When this happens and you have to let go of that certificate, it means you’ll not only get your money back, you’ll also be paid between 16% and 36% interest on your investment, depending on what state you are investing in!
What about the other 5% of the tax liens? Well, that’s even better news.
If property owners don’t pay their overdue taxes during the redemption period, you get the deed to the house.
You’ll own it!
Let’s hope you were thinking things through before you bid at the tax auction. If you didn’t plan on owning the property, you’ll be faced with a dilemma.
What will you do? Keep it? Sell it?
If you decide to keep the property, you could rent it out and use the monthly income to increase your personal cash flow. If you’d rather not have to deal with the responsibility of homeownership and you’d prefer to sell, there are a couple of things you need to keep in mind:
First, what kind of repairs or renovation will increase the value of the property?
You won’t have to do much. A little superficial grooming is often all you’ll need to do. In fact, you’d be surprised at the difference mowing the lawn and pulling weeds can make.
While you’re at it, pick up loose trash and sweep the driveway. All of these improvements might cost you a couple hundred dollars, but they could make you thousands.
Most successful tax lien and tax deed investors want to free their cash for future investment.
If you want to move the property quickly, remember this: don’t be greedy. You bought low, right? Sell low!
If you were awarded the deed on a property just for paying taxes owed, you probably got a really good deal; ten—or at most twenty—cents on the dollar. Let’s say you got the deed to a house valued at $100,000 for $15,000. Even if you sold it for $45,000 you’d have tripled your investment at 300%.
Again, greed will slow you down. Price the property to sell quickly and your money will be freed. You’ll be onto the next deal before you know it.
Thanks for reading, and stay tuned for more great blog posts 🙂
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