If you’ve been lured in by infomercials like the one by John Beck, promising that you can buy government-seized tax sale properties for almost nothing, you need to read this article. It’s not as simple as these television real estate gurus make it out to be, and if you’re not careful, you could end up in over your head, the owner of a piece of property you really don’t want. But more often than not, you’ll just end up wasting time and money on programs like the one John Beck sells, and then find yourself at tax sale auction unable to buy anything even CLOSe to what you saw on tv.
Why?
Well, for starters, these infomercials are trying to sell you on their product. The homes they show “free and clear” looking like a celebrity could live in them are often “after” pictures– what they don’t show you is the hideous state of disrepair the properties were in when they were bought for so little, or the thousands, tens of thousands, even HUNDREDS of thousands of dollars that had to go in to rehabilitating them to the point that they looked good enough for tv.
But even if they had shown you the actual state of the property at the time of purchase, what they don’t tell you is that at government auction, there is little to no chance you will be able to buy one of these properties. Why? Because there are companies with millions of dollars of operating capital and full staffs that spend all their time researching the upcoming tax auctions. These seasoned bidders will be standing right alongside you, and they can afford to make a smaller return on their investment simply because they have so much money– you’ll likely be outbid every single time. Plus, you’ll find that after you stop bidding, others will continue to bid, until the property has almost reached market value.
I’m sorry to be the one to tell you.
So there’s no quick and easy way to getting great properties at tax sale. HOWEVER… this doesn’t mean than tax delinquent property isn’t your cash cow, my friend. Quite the contrary, you just have to be a little smarter about it than your competition. You can still collect on those great amounts of equity in tax sale properties, but you’ve got to get to them before the government sells them at auction. You must locate the owners and approach them at a strategic time in the process, and help them see that it will benefit them to sell to you instead of losing everything at the auction (which is true).
Want to learn the secrets of deedgrabbing? Go to deedgrabber.info.
Olliver Kennedy is a successful entrepreneur and real estate expert.
[tags]tax deed, tax deeds, tax deed sale, tax lien sale, deed sale, tax deeds for sale, John Beck[/tags]
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