ROI on TDI

25 Jul ROI on TDI

Return of Investments in Tax Delinquent Investments

There are a lot of ways to make a profit on real estate and one of them is investing on tax delinquent properties. Tax Delinquent Property means that the landowners have not made any real property tax payment to the local county and or authority for their said land thus making the land delinquent. Investing on Tax Delinquent Properties can be very profitable if you know how to approach these tax delinquent landowners. But before one starts approaching these people one should know some of the terminology and its definitions in connection to Tax Delinquent properties.

One of them is “Tax Lien Property”. Tax Lien Property means that the said property has been legally claimed by one person/company/entity from the landowner to secure a payment from the landowner’s debt to satisfy an obligation. Then there’s “Tax Deed” which means that the land title deed is issued by the public authority to a purchaser or buyer because of nonpayment of taxes. Investing on these types of delinquent properties can be very profitable but it could take a longer period because the landowners can be given up to five (5) years to redeem the said delinquent property and also the said procurement might have to undergo public bidding. So before you can cash in on this property you have to wait for 5 years. It is called long term investment.

If you are looking for a short-term period for the return of your investment plus a large profit on tax delinquent properties, you need to be very resourceful. Records on tax delinquent properties are open to the public. If you can get to the landowners before they actually give up their properties to local authorities for foreclosure then you are in better shape. You can then offer to purchase their land for a fraction of the actual value. By doing so, it seems as though you just hit a gold mine. Usually, these landowners grab whatever money they can get before the actual foreclosure happens. Its better to get something than nothing, as one might say, and for the tax delinquent it’s certainly is the case. This is where the profit comes in really fast for the Tax Delinquent investor. It might sound cliché, but it surely fits the “Buy Low, Sell High” paradigm.

There are ways to make a profit faster in Tax Delinquent Investments but whatever way you look at it there will always be money to be made in this business. So whether it may be for long or short-term investment on tax delinquent properties you are assured of ROI (return of investment) plus a hefty profit.