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Real Estate Investing Information

Apr 08

What Is a Real Estate Tax Sale

What Is a Real Estate Tax Sale. Real estate is taxed in most areas with a property tax. The money raised from property tax can go to the municipalities, schools, hospitals, etc. When property owners fail to pay their taxes the organizations still need the money to meet their budget to do this they seek the help of investors.

The counties will create either a tax lien or tax deed for the investor. I will go into more detail on the differences in another post, but I will briefly cover them now.

A tax lien or tax certificate is formed and sold to an investor for the amount of taxes owed. The investor then will receive the principle back plus interest.

A tax deed is created and sold to the investor which means the investor receives the deed to the property with the voluntary liens, like a mortgage, removed in most cases.

The properties often sell for the amount of taxes owed plus other fees. This can result in a home for pennies on the dollar. You have probably thought about buying a home appraised at over $100,000 for only a few thousand. With tax sales it can happen.

Not every property for sale in a tax auction is going to be a gem. I have come across many properties that are in a swamp or out in the desert without roads or utilities.

Proper research is vital to making money and not losing money in tax sales. There will be some great finds that can make you a lot of money, but there will also be some properties that are worthless. I will cover research another time, but now you know what a real estate tax sale is all about.

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Technorati Tags: Property tax, real estate tax sale, tax deed, Tax lien

Dec 15

Investing In Tax Sales

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Image via Wikipedia

Tax sales are another niche that seem to stay under the radar from most investors. It is a way to get real estate for much less than the value or, get paid without every owning real estate. These articles explain some of the techniques.

What To Avoid With Tax Liens

What to avoid with tax liens. Tax liens are created when a property owner fails to pay their property taxes. The county places a lien on the property for taxes owed plus fees and interest. The county will often auction the liens off to investors in order to get the back taxes paid quickly.

You may already know how profitable tax liens can be to a investor, but they can also be a nightmare if you are not careful with your due diligence. Here are just a few things to check before purchasing a tax lien.

Is the lien coming from the county or state or is it coming from a third-party. If you are purchasing the tax lien directly from the county then you can be assured that it is a legal lien. Counties do not do the research for you. You will still need to find out what other liens on are the title before purchasing the liens. –more

How To Find Out About Tax Sales

How do I find out the tax revenues that are coming into your country? There are three ways I know to find the sales tax free or nearly free.You possible in the newspaper, go to the tax collector, or go to a site that sells lists of sales tax.

The first way to discover the tax revenue is coming up in your area to view the legal notices in local newspapers. Most of the districts a notice of tax sale on the spot, and the list of properties thatoffered for sale in a local newspaper halfway between two and four weeks before the sale. This method is not entirely free, because you buy the paper. You must also know when to hold the sale so that you know when you start looking for him.

A better way to find out when and where the sales tax is required, the tax collector, or is responsible for sales in your country is to call and ask. Most of the time, this is the county treasurer or tax collector, but sometimes taxThe sales are made) from the sheriff’s office (particularly in certain countries, in fact. –more