Buy Low, Sell Low Be Successful Selling Tax Deed Properties

Over 95% of property owners redeem their tax liencertificates before they lose the deeds. This is good news. It means you, as the investor, get paid between 16% and 36% interest. What about the other 5% of the tax liens? Well, that’s even better news.

If property taxes are not paid during the redemption period, you get the deed to the house. Let’s hope you were thinking things through before you bid at the tax auction. If you didn’t plan for what you would do if you got the property, you might be facing a dilemma.

What will you do? Sell it? Keep it?

If you decide to keep the property, you could rent it out and use the monthly income to increase your personal cash flow. If instead you’d rather not have to deal with the responsibility of owning and you’d prefer to sell, there are a couple of things you need to keep in mind.

First, what kind of cleanup and superficial repairs can you do to improve the value of the property? You’d be surprised at the difference mowing the lawn and pulling weeds can make. While you’re at it, pick up loose trash and sweep the driveway. All of these improvements might cost you a couple hundred dollars, but it’ll be worth it.

Chances are you, as most successful tax lien and tax deed investors, want to free your cash for future investment. If you want to move the property quickly, remember this: don’t be greedy. You bought low, right? Sell low!

If you were awarded the deed just for paying taxes owed, you probably got a really good deal; ten—or at most twenty—cents on the dollar. Let’s say you got the deed to a house valued at $100,000 for $15,000. Even if you sold it for $45,000 you’d have tripled your investment at 300%. Price the property to sell quickly and your money will be freed. You’ll be onto the next deal before you know it.

Please visit my website and watch the free videos. Take a few more minutes and listen to the testimonials from some of my students. You’ll hear what they did and how they applied the real estate investing strategies I taught them in my tax lien training. 

Buying Real Estate Tax Liens and Deeds From Surplus Tax Lien Lists

Also referred to as “over the counter” purchases, property and tax lien certificates that don’t get sold at tax auctions are made available to investors on surplus tax lien lists. Purchasing these liens can be a strategic move for investors.

Although it can be a little easier to purchase from a surplus list than compete at auction, it would be wise to be wary. Purchasing taxliens and deeds from surplus lists doesn’t mean you can skip steps. There might be a reason these properties weren’t sold at auction. Even more diligence is often required.

Investments should never be taken lightly. Doing so is not investing, it’s gambling. The thrill of the sporadic win in a casino, unless you’re addicted, is no match for gambling with investment capital. You can walk away with a few dings but most people recover.

A bad investment can take you out of the game.

Begin by getting a hold of the Tax Deed Surplus Land List in your county and/or Tax Lien Certificate Surplus List in your county. Not every property on the list will match your plan. Skip those that don’t and resist the urge to bid on them. Focus only on the certificates or deeds to properties that are a good match.

Next, get the rules to the surplus land auction in your county. Remember that every county is different and don’t assume that the rules for auctions in other counties in your state are the same or even similar. Get the rules and familiarize yourself with them.

Is the auction process first come, first served? Will you automatically get the maximum interest rate on leftover tax liens? Knowing these answers will reduce your risk.

If you’re purchasing the deed to a property from the surplus tax lien list, research the type of deed you’ll receive to determine it meets your personal guidelines for investing. If it doesn’t, be willing to walk away. Remember a good deal is only a good deal when it meets your own qualifications for success.

Buying over the counter tax liens and tax deeds can put money in your pocket if you follow through: plan, research, and qualify. These three things will minimize risk and help you reach your financial goals. 

Please watch my free video series to learn more about tax lien certificates and tax deeds investing. Other than the investment you make in yourself, it’s the safest and most profitable investment you’ll ever make.  

Top Real Estate Investing Strategies: Selling Vacant Tax Deed Land

You don’t need to buy tax lien homes in order to invest and make money in real estate. You can also buy tax deeds to vacant land and either keep for your own use or sell for a profit.

When a property owner defaults on their taxes, the government imposes a lien against the property. The lien is held for a certain amount of time and then the certificate is offered to investors at live or online tax lien auctions.

Property owners are given an opportunity to redeem their certificates at interest rates of up to 50%, depending on the state. Tax Deed states cut out part of the process and go straight to the deed sale. Since tax liens on vacant land are less likely to be redeemed, your chances of owning a parcel of land are more probable.

Unless you have a plan for the vacant land, it’s best to consider selling as soon as possible. To whom, you might wonder?

Low Hanging Fruit

Neighboring land owners are the most feasible buyers. They stand to increase their acreage with the purchase of adjacent parcels of land. Contact them first with a time-sensitive opportunity and first right of refusal. The easiest transaction you can make is with a willing buyer with a vested interest.

They might come up with cash or in some cases a rent-to-own situation might be in order. This gives a little more mileage to your investment. Carry the loan if it means you can sell the property. If the purchaser defaults, you’ve lost nothing. You still own the property.

Grooming

Sometimes vacant land has been neglected by a property owner. If you’re able to see beyond maintenance issues and negligence of the property and recognize that with a little TLC the vacant land would be highly marketable—buy it! A trained mind will help, so be sure you evaluate with the appropriate criteria.

Cut the grass and pull the weeds. Landscape if you think you’ll get a better price. Just make sure you don’t spend more than you’ll get in return. The goal is NOT just to break even. Cosmetic enhancements are best reserved for properties you know will net you much more with a little extra fluff.

If the vacant landyou’ve acquired has been severely neglected, or used as a land fill, factor in the expense of trash and debris removal. This singe upgrade, which might cost you a few hundred dollars, could raise the value of your new property by several thousands of dollars. Measure the value of any improvement you make before you write the check. 

If you’ve learned anything from my tax lien training,your vacant land investment came at a good price. Sell it at a fair price and both you and the buyer will benefit.

Would you like to learn more about tax lien investing and buying tax deeds to vacant land? Watch my freevideo series. And here’s something that explains this profitable and safe opportunity: http://truthabouttaxliencertificates.com/. Sit back, enjoy it, and welcome to the lifestyle change you’ve been hoping for.