| There are many differing ways to turn a profit by | | | | respond. Once you have the deed you are the new |
| investing in the USA property tax system, and four | | | | owner. Your don't have to bid for it, and you got it for |
| immediately come to mind. | | | | taxes and fees owed. Or, you can let it go to auction |
| | | | and receive 100% of the overbid monies in 30 to 60 |
| 1. Tax lien sales. | | | | days. |
| 2. Tax deed sales. | | | | Overages. |
| 3. Front running tax deed sales. | | | | Overages are what occurs after the tax deed sale. |
| 4. Overages from a tax deed sale. | | | | Overages are also known as excess funds. working |
| As a prospective investor, or as a new investor who | | | | this strategy involves skip tracing skills to find former |
| would like to know more about the industry, the | | | | owners. These leads are usually cold and dead leads, |
| question that remains to be answered is -- "Which is | | | | with about one in 200 responding. If you're lucky |
| the best strategy?" Well, all of them are good. | | | | enough to find the owner and the power of attorney is |
| However, there are advantages and limitations to | | | | given to you, you may get up to 50% of the refund. |
| each. | | | | This is lucrative when it does occur, but it can cost you |
| Tax liens sales. | | | | skip tracing and attorney fees. |
| Tax liens sales are perfect for the institutional and | | | | Out of the four strategies, only two give you the |
| cashed up investor as investing large sums of money | | | | opportunity to own the deed; front running, and the tax |
| are necessary to see a good return. $10,000+ will pay | | | | deed sale itself. Now, let's recap and take another look. |
| you $1800+ in the higher interest rate states. You may | | | | Tax lien investing takes too long to return a profit, and |
| get lucky and even get the deed, however the | | | | gives too little of a return on the investment; unless |
| limitations are that you rarely get the deed, as 97% are | | | | you're investing large sums of money. Overages can |
| sold at a tax deed sale. And, you may have to wait up | | | | also take too long, and can be very frustrating and |
| to two years to get paid! Also, you cannot approach | | | | time consuming to see a return of only 50% of the |
| the owner in any way. This means you cannot work | | | | overbid excess funds; after skip tracing and attorney |
| front running as you are prohibited by law to approach | | | | costs are incurred. |
| the owner. | | | | Front running will get you the deed for taxes and fees |
| Tax deed sale. | | | | owed, with very little cost, and in a short time frame. |
| A straightforward public bid auction. If you have done | | | | The tax deed sale will get you the deed for the |
| your research and due diligence, and are the highest | | | | highest bid, often for only the taxes and fees owed. If |
| bidder, you own the deed! Tax deeds are often picked | | | | your goal is to own the deed, front running and buying |
| up for taxes owed, and for under $1000! Simple, | | | | at a tax deed sale are the best strategies to focus on. |
| straightforward, and easy. | | | | Why? |
| Front running. | | | | Owning the deed is the goal! |
| Front running is also known as "grabbing the deed". | | | | If you own the deed you have collateral, and a |
| There are two ways to profit from this strategy. Work | | | | potential sale at a greater profit at a later date. Once |
| numerous tax deed sales in advance by seeking to | | | | the economy rebounds your newly acquired real |
| contact current deed owners. Send out large numbers | | | | estate assets will also increase in value. The strategies |
| of letters asking owners to quit claim the deed over to | | | | that give you ownership of the deed are best, for |
| you before the auction day. Perhaps one in 100 will | | | | "Owning the deed is the goal! |