This is the next thing I'd like to start learning - I've got some cash I'm not planning on using for 3-5 years. Can someone either call / email / consult / show / share where to get started with this.
I realize this is difficult and cut-throat from what I understand, but please send me down the road. I'll come back, unharmed, and armed with new knowledge.
I am interested in learning more about this area as well.
Washington is a tax deed state.
Hi @Steven Britton ,
As @Bryan R. mentioned, we're in a Tax Deed state. I haven't heard of anyone doing tax deed investing successfully in this state (unless they invest in tax liens out of state). Most of them get picked up before auction time and you're left with the bad ones.
Can I ask exactly what you're looking for in tax liens? Is it mainly cash flow? Is it the potential of owning a property at a very low cost?
If you're coming to the BP Meetup this Thursday, we can sit down and chat as well.
There are 3 typical Delinquent Real Property Tax Foreclosure procedures in the U.S.
Typically pretty much all Delinquent Real Property Tax Foreclosure has a high priority in the foreclosure markets as they go, meaning it takes senior to most other liens that might be on the property (with only 1 state that I know of is the exception to the rule). I for one always like to read each state statutes that I want to invest in, so that I know for a fact of the procedure how each state conducts their foreclosure process. That is why bank/institution financing on the property, they require a certain amount of monthly payment to be set a side to pay the property taxes, because they do not want to loose the their security in the property.
1 - Deed State in which State sells/auction the property itself & then You own the property to do with what You wish to.
The state of Washington is indeed a "Deed State". Once the sale/auction is conducted You pretty much own the property free & clear with a few redemption rights & errors of the sale might arise, but theese are very very few if any. If You are considering investing in the State of Washington I suggest reading the http://app.leg.wa.gov/rcw/default.aspx?cite=84 & more specific RCW 84.56 thru RCW 84.64.
2 - Tax Lien State
This is a State that only sells a Lien on the property which has a very high interest rate of return & not the property. Once the lien matures by the state statutes You then can apply for a Tax Deed. Some states You can contact the Treasurer of that county & for a few hundred dollars they will do the paperwork for you other states You have to do a Judicial Process with an attorney.
3 - "Hybrid State" these are states where they call them a Deed State, but You read their process & they do not actually sell the property but rather it provides either a high interest and/or penalty rate & after the state statutes time elapse. You can get the Tax Deed or apply to get a Tax Deed.
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