Are leftover tax deeds bad investments?

4 Replies

The state has a ton of unsold tax sale properties that have an expired redemption period. Is it not worth trying to profit from these properties held by the state? Once you become the new tax deed owner, how soon will you be handed the keys to this tax deed property?

On the first question, depends on the property itself. Many tax defaulted properties have weed abatements, IRS leans, or are contaminated. It's very very important to do your homework. most of the time the previous owners purposely let the property default and gave up possession because to remedy would not be worth it.

@Tony Marcelle - There are properties in the unsold list that you can profit on. You might have to shift your mindset though. For example: there are SFH properties on the lower end. There are also lots -vacant land that can be picked up from the list. It like everything else. Do you due diligence and research those properties and you are good to go. The wait time on the deed depends on a lot of things. In AL, the state might send you a quote for a property and then you have 9 days to get your check into them. Well if you are next in line, then that's good. You wait 9 days then you get the quote. What if you are 3rd in line? Then you wait about a month. Then you send in your check to the state. The state has to talk with the county and you get the picture. There's another wait. But if you are getting a deal then you wait. Nothing saying that while you wait you can't put together a listing on craigslist or another outlet to sell it. Best of luck Tony

Joe

@Joe Mclain Thanks Joe. I was able to talk to the people over at the county clerk office and like you said there is a long wait to get a quote back from them. My target was SFH, I would purchase land and vacant lots if I had buyers looking for those.

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