| You may have heard that tax deed investing is a | | | | can do this by finding vacant properties that are on the |
| great way to purchase properties for back taxes. But | | | | sale list that have out of state owners and by |
| here are the reasons why it doesn't always work out | | | | contacting the owners of these properties. What you |
| that way. First of all these tax sales are competitive | | | | are looking for are property owners who have already |
| and though the bidding for tax sale properties may | | | | decided, for whatever reason that they no longer |
| start at the back taxes owed, any property with a | | | | want the property, and were prepared to let it go at |
| house on it is bid up at the sale, sometimes close to | | | | the sale. Then you can offer them a small |
| market value. Then what makes it even more difficult | | | | consideration for deeding the property to you before |
| for the average person to buy a home at a sale is | | | | the tax sale. In this way you can pick up vacant |
| that in most counties is, you need to have the full bid | | | | properties for less than what they would sell for at the |
| amount, in certified funds on the day of the tax sale or | | | | public sale. |
| the day after the tax sale. That means that you have | | | | But why would someone just handover a quitclaim |
| to have all of your cash on the day of the sale. You | | | | deed to their property to you? There are many |
| do not have time to get financing. So what is a person | | | | reasons why someone would do this. There are many |
| in one of these competitive deed states to do? How | | | | reasons why a person would do this. Here are just a |
| can you buy properties for pennies on dollar in one of | | | | few: Divorce or other life changes, loss of a job, or |
| these states? | | | | relocation to another area of the country. It is important |
| There are ways that you can purchase tax sale | | | | to check for other liens on the property before you do |
| properties for pennies on the dollar, but not buy going | | | | this because since you are purchasing the property |
| to the sale. You can avoid the competition at the sale | | | | directly from the owner, you would be responsible for |
| in tax deed states by contacting the owners of these | | | | any liens, judgments, or mortgages they may be on |
| properties before they are sold in the tax sale. You | | | | the property. So check that out first. |