Redeemable Tax Deeds In Georgia

movieGeorgia On My Mind

If you’re a tax lien investor and Georgia isn’t on your mind, it should be. Even though Georgia is a redeemable tax deed state, the redeemable tax deeds in Georgia are much like tax liens, with one big difference that means more money in your pocket. That difference is that instead of an interest rate, you get a penalty. That means that no matter when the deed redeems you get the full penalty, not an annualized interest rate. But it even gets better than that. The penalty is 20% and the redemption period is one year. Only 2 tax lien states can beat that and only if the lien is held for a full year. (In Illinois the rate is 18% per 6 months and in Iowa it’s 24% per annum).

Better Chance of Getting The Property Than With Liens

And if you’re interested in owning property, you have a much better chance of doing so in Georgia than in a tax lien state. That’s because in order to redeem a redeemable deed the property owner must pay the back taxes plus the penalty interest on the full amount that you bid at the tax sale. So let’s say the original bid amount is $5,000 on a property with a market value of $100,000 and you were the successful bidder for $20,000 at the tax sale. If the owner redeems the deed, they must pay the $5,000 plus 20% on the full $20,000 or another $4,000 for a total of $9,000. The rest of the money due to you, the investor, is paid out of the tax sale overage from the county.

Shorter Redemption Period Than Most Lien States

If that isn’t enough to make you think about investing in Georgia, here’s another benefit: The redemption period is only one year, not 2 or 3 years as it is in a lot of tax lien states. So you have a high rate of return, with a fairly short redemption period and a better chance of getting the property – 3 reasons to look into redeemable deed investing in Georgia.

Serious Investors Only

But investing in the Georgia market is not for the faint of heart. You need to have a minimum of $20,000 to invest in this market and $50,000 or more is even better. Since the deed to the property is actually bid at the tax sale, and not just a lien, these redeemable deeds are typically bid up to a percentage of the market value of the property. I recommend that you attend one of these tax sales to see just how competitive they are in the county that you want to bid in. Another drawback to investing in Georgia is that they do not have any online tax sales, so you will have to physically attend the tax sale or have someone attend it for you.

Tax Sales As Often As Once A Month

But here’s yet another plus to investing in Georgia redeemable deeds, some Georgia counties have tax sales as often as once a month, so you don’t have to wait a year to attend the next tax sale. If you’re interested in investing in Georgia and would like to learn how you can invest in this market yourself, or have the experts do it for you, then you’ll want to listen to the replay of this webinar I hosted with Charles Sells of Platinum Investment Properties Group. You can watch the replay below.






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