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Unlocking the Power of Tax Deed Investing

  • Writer: John Abbitt
    John Abbitt
  • Aug 1, 2024
  • 2 min read

Updated: Oct 11, 2024

Tax Deed Investing: A Path to Financial Freedom

Tax deed investing is one of the most powerful ways to grow wealth in real estate. It offers investors the opportunity to acquire properties for a fraction of their market value, all while generating significant returns. By purchasing tax deeds at auction, you have a chance to acquire property directly from the county, often paying only the amount of unpaid property taxes. If the original owner doesn’t redeem the property, you own it outright—sometimes for pennies on the dollar.


Why Tax Deeds Are So Profitable: One of the key reasons tax deed investing is so lucrative is the discount at which you can acquire properties. Counties are eager to collect overdue property taxes, so when you purchase a tax deed at auction, you can often pick up properties for a fraction of their true market value. Whether you're interested in flipping, renting, or holding for appreciation, tax deed properties provide multiple strategies for making money.

Additionally, in some states like Texas, there's an added bonus: if the original owner redeems their property, they must pay you a steep interest rate—up to 25% or even 50%—on top of the taxes you paid, meaning you win whether the property is redeemed or not.


How to Get Started with Tax Deed Investing:

  1. Do Your Research: Start by researching the rules in your state or county. Every jurisdiction has its own procedures and timelines, so it’s essential to know the details before jumping in.

  2. Attend Auctions: Look for local tax deed auctions in your area. Many counties hold them online, making it easier than ever to participate from the comfort of your own home.

  3. Evaluate Properties: Don’t buy blindly. Make sure to research the properties you’re interested in before the auction. You’ll want to assess the condition, location, and potential market value.

  4. Secure Your Finances: Before bidding, make sure you have the cash available to complete the purchase. Tax deed auctions typically require full payment at the time of sale.


How Our Product Can Help You Maximize Your Returns: While tax deed investing offers incredible potential, one challenge many investors face is the redemption period—especially in states like Texas. After winning an auction, your cash can be tied up in the property for months, leaving you unable to access those funds for new opportunities. That's where our Tax Deed Cash-Out Product comes in. We offer a cash-out refinance solution, allowing you to pull out a portion of your investment without waiting for title clearance or going through a traditional lender.


With us, you can take your money from one auction and immediately use it at the next, giving you the flexibility to keep growing your portfolio. Contact us today to learn how our tax deed lending product can help you stay liquid and keep reinvesting.

 
 
 

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