Golden Rule # 1
Real Estate For 20 Cents On The Dollar
REAL ESTATE INVESTORS , IF YOU COULD BUY SINGLE FAMILY HOMES WITH NO MORTGAGE ... TED THOMAS
Golden Rule # 1
Know what you ' re buying . This includes the size of the parcel , how many buildings are on it , zoning , restrictions , easements , the annual amount of property taxes , the appraisal value , previous sale prices , and current condition .
The next question that must be answered is where and when are the auctions taking place ? Normally auctions are conducted at county offices , but not always . Regardless of the location , it will be announced in advance of the auction . Some counties hold one big annual event while others schedule tax defaulted property auctions monthly , annually in the United State of America there ’ s over 5,000 tax defaulted auctions .
Secondly , you must know how the bidding process works . Rules vary from state to state , taxing district to taxing district . Some counties use an online bidding process which is becoming more and more popular , but the majority still hold live auctions you may attend in person .
Taxes are usually assessed at 1 to 1.5 percent of the property ' s value . So a piece of real estate valued at $ 100,000 will be assessed somewhere around $ 1,000 in taxes each year . Three years of back taxes would equal $ 3,000 and the local county will probably ask for a minimum bid at the tax defaulted property auction of $ 3,500 the county will add late payment penalties to the back taxes .
At the auction , each parcel number is announced in turn ; then the auctioneer asks for opening bids . It works much like any other auction ; the bidding goes up until there are no more bids . The person who wins with the highest bid is awarded a Treasurers Tax Deed from the county treasurer . Make note there ’ s dozens of unique bidding processes , this is only one .
Real Estate For 20 Cents On The Dollar
There ’ s big money to be made buying tax defaulted property at auction Tax defaulted property ( tax deed ) auctions allow you to buy low and resell for a quick profit . Do your research , and you ' re bound to find success !