The Pro's and Con's of Tax Deed Investing 

Hi, could you share your experience in the last 6 months?

I'm trying to get into this myself and the way I see it is most people don't know about tax deeds and liens and those who do don't know anything about how they work and those who do don't know anything about how to actually go about investing in them and those who do often quit because they got burned once or twice for whatever reason. I don't live in Oahu, HI where I'm sure there is a whole niche for tax deeds and liens dominated by big businesses, but where I'm looking to invest there isn't that level of competition. Don't get me wrong, it's there, but I've lost the chance to invest on a few properties already due to uncertainty, which means I found a deal before everyone else did, I just didn't strike while the iron was hot. I'm trying to learn the process and establish a method in my area right now so I don't get burned, but just from talking to people I know and reading the comment sections of videos, most people who are even aware of this and want to get into it are confused and probably not going to follow through on becoming knowledgeable. It's also protected in a way from it becoming a super saturated niche because the laws and processes are different from state to state and county to county so its not like I can learn all about my area and make youtube videos telling someone across the country something they can do in their area. There are no monolithic all encompassing online courses I'm aware of because the market isn't big enough to do this in your specific area, maybe state, but then you're increasing your competition. I'd say it's worth getting into and I'm pursuing it still.

@@Joe-bj8hzHello, sorry but can you please explain it more. Is it a huge problem to buy a property that’s only a TAX DEED? I’m interested buying a property but the owner acquired it through TAX DEED issued by the county.

@@eagleeye2427 A tax deed is a legal way to acquire a property. There are quit claim deeds, warranty deeds, tax deeds, ect., but they're all deeds that give you legal ownership and rights to the property. County's issue tax deeds to recoup lost tax revenue and it's usually a last resort. If there were no consequences to not paying property tax, no one would pay them and counties wouldn't be able to pay for public services. So states have laws that outline the process for their counties to follow in order to recoup unpaid property tax. There are tax deed and tax lien states. The difference is tax deed states will go straight to auctioning off your property whereas tax lien states issue liens first, then there are hybrid states. I believe most states are tax lien states now. It makes more sense because it provides a path for ownership for investors (incentive) but gives delinquent tax payers a chance to pay what they owe. Every tax lien state could vary slightly, but I think most look like this: Person doesn't pay their taxes, county places a lien on the property, there's a tax lien auction, people bid for liens with interest owed on it, county makes money back at auction and issues winning bidders tax certificates and unbidded on properties are county held liens and available for purchase year round first come first serve. If tax payer wants to pay off lien, they pay the tax collector the principal plus interest, all of which goes back to the lien investor. If the property owner doesnt pay up then there are 2 options. The person who purchased the lien certificate doesn't do anything and after many years the certificate expires, OR after a time set out by state law the certificate holder can apply with their county for a tax deed and either a deed will be issued outright or the tax deed will be generated THEN go to auction and bid on. If no one bids or the lien holder has the highest bid, they get the property, pay off all remaining tax liens against the property, and pay fees for all the administrative work the county does for the process. Congratulations, you now legally own the property. The county gives many chances, usually up to the auction date, for the owner to pay off their taxes, and they have a legal right to sieze the property over delinquent taxes. Check your property appraiser's map and see if there are any boundary disputes, check to see how many times the property has changed hands recently, how long the current owner has had it, if THEY'VE paid THEIR taxes, and if there are any nuisance abatement liens or sub surface mineral rights associated with the property. Being sold to the current owner via tax deed is not inherently a red flag.

You should!

It varies from state to state. In my state if property taxes go unpaid, then a lien is put on it by the county because they want their money, so they make a certificate that goes to auction annually. If no one buys the certificate at auction, then the county gets it and people can buy the certificate year round from them. Then after a certain time has elapsed since the certificate was issued and has gone "unredeemed," the owner can apply for a tax deed to be generated by the county. Once the tax deed is generated by the county it will be sold at the next monthly auction to the highest bidder. If the certificate owner is out bid and doesn't get the property, for the highest bidder to legally acquire the property they must pay off all outstanding taxes and interest, so the certificate owner still gets their money back plus interest. There are tax lien states, tax deed states and hybrid states. Find out what state you are, then find the associated state statute that lays out the process (the whole process should be all laid out in the same chapter of your state's statute likely sequentially from start to finish), then look at your property appraiser's or clerk of court's website to figure out how your county/parrish actually goes about selling liens/deeds to the public.

@@Joe-bj8hz I truly thank for taking the time to answer my question in full detail. ✨🫡 I learned a lot!

Apparently in the USA a lot of times the banks sell the mortgages to eachother and the proper owner of the mortgage isn’t notified that the deed is being auctioned

I've only been looking into this for a few months and maybe his state is different but from what I've read it doesn't wipe away the mortgage. Lender can still put a lien against the home to protect themselves from loss and you'll still need to work with them. This is the first I've seen from him and maybe his others go into more detail but there's a decent amount of research to do to make sure you're getting a clean title. But to me it seems very unlikely that you'll ever get one that if money is still owed to a bank or brokerage that they are just going to say yah we don't care about that money and not put a lien on it or just bid for it themselves.

Glad you think so!

Some of the top markets in Florida known for great real estate deals include Miami, Orlando, Tampa, and Jacksonville. These cities offer diverse investment opportunities in both residential and commercial properties. Remember to research market trends, property demand, and your investment goals before deciding.

Same ! How has the process been for you?

That's a huge topic that we have a whole course on. Really hard to distil into one video

Click here: linktr.ee/dustinhahnrealestateinvesting Pop in your email and grab instant free access to our Mini-Course. As soon as you get the 'Training Login Info' email, log in and you're all set. Then, just find the 'ABCs of Tax Lien and Deed Investing Bundle,' click ‘View Product’ button, download, and you're good to go. Enjoy!👌

It really depends. Both can be cheap and both can be expensive. You can get OTC liens for $100, and a student of ours just bought 7 acres of land for $500 accidentally at a sale. So there's really no good answer to this lol!

Sure can! It's more competitive but it can be done!

You totally lose the overage paid.

Hey Catherine! You should definitely plan on attending the sale, but it might be a bit ambitious to buy at this one, but take it as a learning opportunity :)

Hey! the books are free, but the course is super super indepth with training calls weekly. So 2 different things, but you can definitely get started with the books!

Okay it can be remove, how much does it typically take to clear? (Florida)

Welcome

It’s best to reach out to the tax assessor's office in the county where the sale is happening. They handle the notification process and can confirm whether everything was done right. Most counties keep detailed records of notifications, and these are usually available for public review. If you need help finding out who to contact or how to access these records, the tax assessor or tax collector’s office is your go-to-they’re there to help you out!

Get It here: linktr.ee/dustinhahnrealestateinvesting

Click here: linktr.ee/dustinhahnrealestateinvesting Pop in your email and grab instant free access to our Mini-Course. As soon as you get the 'Training Login Info' email, log in and you're all set. Then, just find the 'ABCs of Tax Lien and Deed Investing Bundle,' click ‘View Product’ button, download, and you're good to go. Enjoy!👌

If you are looking to acquire property, Tax Deeds may be the best option for you.

Tax lien and tax deed investing are different. With tax lien investing, you purchase a lien for unpaid taxes, giving you the right to collect the overdue amount plus interest. However, this doesn't clear other existing liens, like mortgages. In tax deed investing, you buy ownership of the property through a foreclosure auction. Tax deed sales usually clear junior liens (like second mortgages), but senior liens (like primary mortgages) may still be a concern. Before bidding at a tax deed auction, research all liens and understand deposit requirements. Deposits are often refundable if you don't win.

Did you get this resolved? What was the details if you don’t mind

@@kenneth3558 No, the realtor was rude when i asked and stopped answering my emails so I think there was something else going on there. Maybe she just lied to me because that reason seems made up still

Hey Sorry Zeus, we only have digital copies now

Not if you just quit claim it. Then the next owner can clear title if they want, but they don’t have to

We used to send out hard copies, but not anymore. Everyone seems to prefer the online version these days.

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Visit this link:linktr.ee/dustinhahnrealestateinvesting, enter your email to gain free access to our Mini-Course. Once you receive the 'Training Login Info' email, log in to start. Navigate to the 'ABCs of Tax Lien and Deed Investing Bundle,' click the ‘View Product’ button, download it, and you’re ready to dive in. Enjoy! 👌

County assessors public records search. Title search.

yes! You can get in touch with my team here: linktr.ee/dustinhahnrealestateinvesting

Book a call with us here: linktr.ee/dustinhahnrealestateinvesting

Click here: linktr.ee/dustinhahnrealestateinvesting Pop in your email and grab instant free access to our Mini-Course. As soon as you get the 'Training Login Info' email, log in and you're all set. Then, just find the 'ABCs of Tax Lien and Deed Investing Bundle,' click ‘View Product’ button, download, and you're good to go. Enjoy!👌