Tax Deed Investing

Are you looking for a way to make good money quickly?  Are you interested in real estate, but uncomfortable with sailing the stormy seas (in other words the current housing crisis)?  Are you happy to call people that you don't know and willing to offer your services?  If your answer to any or all of these questions is yes than tax deed investing is the job for you.

The concept of tax deed investing is rather simple.  It all starts when a property owner fails to pay their property or income taxes.  The government then makes several attempts to retrieve payment from the owners, resulting in a tax lien being placed upon the property.  There is a redemption period, after the sale of the tax lien certificate or deed (non-absolute), in which the owner can pay off the back due taxes and still remain the sole owner of their property.  If the owner wishes to sell the property within this period of time (despite the "sale" at the auction) they have every right to.  This is where tax deed investing becomes interesting.

It is often suggested that investors head to tax sales to purchase properties.  This is completely inaccurate.  If you head to the auctions for your tax deed investing you will be sorely disappointed, because the properties usually sell at or close to market value.  The time to get your properties is after the foreclosure auctions and nearing the end of the owner's redemption period.  This is when owners are desperate to get at least something for their property or they care so little about the property that they are willing to sell it for a low price.

Researching the contact information of the owner is the first step in getting your tax deed investing started.  Once you get in touch with the owner, phone is usually the best way although snail mail and mail are alternatives, you can begin to negotiate.  Start at a low price.  Offer them the opportunity to give up the property and make an easy $200 just for signing some papers.  Negotiations can start there.  Some owners may be ok with a small amount up front but might also be interested in getting a certain percentage of profits from the sale of the property.  You could still be making thousands, or even tens of thousands of dollars if this were the case.

The nice thing about tax deed investing is that it doesn't weather the same storms as other real estate ventures.  While homes are foreclosing all across the country houses helpful to the tax deed investing cause are popping up out of the woodworks.  And there is no need to worry about a slow real estate market, because a price as low as you can offer can't be beat, so people will most definitely be purchasing your homes.  Renting is always an option as well as personal financing (which is extremely helpful as banks are beginning to tighten their reigns).  Tax deed investing is the calm that knows no storms.