Simple Research at No Cost! All of the Exciting Details of Making Big Profits Investing in Government Tax Deeds…
For developing effective buying strategies there is a right tool for every job. If you need to put nails in to a piece of wood you use a hammer. If you need to cut a piece of wood in half you use a saw. If you need to create a small hole in the wood you use a drill. For most people this is common sense. Most people don’t cut wood with a drill or a hammer, the same principle applies to the Tax Lien Certificate and Tax Deed business. You need tools. You need education materials that will help you accomplish your objective. Unfortunately, 65% of the individuals I meet attempt to do the Tax Lien Certificate and Tax Deed business the wrong way. This happens because people are unaware of the information that’s in existence. This website and the Incredible Free Offer are dedicated to helping you learn more with little or no investment.
Why Invest in Tax Sales?
I often get asked some variation of the following question: What’s the best way to make a really good deal buying real estate? My answer: Generally speaking, foreclosure auction sales, more specifically, Tax Lien Certificate sales and Tax Deed auctions. Why Tax Lien Certificate sales? To answer this question we need to examine the components of a really good foreclosure auction sale. Ideally, bargain hunting real estate investors want to attend foreclosure auction sales that meet each of the following four requirements:
An affordable opening bid.
Considerable equity if the real estate were bought at that affordable opening bid.
The real estate free and clear of all other liens if it were bought at that affordable opening bid.
No one else attending the sale to bid up that affordable opening bid.
Recently I learned of an investor who had uncovered a potentially great deal at lender mortgage foreclosure sale, together, let’s examine the transaction and make a comparison: The opening bid was about $15,000, certainly very affordable by mortgage foreclosure or sheriff sale standards. The property in question is a single family dwelling worth in excess of $100,000. The foreclosing mortgage was a first lien and the real property taxes had been paid current. Consequently, there would have been considerable equity if the property had been purchased at the $15,000 opening bid, over $85,000 worth. And, if the investor had purchased the property he would have owned it free and clear. Unfortunately, for the investor, there was a problem: One and only one other bidder showed up. That one other bidder bid the property up to $60,000. The competitive bidding killed the deal! The investor had to drop out, he ran out of money. If this other bidder hadn’t shown up he would have made a real good deal. If the competitive investor hadn’t shown up the other successful bidder would have gotten an even better deal. Buying a free and clear property worth in excess of $100,000 for just $60,000 is obviously a good deal, however if that property had been purchased for just $15,000, it would have been a considerably better deal. The point: Foreclosure auction sales can produce extra-ordinary deals. Moreover, the biggest obstacle in an investor’s path is the competitive bidding of other investors. The $15,000 opening bid being bid up to $60,000.
Can this competitive bidding be eliminated?
In some states – YES!
The answer is no, that’s the primary reason I am so fascinated by Tax Lien Certificate sales. The opening bid is certainly very affordable, one year’s real estate taxes together with associated penalties and the cost of the Tax Lien Certificate sale. The opening bid on the sale of a $100,000 property would be less than $5,000. Further, in the absence of state liens, if an investor were to purchase the $100,000 property at the opening bid, there would be an excess of $95,000 in equity. Certainly a considerable amount of equity. And the investor would own the property free and clear
But what about competitive bidding?
There isn’t any. Oklahoma law provides: The first person who offers to pay the full amount due on any parcel of land shall be considered to be a successful bidder. In the event that more than one such person shall so appear at the same time the county Treasurer shall decide the issue by fair and impartial drawing. If another bidder were to show up the successful bidder would be decided by a flip of a coin. Whoever wins the property at the opening bid.
Wealth Building and Thinking Big
Teleconference with America’s Tax Lien Certificate
and Tax Deed Authority Ted Thomas
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