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Tax Deed Overbids and Tax Lien Overages Generates Income
You have certainly come across tax deed overbids and tax lien overages if you have experience on tax foreclosures. Both of them are essentially similar to one another when there are excess bids on a property at the tax sale. These two are good sources of income for investors who know the capabilities of making money from it.
Tax lien overages and tax bid overbids leave behind owners who do not know that they have thousands of unclaimed dollars. These homeowners wrongly assume that they have lost everything from the tax foreclosure. They won’t even bother to investigate if there are any funds owed to them. The money is just waiting for them to come in and claim it. However, unclaimed funds would be turned over to the state.
If you want to add more income to your investing plans, then search for those properties with overbids and get a finder’s fee. And at the same time you help the homeowners get the money they truly deserve from the selling of tax lien certificates and tax deeds.
Redeemable Deed as a Good Investment
We know the fact that each county needs to collect delinquent taxes to pay for the projects made for the improvement of the state. That is the reason why auction is made to cover up the delinquent taxes that homeowners failed to pay on time. And this is where investors come into the picture to pay those delinquent taxes.
Redeemable tax deed is one of the delinquent tax collection methods of every state. As we know when investors purchase or buy a redeemable deed, he is already considered as the legal owner of the property. What makes the redeemable deed attractive to any investors is the hefty penalty, not the interest. Many investors find the flat penalty as a better one because for them it is considered as an instant profit compared to interest computation. This means that whether the property owner redeem its property immediately, or just a few weeks or months after the auction, the investor can still get the full amount of penalty. Penalty is not computed annually like the interest. In this case the investors can get assurance that they will be getting something big anytime, if the property owner chooses to redeem the property back.
In an instance if the property owner failed to redeem back the property within the redemption period, the investor already have the right to foreclose the property to start the process and fully acquire the property in just a fraction of the market value.
Texas as a Popular Tax Deed State
It can’t be avoided that investors will also choose a good state for them to invest in. Of course one of the main factors they consider is the amount of interest they will be getting upon investing. One of the states that mostly investors choose is Texas. Why do you think so? Texas had been known as the most lucrative tax deed state because of its great deal of profit. For many investors, this is a very rewarding state.
Interest rate in Texas runs at 25-50% which is said to be the highest rate of return compare to any other state. Another good thing about this state is that the redemption amount is calculated based upon the amount the investor paid during the auction. So, if the investor was able to get the property in such a double opening bid amount, the investor should also expect a high return of investment on the property. What made Texas to be different in some other state is that in others if the property was redeemed by the property owner, immediately or just months after the auction, they will just give you a small percent of interest. In this state, no matter what the situation is, whether the property owner was able to redeem the property just months after the auction, the investor can still get a sure interest rate of 25% to whatever amount he paid at the auction.
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