There is a great deal to learn about buying and selling tax deeds and tax lien certificates. But the beauty of this business is that you can learn as you earn. There are two ways to obtain tax defaulted properties.
1. Learn all you can about the area in which you want to invest. Do it on your own and research articles on the subject. Visit courthouses, talk by phone and by email to the taxing authorities. Buy or obtain free lists of delinquent properties from the Assessor, Treasurer or whoever handles the lists in that particular county or state. This can be a long drawn out process, but that is how I had to begin. Once you have the lists, submit your bids to them using the proper procedures.
2. Or, you can sign up with a program that already has everything available to you and you can begin your buys and sells immediately.
The one thing I would like to bring to your attention is that using the internet you can buy and sell tax liens or tax deeds in any state in the U.S. You are not limited to your own locality. And, really, you can make a fortune very easily buying and selling tax defaulted properties.
Let me suggest the Ultimate Guide for Buying Tax Delinquent Land and Homes -- Land for Pennies eBook
Monday, May 5, 2008
Sunday, May 4, 2008
What is a Tax Deed?
Answer: A tax deed used to convey title to property sold by the government because of non-payment of ad valorem property taxes.
Almost every state in the U.S. sells delinquent tax properties by Tax Deed. These properties are often sold at incredible savings to the purchaser. If a property owner fails to pay his property taxes, the taxing authority will offer the property up for sale at an auction or through a negotiation process. These properties are offered to the public.
The taxing authority may be the state, the county, a city or a municipality. The owner of the property will receive a number of warnings that unless the back taxes, penalties and interest are paid by a certain time, the property will be sold.
Tax deed investors purchase the actual property. They are not looking for a return in the form of an interest rate. They may be able to obtain the property just for back taxes, interest and penalties.
Tax liens are another method of purchasing tax defaulted property. Tax lien investors are interested in interest rate returns. But they can also obtain property if the owner does not redeem within a stated period of time.
We will look into both options.
Marion
Almost every state in the U.S. sells delinquent tax properties by Tax Deed. These properties are often sold at incredible savings to the purchaser. If a property owner fails to pay his property taxes, the taxing authority will offer the property up for sale at an auction or through a negotiation process. These properties are offered to the public.
The taxing authority may be the state, the county, a city or a municipality. The owner of the property will receive a number of warnings that unless the back taxes, penalties and interest are paid by a certain time, the property will be sold.
Tax deed investors purchase the actual property. They are not looking for a return in the form of an interest rate. They may be able to obtain the property just for back taxes, interest and penalties.
Tax liens are another method of purchasing tax defaulted property. Tax lien investors are interested in interest rate returns. But they can also obtain property if the owner does not redeem within a stated period of time.
We will look into both options.
Marion
Friday, May 2, 2008
Get Your Ducks in a Row
Before you begin your negotiations and purchases of tax liens and tax deeds, I would suggest that you educate yourself to the process. If you have the financial ability to buy some information, you will be way ahead of the game. When I started, I had no money. Consequently, I had to spend countless hours -- night and day at the computer -- searching the internet for any small piece of information that might be available. Frankly, there was hardly anything on the internet at that time relating to the subject.
Today there is a tremendous number of books, websites, articles and products to ease you into it quickly and painlessly. Every imaginable contingency is covered to get you organized, educated and you can even get property lists without having to visit courthouses all over the U.S. What a blessing it would have been for me if I could have had such advantage.
There is a distinct difference between a tax lien certificate and a tax deed. You will learn which states do tax deeds and which states sell tax liens.
To get an overall picture of what is necessary and what is available, run over to The Informed Investor right now.
I'll be back later ...
Marion
Today there is a tremendous number of books, websites, articles and products to ease you into it quickly and painlessly. Every imaginable contingency is covered to get you organized, educated and you can even get property lists without having to visit courthouses all over the U.S. What a blessing it would have been for me if I could have had such advantage.
There is a distinct difference between a tax lien certificate and a tax deed. You will learn which states do tax deeds and which states sell tax liens.
To get an overall picture of what is necessary and what is available, run over to The Informed Investor right now.
I'll be back later ...
Marion
Wednesday, April 30, 2008
What Methods Should One Use?
The methods for making money in real estate are myriad. To name a few: REIT's (Real Estate Investment Trusts), buying undervalued real estate to rehab and resell, buying a property and making it into a rental and other options as well. Whether you buy the property through tax liens or through tax deeds, you will need to decide how you want to conduct your business.
Rehab was out for me. I am not a carpenter and to really make that work for you, you should be able to do much of the work yourself. I had to evaluate what I could do financially and physically. I went with tax defaulted land. And it worked out great!
I wanted to work at it from home. That meant -- my computer. That made the entire U.S. accessible to me. But I was not ready to buy houses sight unseen. So I purchased nice vacant lots in resorts that had exciting amenities and Property Owner Associations. I learned to negotiate with taxing authorities in a few counties in a few states to buy their tax deeds on defaulted properties.
As I got better at it and more comfortable with it, I did purchase a few houses. That was much more complicated but the profits were much greater. When you start at the beginning and purpose to learn each step of the way, you can grow into more advanced areas and techniques.
Along with the direction that I will be providing, I am going to direct you to products and professionals so that you will be able to go forward avoiding the pitfalls that many fall into. Some of them will have actual tax lists that provide you with the actual defaulted properties and the taxing authority that you will buy from. They will have tax lien lists and tax deed lists. You can do this business locally or nationwide.
I have used mostly tax Deeds in my business, but other investors prefer Tax Lien Certificates. You can use both. Stay tuned ...
Rehab was out for me. I am not a carpenter and to really make that work for you, you should be able to do much of the work yourself. I had to evaluate what I could do financially and physically. I went with tax defaulted land. And it worked out great!
I wanted to work at it from home. That meant -- my computer. That made the entire U.S. accessible to me. But I was not ready to buy houses sight unseen. So I purchased nice vacant lots in resorts that had exciting amenities and Property Owner Associations. I learned to negotiate with taxing authorities in a few counties in a few states to buy their tax deeds on defaulted properties.
As I got better at it and more comfortable with it, I did purchase a few houses. That was much more complicated but the profits were much greater. When you start at the beginning and purpose to learn each step of the way, you can grow into more advanced areas and techniques.
Along with the direction that I will be providing, I am going to direct you to products and professionals so that you will be able to go forward avoiding the pitfalls that many fall into. Some of them will have actual tax lists that provide you with the actual defaulted properties and the taxing authority that you will buy from. They will have tax lien lists and tax deed lists. You can do this business locally or nationwide.
I have used mostly tax Deeds in my business, but other investors prefer Tax Lien Certificates. You can use both. Stay tuned ...
How to Get Land Dirt Cheap
Investing in real estate has been historically and continues to be the fastest and easiest route to wealth for those who were not born with the financial resources to get there by another route. This blog is all about reaching that goal through buying and selling tax deeds and tax lien certificates. These are properties that taxing authorities are selling as a result of owners who are in tax default. The owners have let the property go and the taxing authority now sells them through land auctions and negotiation.
The properties can be held as an investment for appreciation or it can also be exciting and fun to locate a property and purchase it way below value then turn around and sell it for a nice hefty profit. One would think finding such deals would be difficult and rare. But I am here to tell you that those deals are a daily occurrence and may be even in your very own back yard.
However, even if you live in an area where very few of these properties exist, in this age of internet and airplanes they can be delivered right to your finger tips. Tax deeds and tax liens are available in every state in the U.S. They can be bought and sold by letter, by email, by phone and by the internet.
I have files of transactions I have made in the past few years that absolutely transformed my bank account. Properties I purchased in other states and didn't have to leave town to do it. You can do it too.
So, let's get started . . .
The properties can be held as an investment for appreciation or it can also be exciting and fun to locate a property and purchase it way below value then turn around and sell it for a nice hefty profit. One would think finding such deals would be difficult and rare. But I am here to tell you that those deals are a daily occurrence and may be even in your very own back yard.
However, even if you live in an area where very few of these properties exist, in this age of internet and airplanes they can be delivered right to your finger tips. Tax deeds and tax liens are available in every state in the U.S. They can be bought and sold by letter, by email, by phone and by the internet.
I have files of transactions I have made in the past few years that absolutely transformed my bank account. Properties I purchased in other states and didn't have to leave town to do it. You can do it too.
So, let's get started . . .
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