October 29th, 2019 11:22 PM by Eric Willner
Radio Show Notes 10/29/19 Tuesday: Buying Real Estate at Big Discounts at Property Tax Auctions – The Real Estate Show Tax Auction Experience
By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.
Today, The Real Estate Show’s Tools Tips & Techniques Radio Show discusses Buying Real Estate at Big Discounts at Property Tax Auctions and how you can too at our event: The Real Estate Show Tax Auction Experience
When a homeowner stops paying their property taxes, the county tax collector needs to recoup that lost revenue by issuing a tax lien. This is done by essentially offering an investor the opportunity to earn interest by putting up the money for the delinquent taxpayer. But after a few years of non-payment, the tax collector does the same thing a lender does in a foreclosure: they put the house up for sale in a public auction, using the proceeds to repay the tax lien-holders’ investment. That’s what a tax deed sale looks like. So is this form of real estate investing for you? Let’s explore it a little further.
Here are the typical deal killers when it comes to investing in tax deeds:
• You must have all cash, right now. In most places, these properties have to be paid for in full within 24-48 hours of buying them, so there’s zero opportunity for obtaining financing, unless you had it lined up in advance of the auction.*We have an alternative.
• You normally have no opportunity to do more than a drive-by inspection. More often than not, you can’t even go in the house at all until after you’ve purchased it. This is the single biggest reason these types of homes sell for 30% to 50% less than their peers: only an idiot would pay as much for a house they can’t inspect as one they can. *Note, we do more than just drive by at The Real Estate Show Tax Auction Experience.
• You have to make sure there are no legal issues. If the house has hidden liens – other loans, an IRS lien, a contractor’s lien, etc., it’s possible you’ll become responsible for them after purchasing it. That could instantly transform the biggest bargain you ever saw into the most costly mistake you ever made. Solution? The Real Estate Show Tax Auction Experience. always orders a professional title search. But that normally entails spending $75 – $200 on a property that you might not even bid on, much less win.
• If all that scared the heck out of you, good – this isn’t a game for the uninformed and it’s no free lunch. For those with the right mix of cash, knowledge and temperament, however, it is a game worth playing. Especially when aided and accompanies on The Real Estate Show Tax Auction Experience.
If you are ready, still willing, and able, here are the steps to buying a property for delinquent taxes
1. Step 1 – Find out how tax sales are conducted in your area. Call your county tax collection office (better yet, visit in person if you can) and ask about the procedures in your area. You’ll hopefully find someone both friendly and knowledgeable who can explain how these sales work, when they’re done, and how to get a list of properties. Ask lots of questions and learn as much as you can.
2. Step 2 – Attend an auction as a student-spectator. Get a list of the properties, look at a few, then attend an auction. Not to buy, but to observe. See how much the houses you found interesting actually go for. Talk to some of the people there – at auctions I’ve attended in the past, I found the people there to be mostly genial. Ask more questions, get more answers.
3. Step 3 – Get ready for the real thing. Get educated. Before the next auction, bring your new knowledge to bear. Find a title company or lawyer that will agree to issue quick, inexpensive title reports. Get the list of upcoming sales and carefully comb through it, discovering what’s available, then deciding what it’s worth and what you’re willing to pay. Visit the properties you’re interested in and do whatever inspection you can. If you don’t know what you’re doing, try to bring someone along that does. Narrow down your list, then get title reports on the final one or two.
4. Step 4 – Go for it. Attend the auction, put down your deposit and bid. But don’t go over the price you planned on paying. This won’t be easy – you’ve already invested time and money in your picks and you hate to see someone else get them, but that’s the way this business works. Be patient. There’s always next time.
• So there you have it – The Real Estate Show Tax Auction Experience method for buying property for back taxes. There’s a lot more to learn, and much of it involves details specific to your area. So if you’ve got the cash, the time, and the interest, I’d encourage you to explore this way of finding deals- The Real Estate Show Tax Auction Experience.
• Tax auctions are definitely not the easiest thing you’ll ever do, but wherever you live, there are people making serious money at it. There’s no reason you can’t.
• Avoid the pitfulls of going it alone. Come on a The Real Estate Show Tax Auction Experience, and see the difference for yourself. For a checklist of Do’s and Don’t contact us at www.AutomaticLandlord.com
Property Tax Auctions are a powerful way to make money in Real Estate, and so is listening to The Real Estate Show. Contact Eric Willner for a private personal conversation about your real estate goals.
Listen to the show live or the archived version in its entirety for all the tips, facts and ideas.
Want more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner. The Show is Live every weekday morning at 8 o’clock (EST) on Florida’s Money Talk Radio station WSBR AM740, FM 96.9, and FM 103.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.
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MackBuysHouses.com for a fast cash offer on Real Estate
MackSellsHouses.com for great deals on Real Estate Investments
MackBargainHouseHunters.com to Partner on Real Estate Deals
Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
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