Tax Deed Investments
UNDERSTANDING TAX DEED INVESTMENTS
Tax deed investing is buying the title to real estate that has been sold by the government for nonpayment of taxes by the property owner. The owner of the tax deed now has the rights to the debt that is related to that property. If the homeowner pays the back taxes and any interest, it goes to the owner of the tax deed, or if the property owner does not pay the taxes to get caught up in a certain time frame, then the owner of the tax deed can take possession of the property at a fraction of the market value.
At The PIP Group we look for the right opportunities to purchase tax deeds at government property auctions to generate successful passive real estate income opportunities for our clients.
Things to Know About Investing in Tax Deeds:
- May require judicial (court) involvement to obtain title
- May obtain title directly from the auction
- May need to quiet the title to clear other liens
- May need to wait a certain period of time before taking possession (Hybrid States)
As its name suggests, a tax deed is what you get from the default judgement of unpaid property taxes. Tax deeds come in various “clarity,” depending on the state of your investment. By “clarity,” we mean there could be additional issues clouding the title. It could be something as simple as a lawn mowing lien for $50 or an IRS lien for $150,000.