Just Recently Turned On To The Concept Of Tax Deed Real Estate

anybody have any experience with this sort of thing? is it worth doing more research into? is it profitable?

thanks.

Yes, it can be very profitable. Among other deals, I've bought a 3BR house for $175, including obligatory auction fees, a 7 unit property ( already 5/7 rented) for $22,000, and a couple of lots worth about $30,000 for $160. All within the past 3 years. And I'm not even John Beck. You've found the right forum, and some strategic Googling will find more forums. Some counties start the bidding pretty high, so seek out the counties that start low. Now start reading.

wow. that is just insane. do you just turn around and sell the properties or do you rent them out? do you mind posting more information about the houses you've purchased at such a low cost? i'm super interested in this and would certainly appreciate any information you could offer me.

Don't expect the grandslams with your first at bats.

You need to learn the system preferably in your area. Start saving some money and then go bid on property, after a while you can position yourself for the unbelievable deals with big profits.

I started down this path of tax deeds 12 years ago, but it really interested me at first and I just bought stuff for fun.

It's worth the research. Yes.

onlyy problem i'm seeing as of now, is my state/county only does the auctions once a year. not a whole lot of opportunity to get invovlved.

i'm also not finding a whole lot of general information on the internet. i've been looking for Tax Deed and Tax Lein information...

also, yeah, i don't expect to just magically get rich. i'm really looking to start small for sure. if for no other reason, just to make sure i'm actually doing this the right way.

thanks for the reply.

I agree grandslams aren't common, but I guarantee you if you don't show up you'll never get one. The 7 units I bought--after just a few months in REI-- I still own, and they've paid for themselves several times over, grossing about $32,000 a year, not a bad ROI. The house is rented for $335 a month, and I did put about $3000 into repairs after owning and renting it for a year to the guy who was living there when I bought it.

Not all counties start properties out at low bids. Rural remote ones--where I live and work--sometimes do, and if you can figure those out, then show up, you never know what you'll find. At the sale I bought my 3 BR for $175--I'd done a drive-by, and was ready to pay $5000--there were two other houses that I hadn't looked at that sold for $50 + fees and $100+ fees. Don't even know what kind of shape they were in, as they were 20 miles out, and I didn't bother to drive over and look. Guess I should have.

You need to consider other counties, too. I've never bought in my home county, but I've bought in five others, and I only buy if I know for pretty sure I can at least double my money. Some counties sell on terms, like 10% down, 10% interest, etc. Find out. They can be good too, using leverage. Sadly, most counties start at something near appraised value, and there's only money to be made if you're happy with small returns. Some sell for over what they're worth, as neighbors can value it more than investors. Until you start going, you'll never know what's going on out there, though, so go!

[ Edited by investor59 on Date 07/31/2007 ]

i just can't wait to get started. i'm in the military and i'm getting out next May... headed back home to missouri and plan to get started on this... seems MO only holds auctions in August though... so i'll have quite a wait. i'll have to check into Illinois as well.

you in military count on me for some help if you need and tanx each state and county have different rules but i would think that tex certs are yearly and tax deeds are weekly in county i do in fl i dont do houses much i do all dirt and if cant steal dont touch you might have get quiet title to market them so PLEASE do your due diligence