Property Tax Sale at Government Auctions - Pay Defaulted Taxes & Flip That House For 18,000% Profit

By Nolan Speers

 

Have you ever thought about what the consequences are when a property owner becomes incapable of paying their taxes?  Well as you may of guessed the tax man is unforgiving and they will do whatever is necessary to retrieve the tax owed, including forcing the buyer to foreclose on the property. On the surface this may appear like a very bad situation, however, there are other sources of public financing available to help this owner. That's where people like you can profit while providing a potential 'light at the end of the tunnel' for the distraught home owner.

A public property tax sale, also known as 'property tax liens', are auctions organized by local government councils in an effort to dispose of tax debt. What occurs is that the public bids on the debt owed by the property owner. For argument sake say you are the winning bidder. That means you are paying off the tax debt on behalf of the property owner by buying a tax lien certificate which establishes you as the new lender to the property owner. The property owner has to pay you back with interest before the expiration of the redemption period as predefined by the government. This redemption period can be any time between 6 months to 4 years.

However, the caveat for the property owner is that if they don't pay the loan as agreed upon, you, as the lien certificate owner may foreclose the property and take title of it. Everyone wins, so long as you are paid back the full amount of the tax debt plus the healthy interest owned. This way, you obtain a good interest rate on a very low risk investment, while saving someone from losing their property and/or home.

I won't tell anybody, but I'm guessing you are actually hoping the owner will default on your property tax sale loan so that you can take ownership of the property. Actually you don't have to feel guilty because you have relieved them of an impossible debt situation and saved them from being forced into bankruptcy. It allows the owner a chance to start a new chapter in their life with available credit and a clean slate. 

Do you think property tax sales are a worthwhile investment? Read on as it gets even better!

Whenever a property tax sale is auctioned off that date becomes the starting date for the redemption period,  and the clock starts at that point. As I mentioned earlier the owner has to pay their taxes before the redemption period expires in order to keep their house. Where the opportunity lies is that if the tax lien certificate is not sold at the auction, that auction date also becomes the starting date for the redemption period. Just a few years ago these auctions where relatively unadvertised, so in fact there are tens of thousands of property tax sales liens that have already surpassed their redemption periods. If this last paragraph sounded complicated that's okay, because the bottom line is that by simply paying the debt of an expired property tax sale lien you take possession of that property immediately.

The opportunity here for a savvy investor is better then any investment I am aware of! Whether the house is for you to live in, rent, or flip back onto the market for a good profit just imagine the boundless opportunities. You can purchase an expired property tax sale lien for anywhere between $1000 - $20,000 and immediately turn around and sell it in the open market, in some cases for a $180,000 profit!

To review the top sites with the most property tax lien auctions and listings in the US visit government auctions or go directly to property tax sale.

Nolan Speers has been investing in real estate for over 15 years and specializing in foreclosures for the last 5.

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