Tax Certificate Auctions Are not Where the Real Money is - Strive This Little Known Technique Instead
Tax certificate auctions are a soul-sucking, head-banging, "smash and grab" event you ought to never attend again. Okay, perhaps that is a bit of an exaggeration. Actually though, with the influx of investors into the sphere, it is time to move a step ahead and let all duke it out for those tax properties, while you quietly profit employing a methodology they are unaware of.
There's another, abundant less risky, abundant additional profitable means to make cash off of tax properties, and tax certificate auctions are actually an essential part of it. However, this technique does not involve owning any property, in the least (whew, right?), involves next to no cash to try and do (we have a tendency to're taking less than $500 in most cases), and will enable you to profit inside months-- not the year or therefore it takes to foreclose on those properties you get at tax certificate auctions.
It's extremely quite simple.
When investors bid at tax certificate auctions, frequently what's called an "overbid" occurs. That is when a property is price far additional than the taxes that are owed, and somebody bids accordingly. Say a property is value $fifty,000, the taxes owed are $5,000, and an investor bids $forty,000. There is an "overbid" of $35,000... $35,000 of that poor homeowner's exhausting earned equity.
In many states, that overbid goes right into the govt. coffers. No recourse for the owner. You lose your property, you lose your property. It isn't honest, but it's government for you.
But in about [*fr1] of the states, those funds are held in trust for the former owner. Only slightly more fair, because those funds finish up property of the state if the owner does not get down there right fast, and claim them. Sometimes they get one-5 years to try to to that. Still not fair, however at least they need a chance.
The problem is, most have moved on, generally long ago. They assumed they've lost everything-- most people do assume that, ask around-- and they do not bother to update their contact data with the county, and never receive notice that that money is available for them to collect. The time passes and runs out, they get nothing, and the govt. swallows up yet another hefty total from a laborious operating citizen.
That is where you come in.
Currently, most states have finder's fee limits on "unclaimed funds"- funds that are held at the state level. However these overages from tax certificate auctions are at the county level. Thus, throughout that amount of time when the owner will collect, they are NOT subject to finder's fee caps.
You give the extraordinarily valuable service of reconnecting these homeowners with the cash they're unaware of, and you're trying at a 40-fifty% finder's fee. Meaning 5 figure checks every time you make a deal... and in today's economy, they are everywhere.
Author Resource:
aaron adish has been writing articles online for nearly 2 years now. Not only does this author specialize in Finance, you can also check out latest website about
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