Today I wanted to talk to you a bit of minimizing the risk of investing, and do this by research.
Tax Deeds are a great investment if you’re really expecting high return of investments in little to no time time.
These sales are open to the general public. And with a Tax Deed, in most states you bid on the property, and if you win, the deed is transferred to you with only minor paperwork, and you are free to turn around and do with it what you please!
Tax deeds are usually sold out in small percentage of its market value so the investors can end up owning it for just a fraction of a price of the market value.
It can be a fairly quick turn around time from winning the bid, and selling it to a likely investor/real estate agent at far below market value.
(Or if your into it, you can buy rehabbing properties and fix em up after you win the auction and sell them for an even greater profit!)
Heres the important part:
You must do a research about the properties so you can see for yourself how much the property is worth, what you could potentially get for it, and if it has any hidden fees associated with it.
Also, the value of the house so you can estimate until how far you’re willing to go to get that property.
This is important because some of the houses you will find at the auction aren’t in the best condition, wherein it might need some repairs, and will need some fixing before selling it someday…should you end up owning it.
It would also help to call the county to know some of the details and information about the property.
Similar to Tax Liens, the rules and regulation differ on each county as well. That’s why it’s best to do your research so you don’t end up bidding on the wrong property, or one that you won’t be able to sell/fix and profit from.
By doing research you minimize the risks that you’re going to take in acquiring a property. If we master the basics of everything, this investment can lead us to a stronger financial security.
And in the end, thats the goal of this, even if its takes a bit more research
I’d suggest using sites like zillow.com and trulia.com for finding out market value and property value. They can save you lots of time!
I’d love to hear your thoughts, so comment below with wisdom you took out of this, and share this if you think someone could benefit from it! Thanks for reading!
