Investing in Properties is the ultimate wealth generating tool! The best way to get properties that have built in equity and cost a small fraction of their fair market assessment of worth
is definately taxation
foreclosure auctions.
Tax Properties
Every property that is owned is assessed property taxes that must be paid every year. Property taxes are paid to local and state governments based on the appraisal assessment of worth
of the real estate. All states, the District of Columbia, Puerto Rico and the American Virgin Islands and Canada have property taxes.
When a property owner doesnt pay their taxes, they are usually penalized and warned. If the owner still doesnt pay the taxes, the property is either seized, gets a lien placed against it, or both. After due process, the property is sold at a taxation
auction.
Tax auctions provide one of the most extraordinary investment opportunities that exist to date. If properly educated, an investor may buy real-estate for a small fraction of what it is worth. They might
rent, sell, or use the property for themselves.
In most states, the government taxing agency allows investors to pay a delinquent owners taxes. The investor receives a tax lien certificate. If the owner desire to keep the property, they have a limited measure
to pay off the lien, including interest, fees, and any additional taxes that had been paid after possession. If the owner fails to pay off the lien, the property is deeded to the investor.
In some states, the government taxing agency will not allow investors to pay the taxes, so the property is seized and goes to the agency. The property is then auctioned off, usually for back taxes, penalties, and interest. The successful bidder typically gets 1st lien, so the dead is free of cost and clear.
In other states, the delinquent property is sold at auction for the amount of taxes, penalties, and fees, but the original owner has a instant period to buy the property back. The buy-back price includes interest (commonly very high), penalties, fees, etc. The taxing agencies generate the deal as sweet as possible to encourage investors to bid on the properties and solve the delinquent taxation
problem.
If you are an investor, or are thinking about investing in properties, you are well advised to look into tax foreclosure auctions. This is the only consistant and realistic way to get properties for a small fraction of their real fair advertise assessment of value. In fact, most properties are auctioned for between $200 and $5000. At the very least, attend an auction in your area and watch for yourself. You will be amazed at the prices smart investors are paying for multi hundred thousand dollar properties.
