, since you would be living without a mortgage payment.

When succeeding at the tax deed auction process is as easy as 1-2-3 there is no need to search for any other real estate experience.  A tax Investing can offer a great return on your investment.  You can make as much as 18% to 50%.  With the right tools in your pocket and a mound of thorough research by your side (not literally) attending a tax deed auction is most definitely the answer to your financial woes.