Common Doubts Regarding Tax Deed Sales

Have you heard about tax deed sales?

If so, you might have your doubts about whether you can actually make money buying and selling tax deed sale properties.

You’ve probably heard about the money that can be made buy buying tax deed properties for a low price, then reselling them for a substantial profit. No doubt you’ve seen the courses on those half-hour infomercials late at night that promise vast wealth for pennies on the dollar.

Is that true?

Or is this just a ploy to dupe you out of $50 bucks while you’re half asleep and easily gullible?

Can money still be made buying land at tax deed auctions and reselling for a profit?

You might be thinking …

1) Everyone knows about this by now.

2) The tax deed sales auctions will be crowded and competitive.

3) All the good properties will be bid up to a high price.

4) The leftover scrap properties aren’t worth buying anyway.

5) I don’t have the money to invest in property.

6) I don’t have the time to invest in property.

7) The risks–buying a property with leins–far outweigh the rewards.

8) I don’t need the stress. I have a good job and I know what to expect.

Let’s go over this

1) Everyone knows about this by now.
People do know about tax deed sales, but that doesn’t mean they will act on their knowledge or apply themselves to learn how to bid on these properties. Lots of people are busy working to pay off a mortgage and don’t have time to get involved. Others may have the time but don’t have the money. Some have the money and the time, but don’t have the interest. If you’re willing to do some research and jump from the diving board of fear into the pool of possibilities, you’ll learn how to do this.

2) The tax deed auctions will be crowded and competitive
There is still room to find a bargain and resell it at a substantial profit. How? A number of reasons.

Sometimes the sales have a small number of people.

I remember attending a sale in Levy County, Florida.

There were only 4 bidders.

Before the sale, I chatted with everyone to see what lot they wanted. We made agreements that we wouldn’t bid on lots that others wanted for themselves.

I picked up a 40×100 lot for a less than 400 dollars. (A year later, a lot this size, in the same subdivision, sold for $5,100 dollars. Generally, realtors or private owners sell lots in this subdivision for $2,500 – $2,500 dollars.)

As you can see, there’s still the chance that you will be one of a handful of bidders.

So, research the lots that interest you. Call the tax clerk to verify that the lot is still for sale (has not been redeemed). While you’re on the phone, ask them if the tax deed sale is still scheduled for the date that it is listed.

3) All the good properties will be bid up to a high price.
Sometimes, but not necessarily. People want different things and, usually, have limited resources. You’ll find that some people want whatever they can purchase cheaply, while others have one property that they’re willing to get at any cost, even if it’s more than market value.

Attending a tax deed auction is an interesting experience. Recently, I visited an auction in Titusville (Brevard County) with my friend Steve. About fifty lots were up for sale.

On the first twenty or so lots, most of them were 1.25 acres and located in remote areas of the county.

Two young ladies sitting in the back bid about $25,000 for eight of them. Then, they left the room.

Later, they returned but didn’t bid on anything.

Toward the end of the sale, about eight lots were up for auction. These lots were 1.25 acre lots in remote areas without roads to them, which went for $1,950 to $2,250 each.

I’ve seen similar lots sell for $6,000 – $8,000 on Ebay. If you were to pick up one of these lots for $2,000, you could sell it for $10,000 – $12,000 dollars with financing, giving yourself monthly payments.

Initially, this sale was crowded, with about 50 people in the room. Near the end of the sale, however, there were about 25 people in the room and only about 4 people bidding.

Save a few thousand, research, then attend a sale. See for yourself.

4) The leftover scrap properties aren’t worth buying anyway.
This is not always the case. Certainly, research is required in order to find a property that has value, but even if you get a scrap property, you can sell it.

A while back, I attended a Levy County sale of escheated lands. Escheated lands are properties that went to the tax deed, but no one bid on them, so they went back to being owned by the county. These are also called “struck off” properties, as “struck off” to the county. In short, these are county-owned lands.

At the sale, I purchased 3 lots for under $1,000 dollars. The first lot was 15’ x 165’, a corner lot fronting two dirt roads. The second lot was 60’ x 70’ feet fronting a dirt road.
The third lot was, well I don’t know the exact measurements, but it appeared to be 25’ x 70’, fronting a paved road. The last lot was triangle shaped, where the beginning points of the 25’ line converged at somewhere near 70’.

I ended up selling the lots for $2,025, so, I did make profit.

5) I don’t have the money to invest in property.

Do you have $2,000 dollars? If you do, you can get started.

If you don’t, consider cutting out some of the habits that are absorbing your funds.

Are you spending $4 a day on coffee at Starbuck’s or Dunkin Donut’s?

Try buying coffee at the gas station kiosks, or a fast food chain, or making it yourself.

Or try kicking the habit altogether and drinking more water.

One of the main reasons why people are sick is because they are dehydrated. Visit www.WaterCure.org and www.WaterCure.com and follow their water cure recipe to lose weight, cure disease, eliminate insomnia, and more.

6) I don’t have the time to invest in property.
Of course you do, you just don’t consider it a priority. If it’s important enough to you, you will set aside time for it.

Ironically, a lot of people work at jobs they don’t like and arrive home feeling tired and frustrated. Then, they relax by sitting in front of a TV all night, eating dinner and snacks while watching programs that don’t serve to challenge or inspire them in any way. Hours later, tired and sluggish, they crawl into bed. The next day, it’s the same routine.

Is that living? Sounds like a treadmill to me. But, at least they know what to expect.

I wrote this course Make Big Profits Flipping Florida Land to show you how to buy properties at tax deed sales in Florida.

It’s all a matter of steps.

If you follow the steps, you will be able to get a property and sell it for a profit.

At the end of a year, you might own 12 properties that you can hold for investment or sell for profit.

My first year doing this, I bought 12 properties.

And how did I start?

By visiting the county clerk’s office, asking questions, and visiting the property appraiser’s office and asking more questions.

If you want something, then move in that directions.

Make it happen.

7) The risks–buying a property with liens or is unusable–far outweigh the rewards.
Are there risks involved in buying property?

Yes.

Do the rewards outweigh the risks?

Yes.

Over the course of a year-and-a-half, I purchased 15 properties.

Two of them had houses on the lot. The rest were vacant land. All of the properties were purchased at tax deed sales.

I researched them, but, for the most part, did very little or no research into finding out if their were leins (debts) attached to them.

Thankfully, at the the county where I had purchased these tax deed properties, the leins are erased when the property goes to sale. So far, all of these properties have been sold for a profit.

8) I don’t need the stress. I have a good job and I know what to expect.

As this is a business, there is some stress involved. As you learn how to buy and sell tax deeds by actually attending auctions, and buying and selling tax deeds, the stress can be minimized or reduced to bearable levels. The more experience you have, the more insulated you’ll be from being affected by the stress. Like surfing. Either you ride the wave or it rides you. Think of stress in the same context. Either you ride stress (fear), or it rides you. As you gain experience, the stress will subside to manageable levels. At that point, you’re riding the wave.

Tax deed land sales at the 67 counties throughout Florida can be terrific investments.

However, a tax deed is actually the final stage for what was once a tax certificate.

What was once a tax certificate, once it goes to sale, becomes a tax deed. (Think of a tax certificate being a freshly laid egg, and a tax deed as a freshly hatched egg.)

Because of the high number of tax certificate and tax deed sales in multiple counties throughout Florida, there’s always room to find land for bargain prices.

If you’re not interested in buying land, many counties have tax certificate, also known as tax lein, sales. These sales provide terrific investments that, commonly, give you an ROI (return on investment) of 18% – 12%.

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Kris Kemp is a writer, copywriter, musician, traveler, creative entrepreneur and the author of 20+ ebooks. He specializes in copywriting for sales pages, landing pages, squeeze pages, and email marketing campaigns. He has a variety of interests that share the common theme of freedom–health freedom, time freedom, financial freedom, location/travel freedom.

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