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. 

Success Strategies for Effective Tax Lien Investment

Anyone with a little money and a basic understanding of tax lien investing can buy tax lien properties. The question then becomes, what do you with them do once you own them? It all begins with a certificate about the size of a regular piece of paper. Where it goes from there is up to you.

Knowing what you want and setting goals around those objectives is vital to your success as a tax lien investor. Without a game plan, you’re just gambling.

Set Your Intention

Why are you interested in tax lien certificate investing? Have you made other types of investments and want to try something new? You’re wise to consider this. For over 200 years, investors have gotten rich applying specific real estate strategies and buying tax liens and deeds. They begin by setting clear intentions for what they plan to accomplish. That’s the first goal of every successful investor.

A clear intention will help you set goals and keep you focused at tax foreclosure auctions and online tax lien sales. When you know what you want and how to get there, you’ll resist temptation to jump on that “great deal” that pops up as you’re waiting for your property to come up for bid.

Know Your Budget

Knowing what you have to invest in a given year or even at a specific tax certificate sale will help you decide which properties warrant a bid. Without a budget, you might be tempted to purchase tax lien certificates that aren’t in alignment with your primary goals. Doing so might find you sitting on the courthouse steps with an empty wallet and broken heart as the property of your dreams goes to another investor.

Design Your Long Range Goals

What would you like as your outcome, investing in government tax lien certificates? Are you looking for cash flow? In this case you might be best served buying tax deeds.

Is your goal to earn mammoth returns on tax liens once they’re redeemed? If so, earning 16%, 24% or more might be the way to go. Especially if you have a nice little nest egg to fund your visits to property tax lien sales; you could invest and make money while you sleep. Do you have a desire to travel? Live the laptop lifestyle of many executives and run your investment business from anywhere in the world by purchasing
tax liens from online tax lien auctions. Many investors with wanderlust come away from online transactions with healthy sums of money while they dine on a cruise ship or fish off the Florida coast. Technology is wonderful!

Know what you want and where you see yourself in the future and your tax lien investment business will carry you forward to the life of your dreams. Stay focused and disciplined and you’re half way there.

Check out my [tax lien training videos- http://www.tedthomas.com/ (Just scroll down when you get to the page.)] – free of charge on my website. You’ll be amazed at how people just like you have prospered buying tax liens.

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Ted Thomas is America’s Tax Lien Certificates and Tax Deed Authority. He’s taught thousands of novices and professionals real estate investing strategies that help them profit by Tax Lien Certificates and Tax Deeds at government sponsored auctions. This is the safest, most lucrative investment opportunity in America today and you can learn how to benefit from investing by visiting http://truthabouttaxliencertificates.com/