Latest Blog Post
Invest in Pending Tax Deed Sale Properties
A lot of investors would want to purchase tax deeds because properties included in the sale have equity in it. Even though it has to be repaired or demolished. The homeowner lost this equity because of the sale but there is still hope for him to get something rather than nothing. This is where you can make huge profits by contacting the homeowner, and buying the property before the sale ends.
The huge benefit that you get in a tax deed sale with an open bidding format is that there is less competition with other investors. You can analyze the property in order to bid on the deed, or make a direct offer to the homeowner. With this strategy, you can save distressed properties before they are lost to a sale.
Since only few investors realize this great technique, the field is wide open, and using the right options, owner financing, and other ways, you can turn around these purchases into amazing good deals. Do this instead of producing the full amount of the tax lien certificates owed by the homeowner.
Tax Deed States Researching Skills and Online Sale
Researching on tax deed is not simple for beginner investors especially when one doesn’t know where to start. A lot of people in the real estate industry are becoming aware of the advantages of investing in tax deeds. However, only few understand how to start or what skills are needed in this lucrative business.
Lots of tax deed states that conduct the sales require the counties to keep accurate records and make them available to the public. Counties often make websites that hold important information so that the public can easily see which tax deed properties are for sale. This is where online sale comes in.
Every tax deed investor who wants to discover amazing deals, tend to slow down in their efforts when it comes to locating the correct websites. This must not be taken for granted since the pertinent and essential information is sometimes hidden among the pages, and just waits for the investor to dig in. Unless one is an experienced tax deed investor already, then navigating the county websites is an easy skill to have.
Getting to Know Tax Lien
What is a tax lien? If you are new to this type of property investment, then let’s get your started by reading the following information below.
A lien is filed on a delinquent property by the government for non-payment of property taxes by the homeowner. The local government or county sell the lien of the property at a public auction. You become the owner of the lien if you choose to bid for it and win. If the homeowner chooses not to redeem his property intentionally or unintentionally for personal reasons, you get your return of investment. This way, you receive interest on the unpaid tax plus any penalties put up on the property. You would definitely gain a good profit out of this lucrative investment.
Buying Tax Liens or Tax Deeds with Help from Real Estate Agent
One of the great resources to find out about the background of a property that has a lien or deed against it, is by hiring a local real estate agent. Once you obtain the address of the target property, which can be found using the tax ID number on the list of tax sale properties, a real estate agent can provide you good assistance on this matter. He can search its location as well as how it’s doing in the market.
Once the real estate agent gives you the information on a property’s market value, then you would be able make the best decision on buying tax liens or tax deeds. This would help you decide whether or not to invest in that particular property. Furthermore, if it’s possible, know everything you can about the property, check whether or not it would be easy to flip later on, a good rental, or a potential home to live in.
Tax Deed Investing Due Diligence is Key
Before you attempt to attend and bid at a tax deed sale, it is important to do your own research diligently. It is also called due diligence. You must be proficient at it or find yourself caught up in a not so good deal.
Good research and due diligence would help a lot since it would find out if there are any other liens attached to the property. These liens might be government liens or IRS liens. This is the fault of delinquent homeowners who failed to pay their property taxes. These are the only types of liens that are usually not wiped out at a tax deed sale.
You must also remember to carefully crosscheck property details from different sources such as the property appraiser’s office, and tax collector’s office. You can do this online to save time as there are many available references in the internet. As you see, learning how to do effective due diligence would save you a lot of money and time. This is the key to become a successful tax deed investor.
Tax Deed or Tax Lien Both Generate Profits
Tax deed is a unique kind of foreclosure on delinquent properties performed by the taxing authorities and local government. For most people, foreclosure generally means a house, condo, or an apartment being sold by the banking institution for failure of the owners to pay their mortgage.
However, there is another type of foreclosure that happens when homeowners fail to pay property taxes. It is called tax lien sale. When this happens, the county places a lien on the delinquent property and sells it to the highest bidder at a tax sale.
A tax lien does not give the holder rights of ownership to the property yet. Redemption period on states that conduct tax lien sales can last as long as two years before a deed would be issued. It is standard procedure that deeds would only be issued after a public auction.
Tax deed or tax lien, an investor can benefit from both. Good profits also await those who wish to spend time doing research on tax delinquent properties. Just waiting for the right owners to come and bid on them.
Tax Deed State Arkansas Information
In the state of Arkansas, all of its counties hold on to properties of tax delinquent homeowners for a whole year. Then, they deliver these properties to the Commission of State lands after duly notifying the respective owners. The title to the tax delinquent properties will vest in the state of Arkansas under the care of the Commission of State Lands. The said office would become responsible in organizing and conducting tax deed sales to the public. The sale shall be done throughout Arkansas. Tax sales basically take place all year round in different counties across Arkansas.
The county tax collector is in charge of collecting delinquent taxes from property owners. The tax collector would submit relevant information on each tax delinquent property, after properly notifying the homeowners. This valuable information would be published between thirty to forty days prior to the turnover of the delinquent property to the Commission of State Lands.
Click Here To Get Your Free Tax Lien Training System ($77 Value)
- Exactly How To Start Buying Tax Liens Today
- Tips For Tax Lien Auction Success
- How To Avoid The Mistakes New Tax Lien Investors Make
Search
Categories
Archives
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011