You will find that some counties will offer tax lien certificates, while others will offer tax deeds available in their tax sales. In some cases, you will find that a county might offer both tax lien certificates and tax deeds in their tax sales. I am not going to go into the details of why this occurs or what the difference is between tax lien certtificates or tax deeds in this post.
If you want to build up a portfolio of properties for wholesale prices that you can sell for fair market value, you might consider reading a bit further to learn about how I pick and choose tax deed properties. There are a lot of properties that are sold at tax deed sales nationwide or that are available on the over the counter property list that are not your traditional parcel of land. In fact most people would think that these properties do not have any real value. In reality, they do have a lot of value, if you have an exit strategy in place. The properties that I am talking about are parcels of land that are land locked or odd shaped. Now, you might be agreeing with the norm after reading that statement.
What can you possibly do with landlocked or odd shaped parcels of land? Isn’t that the reason why these are up for sale in the tax deed sale auction or on the over the county tax deed property list in the first place? Normally, these properties do not have structures on them, so the taxes are based on land and not on land and improvements. Also, these properties are usually bordered by at least one to four or more properties. Why is that important? Well, how would it be for these adjoining properties to be able to increase their acreage by buying that parcel from you. In many cases, the tax deed properties are bought for a lot less than what the market value is today.
You will be buying tax deed properties for wholesale prices and selling them to an adjoining property owner for fair market value. It might be a situation where you need to hold onto the property for a period of time before they might be willing or interested in buying it from you. I will follow this blog post with another blog post that will introduce some other ways that you can profit from buying tax deed properties.