Tax Deed Loophole
If you want to work in a tax deed state and get bargain tax sale property, go ahead - attend a few auctions!
You'll find that those amazing tax deed deals you hear about on TV or elsewhere just DON'T HAPPEN! At least not more than once per lifetime anyway...
Common sense will tell you that in every county in the country, there are investors with cash, and they're not about to let a $50,000 property get sold at an auction for $286.33.
Sure, they may not pay full price, though I've seen it happen plenty of times (auction fever).
If that property is truly worth $50,000, you can bet it will fetch a minimum of $30,000-$40,000 at the sale. And I don't know about you, but I don't like to sink that kind of cash into something I can't even inspect.
After you get your tax deed, you cannot sell the property with title insurance to someone else. You must perform another costly legal procedure called a quiet title (and you may also have to evict anyone residing in the property). It's just not a good deal. Plus, aside from a few areas, tax deed sales happen infrequently, only once per year or so.
Sorry to be so negative! We actually do lots of profitable deals in tax deed states. We can work states thousands of miles away, without traveling there.
We always have the right to inspect the property (though we'll send our prospective buyers to do it, BEFORE we agree to anything), and there's never any bidding - because it's just us one-on-one with the owner.
By working with the owner of tax deed sale property BEFORE the sale takes place, we can get unwanted properties or properties that the owner has given up on - for as little as $50.
"The Tax Deed Loophole"
-Get a list of properties going to tax deed sale (make sure county hasn't already foreclosed)
-Contact owners of property on the list and get under contract or purchase for pennies (owner may have already 'walked away'!)
-Run some cash buyers over and flip quick! Or pay the taxes and create a free-and-clear rental for yourself.
Get my insider's guide now for more details on how the tax deed sale game is done - by the insiders!