You may have heard that tax deed investing is a great way to purchase properties for back taxes. But here are some reasons why it doesn’t always work out that way.
First of all these tax sales can be competitive. Although bidding for tax sale properties may start at the back taxes owed, most residential properties are bid up at the sale, sometimes close to market value. Then what makes it even more difficult for the average person to buy a home at a tax sale is that in most counties is, you need to pay for your winning bids in full on the day of the tax sale or the day after the tax sale. That means that you have to have all of your cash on the day of the sale. You do not have time to get financing. So what is a tax deed investor to do? Is it still possible to buy tax sale properties for pennies on dollar? Continue reading
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