Tax Deeds and Tax Liens

Today’s blog post will conclude a specials series that talked about my different educational programs and what each one was designed for. Today I want to talk for a few minutes about my tax delinquent real estate programs:

On my blog, you have heard me talk quite a bit about tax delinquent property. In fact, it was only after learning about how counties collect delinquent property taxes that I really got excited about real estate investing. I couldn’t believe that some people would let their properties go for nonpayment of taxes, and neither could I believe the investment opportunities that tax sales presented.

These programs go beyond the “bid at an auction” advice that most people have already heard; they teach you alternative ways to make money using the tax sale statutes in each state’s constitution. The methods include:

Making money with tax liens. Outside of the standard model, how can you make money with tax liens? Consider buying a lien on a property which doesn’t have a mortgage on it. And don’t be scared off by a property in need of some TLC. You don’t want a property with a mortgage because often the bank will swoop in a redeem the parcel, and for our purposes we don’t want that to happen.

In states that sell tax liens, once the redemption period expires (the time for the owner of record to pay off their delinquent property taxes) the holder of the lien has the right to foreclose on the property. That means that for paying just a few years’ worth of property taxes you can be the owner of the entire parcel with all existing liens wiped out (except those issued by the government). Then you can either fix up the property and rent it out or flip it for a huge profit.

Making money with tax deeds. While you might find a good deal from time to time buying tax deeds in a metropolitan area, I have found that you can make more by thinking outside the box. For example, focus on rural areas with lower competition and more reasonable prices.

Investing in tax delinquent real estate is just the best. There are so many opportunities!

Comments: 2

  1. Posted by Steven Baker 01 Dec 2014 at 1:22 am

    I would like to find the list of people/property in delinquent status. Do I go to city hall? Court house? Can I find it online?

    Thank you for your help.


    • Posted by Moderator 01 Dec 2014 at 10:46 am

      Hi Steven – you will want to get in touch with the county assessor’s office. You might have to speak to several people to get what you want, but the idea will be to ask who mails out tax deliqneunt notices, and eventually get that person to send you the most recent list.


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