What’s Wrong with Tax Deed Investing?
You may have heard that tax deed investing is a great way to purchase properties for back taxes. But here are the reasons why it doesn’t always work out that way. First of all these tax sales are competitive and though the bidding for tax sale properties may start at the back taxes owed, any property with a house on it is bid up at the sale, sometimes close to market value. Then what makes it even more difficult for the average person to buy a home at a tax sale is that in most counties is, you need to have the full bid amount, in certified funds on the day of the tax sale or the day after the tax sale. That means that you have to have all of your cash on the day of the sale. You do not have time to get financing. So what is a person in one of these competitive deed states to do? How can you buy tax sale properties for pennies on dollar in one of these states?
There are ways that you can purchase tax sale properties for pennies on the dollar, but not buy going to the tax sale. You can avoid the competition at the tax sale in tax deed states by contacting the owners of these properties before they are sold in the tax sale. You can do this by finding vacant properties that are on the tax sale list that have out of state owners and by contacting the owners of these properties. What you are looking for are property owners who have already decided, for whatever reason that they no longer want the property, and were prepared to let it go at the tax sale. Then you can offer them a small consideration for deeding the property to you before the tax sale. In this way you can pick up vacant properties for less than what they would sell for at the tax sale.
But why would someone just handover a quitclaim deed to their property to you? There are many reasons why someone would do this. There are many reasons why a person would do this. Here are just a few: Divorce or other life changes, loss of a job, or relocation to another area of the country. It is important to check for other liens on the property before you do this because since you are purchasing the property directly from the owner, you would be responsible for any liens, judgments, or mortgages they may be on the property. So check that out first.
Did you know that there is a little known secret about tax deeds that you can do in some states that will let you cash in on tax deed properties without going to the tax sale? You can find out all about it in my free Tax Foreclosure Fortunes mini-course. Get your copy at http://www.TaxForeclosureFortunes.com. Visit Joanne Musa’s web site at http://www.taxlienlady.com.
Article Source:http://www.articlesbase.com/investing-articles/whats-wrong-with-tax-deed-investing-862478.html
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Tags: financing, foreclosure, Investing, investing in tax deeds, mortgage, quitclaim deed, Tax Deed Investing, tax deed states, tax deeds, tax sale properties
