Tax Deed Overages - If You Don't Know the Term, You're Making $100,000 Less Than You Could Be

"Tax deed overages." Chances are you've neveryou connect the owners with their funds, you can
heard of that phrase in your life, even if you are a reallegally charge whatever you want as a finder's fee.
estate investor. Most investors, even tax saleSince these owners are almost always completely
investors, never stumble across tax deed overages.clueless about where they could have a windfall
But the ones that do are quietly cleaning up with themcoming from (for a variety of totally understandable
- making $100,000 or much more, depending on thereasons), they're also generally happy to agree to a
person.50% finder's fee.
Tax deed overages are the funds that are left overThat means on a property overage of $20,000, you'll
when a bidder bids more than the amount of taxesmake $10,000. You could easily make that $10,000 for
owed on a property at tax sale. These funds rangeless than a day's worth of work, when all is said and
anywhere from a few hundred to a few hundreddone.
thousand dollars. They are generally held for the taxTo top it all off, you're probably aware of the
delinquent owner to collect for a period of time, afterskyrocketing foreclosure rate. This ensures that tax
which the government can seize the money. Thesedeed overages (as well as mortgage foreclosure
funds all have one thing in common: their owners seemoverages) will continue to be created, and lost to the
to be clueless about their existence. So they sit, andgovernment if someone doesn't step in as "finder."
they escheat to the government by the millions.There's never been a better time to get involved, and
If that's not enough to excite you, how about this? Dueyou could feasibly add $100,000 to your income in
to a legal loophole, tax deed overages are (generally)whatever time you have available to dedicate to the
not governed by finder's fee limits. This means that ifbusiness.