I remember in my early days when I just started investing in Tax Delinquent Properties I was quite confused as to what all these different county departments actually do and how I need to use their services.
For the purpose of Investing in Land and Tax Delinquent Properties you usually don’t work with more than 3-5 different departments which usually are:
Author: Luis Garate
Tax Lien and Tax Deed investments are a extremely safe form of obtaining huge returns on your money. Sometimes these returns are as high as 16 to 36% in the Tax lien area and can exceed this Massively if the investor forecloses on the property or gets a good deal in a Tax Deed auction.
Counties and Municipalities need money to pay for their infrastructure, schools… and therefore they need to collect the Property taxes. If someone is not willing to pay these taxes, the State takes some measures to ensure they get paid. One of these measures is to sell the property taxes to investors in exchange for them receiving a high interest rate and the right to eventually foreclose on that lien. . The other one is to after a statutory waiting period (2-5 years) sell the property itself at auction.
The first thing most of my students want to do after they successfully purchased a property is to go and pay-off those pending back taxes and Tax Liens Certificates (also called TLCs) issued against the property.
Unless you have lots of money to spend, DON'T DO THAT!!!!!!
Learn more about this by reading my detailed eGuide: http://www.landforpennies.com/secretsrevealed/
Basically though, you should use your cash for something else, like buying more property.
In my last email I explained to you one of my many strategies and techniques for selling a property. In this email I will explain how to get maximum profit using the eBay selling strategy. For more information about this selling strategy and explanation of more great and profitable selling strategies please go to http://www.landforpennies.com/secretsrevealed/
A great way to earn maximum profit for your property is to employ seller financing through eBay by having people bid on the down payment and having a set price for the property. For example, you offer a property on eBay for $7900 with a built-in loan. The high bidder pays as $400 down payment and you finance $7500.
To get the full details of how to structure this type of sale please read my detailed eGuide at http://www.landforpennies.com/secretsrevealed/
What are “redeemable Tax Deeds” like used in Texas Tax Deed auctions
In most states offering Tax Deeds the redemption period ends usually the day prior to the actual Tax Deed Sale. However there are a few noted exceptions like for example the state of Texas, which offers “Redemption Tax Deeds” or also called “Redeemable Tax Deeds”
Texas is a Tax Deed state, meaning that it does not offer tax liens. Instead after only 2 years of a property being Tax Delinquent each county such a tax delinquent property is located in has the right to put up a Tax Deed Auction and sell the actual property.
You might be asking WHY IN THE WORLD DOES ANYONE NOT WANT a property anymore or, if they don’t want that property anymore, what is WRONG with that property?
Usually nothing: The VAST majority of all properties you can buy at Tax Deed Sales, through Tax Liens Sales and using our Direct Purchase Technique are FINE properties, many times with utilities, maintained road access, city water, trees on them, and lots of value to them.
Now you might be asking WHY IN THE WORLD DOES ANYONE NOT WANT a property anymore or, if they don’t want that property anymore, what is WRONG with that property?
USUALLY NOTHING!!!
The VAST majority of all properties you can buy using this technique are FINE properties, many times with utilities, maintained road access, city water, trees on them, and lots of value to them. There are a few in between properties which are not so good but if you follow the steps I lay out in my eGuide available at http://www.landforpennies.com/SecretsRevealed.php you will learn how to safely avoid them.
So why is it, that many owners don’t want their properties anymore?
In the past few years I have done over 3,202 land investment deals. I want to take a few minutes to answer one question that most people have when first hearing about land investing and that is “What are the risks involved?” This is a valid question and is something that I thought long and hard about before I began building my wealth through land investing.
One of the major potential risks that I hear about frequently from real estate investor “newbie’s” is “What do I do if I get myself locked into a bad deal?” Well for sure there are times when you may realize that after being half-way into a deal, it turns out to be not as good as you expected, or you come across some unforeseen circumstance that has swayed the deal in the wrong direction and you have to back out to avoid loss of profit.
Certainly in my years of experience I have come across a few of those.
When someone decides to stop making their property tax payments and let their property go for taxes, there are many reasons for this.
But below these superficial reasons is a feeling of the owner that he/she just does not want to deal with this property anymore.
Reality does really not play a big role in the minds of these owners. In their minds they just wrote this property off and do not want to deal with it anymore.
They fully know that they could sell the property fast if they would only sell it at a discount and advertise it a little bit, but even that is too much effort for them. And it doesn’t even matter if they could recover thousands and even tens of thousands of dollars from such a sale. Once their mind is made up that they don’t want the property anymore they rarely sway from their position.
If you have even a passing interest in real estate, you've undoubtedly heard one or more of the so-called "experts" advising against buying undeveloped land. Why? Because it generates no income? Well, the fact is that they're not telling you the whole story about raw land. There happens to be another school of thought entirely. And once you take notice and begin to analyze things clearly, you'll start to see that buying land can actually be a tremendous investment.