How To Rank the Properties to View

How To Rank the Properties to View

As you do due diligence, here are some ideas on how to rank the properties to view before you bid on any of them.

1.) Check the neighbourhood

Note the area of the property and rank it. Check out the streets, houses that are not maintained, burned out, or boarded up. Also note the yards that have been left unsatisfactory.

2.) Check the structure

When you are finally near the property, check out its structure. Base it on the condition rather that its aesthetics.

3.) Take note of the problems

You might want to investigate the property’s problems such as porches that are sagging, run-down roofs, etc. Write all the problems you see on each of the properties.

4.) Write down all the good or plus things on the properties

Aside from taking notes on the problems, write down all the good details you see on the properties such as sturdy, well-maintained, etc.

5.) Number the properties’ pictures

Remember to take note of the photo number and some details you see in the photos so you can always have a secondary check if in case the numbers will be disarranged. For example, red house, black iron gate, etc.

When you’re home, attach the pictures to your list or paste them to your spreadsheet so it will be a lot easier. Just be sure though to attach the correct picture to all of the properties.

Property Descriptions: Metes and Bounds

Tax Lien and Deed Property Metes and Bounds

A method of boundary surveying that is commonly used is Metes and Bounds. You see, land titles that are to be transferred by deeds usually incorporate metes, meaning assigned by measure, and bounds which are boundary lines or also known as property limits.

Now, these descriptions tend to have a POB or a point of beginning. Examples include a fence post, stake, road intersection, or even natural features such as a tree. The bearing and length of the consecutive lines from the POB are then given. The values which were formerly represented in poles, roads, and chains are then changed into decimals, fee, and sometimes, metric units.

Precedence will then be set to have a written description and to get its physical appearance and location. This will define an order during establishing a previous survey using the metes and bounds description.  The following shows the order in which the direction, distance, or words will be weighted when a survey is being conducted:

-monuments or marks

-calls for boundaries of the adjoining tracts

-distances and courses that are shown in the former notes

Remember, if the numbers are being spelled out and are also shown in figures, words usually take priority unless there is another proof available.

Tax Lien Sales Tips If You Want to Get Land

Tax Lien Sales Tips

Get the best results if you want to get land by following the tips below:

1.)    Purchase vacant land

2.)    Purchase industrial land

3.)    Purchase commercial land which are of single purpose

4.)    Purchase properties which are clear and free, meaning no liens or mortgages

5.)    Purchase properties where tax bills go out of town or state

6.)    Purchase properties where houses are for rental since tax bills don’t go to houses

7.)    Purchase properties that are located in areas which are low income

8.)    Purchase properties which are boarded up

9.)    Purchase properties that have structural problems and which are visible

10.) Purchase properties that are vacant

Remember though that when it comes to properties in tax liens, you will never always know which would get redeemed and which won’t.  So all you have to do best is learn, proper due diligence, and bid on properties which you think are best.  Good Luck!

Tax Lien’s Major Disadvantage

Tax Lien Sales Disadvantage

Purchasing tax liens include a major disadvantage – the lack of liquidity. Now, this means that it will not be so simple to sell the investment and quickly turn it into money. It will be quite hard than bonds and stocks.

With tax liens, you have your interest in the lien assigned to another individual. This would be a document that has to be recorded by the taxing jurisdiction. With this, you will have to find someone who will want the tax lien certificate you just bought.

One great suggestion during the tax lien auction would get all the contact details of those who have also bid on the tax liens you bought so you can go to them if ever you need to liquidate your portfolio. You can also opt to go to some institutional firms that would want to buy liens. Also, you can also prepare for a proper due diligence package fit for your buyers.

When attempting to have your liens sold, expect them to be sold at discounts. Take note that this would not mean that you are losing, it will always depend on how long you have the liens but most likely, you are going to be selling them in a discounted price. Why, you ask. Well, for the reason being that the buyer will have to get a substantial expense in having due diligence verified and they will need to have that expense back which is discounted. Also, they will have a criteria that is more stringent as to what they are going to buy and they may get the feeling that your portfolio can be a lot of risk than they are acceptable the return whatever your portfolio yields.

Visiting the Property

Visiting Tax Sales Property

It is considered to be extremely important to visit the property before bidding on it. If you can’t do it physically, you can still do it through the internet via maps. You certainly don’t want to surprise yourself expecting something wonderful yet

turns out to be just the opposite. On the other hand, what seems like an old rundown house could actually have an amazing view, all you have to do is renovate. Doing proper due diligence is definitely one you must give your time and effort to especially if you plan on purchasing the tax deed.

Organize your drivebys so it would save you money and time and you will still be able to record important details about your prospect properties. You can very well search the internet of many mapping programs that will simply provide you routes so you will not waste time getting lost.

Once you drive by the property, you can take a picture of it discreetly to keep in your files. Rate the house and neighbourhood and take note of the repairs or problems you might encounter.

You might also want to take note of the following:

• Roof and paint conditions
• Broken doors, windows, cement
• Underground areas
• General landscape
• Adjacent properties conditions
• Accessibility
• Soil, vegetation
• Street traffic
• Vacant house? House for sale?

You can also drive around the place and look for a business or industry that might make the property undesirable. Search for properties in the neighbourhood that could be similar those are for sale, call the real estate agent or owner, ask for the price and condition, and compare it to your selected property.

Remember, create your own checklist and once you have done proper due diligence on your properties, you are ready to narrow your property list and get ready to bid on to the ones you feel are right.

Tax Deed Investing Strategies

Investment Strategy

Strategy #1: Your Objectives

As you start to invest in tax deeds, decide what your main financial objectives are as these will affect your criteria: type of properties you are to buy, methods you are going to use, and the effort and time you are going to invest in.

Are you going to purchase tax deeds to own properties or sell and get profit? If you want to purchase properties to own them, you may require a lot more capital. However, if you want to sell properties and gain profit, this will need more time and effort to renovate and turn them.

Strategy #2: Choosing an Area

In order to do this effectively, you have to be familiar with your selected local real estate values, developmental trends, growth potential, take note of areas which are not desirable, and the city plans. You also have to consider if it is best to choose the state you live in or the state where you live. Remember, you simply cannot become an expert in all of the states as there are laws and processes that are different.

Strategy #3: Choosing the Property Type

Next, you have to consider the type of properties you plan on buying at the tax deed sale. You might want to purchase on industrial properties, raw land, commercial properties, multi-family residences, agricultural land, developed areas, single family residences, and many more. Always do proper due diligence before deciding on any of the property types so there will be no risks.