Tax Land – Land Investment analysis
What is it?
TaxLand or real estate.
Tax land is land that is on the taxing side of the government, that is either directly or indirectly owned by the government. This land is managed by a public entity and the recorded title shows that the land is either owned directly or in a private ownership group. A tax deed or tax lien description does not include information on the ownership rights of the land, only that it is owned by the state, county or city. Occasionally however, the land may be owned by more than one person.
Does it cost anything?
The official government rates of tax land are usually determined by the tax appraisal district where the land is located. Rates vary widely from about one to ten dollars per acre. Although the owner of the land will pay a small fee to allow access, most landowners do not pay a deed tax. If the owner does pay a deed tax, the owner does not have to pay anything to the government in return.
What are tax rates?
This depends on the number of residential and non-residential properties (commercial and industrial) on the land. Rates can reach 15 to 50 dollars per thousand of assessed value.
What is a property record?
A property record shows the names of owners and the length of their legal ownership in the property. It also shows the assessed value, usually calculated by the amount of tax that has been paid, or by the value of the taxes since the property was assessed. Since the process of buying and selling lien and deed rights is probate – having a trust or attorney is advised.
What are other states doing?
Most states have already made the sale of lien and deed rights publicly accessible. The public can search property records and find out details about overdue taxes and other property documents. Deeds and mortgages can also be found in public records.
Is tax deed sales necessary? Is there anyway to find out where tax lien and deed sales documents are being published and when they will be sent to the county?
Yes! There is a tax lien sale section in almost every newspaper in the US. Because researching and buying tax lien and deed rights is so easy, now there are websites that sell tax lien and deed certificates as well, so you don’t have to leave your chair to buy one! In some states, real estate investors are starting to buy tax breaks now, in anticipation of when the economy rebounds, and other real estate investors are buying tax deeds now because they know that the prices are bound to rebound and increase their money quickly.
What other information do you find on business property?
It’s actually quite amazing to get a feel of what business and investment properties look like just by looking at them. It’s even trickier when you’re doing it for yourself because a similar sense of recognition is not only required to recognize the value of business real estate, but also you have the added benefit of knowing exactly what it is that you’re looking at because you can go down to the tax sale office and check the records.
What do investors charge for buying tax deeds or lien rights?
There are Landanks sites that offer information about buying tax deeds and lien and deed sales. They usually charge a fee of 25 or 40 dollars per quarter with a one-time investment of putting in your money and getting a good return.
What is the first step?
First, you have to determine if you want to buy properties versus just collecting tax lien certificates. If you just buy tax lien certificates, you will never make any money at it; the properties will just sit back and you will never see them again. But if you want to buy tax deeds or simply sit back and collect those empty tax sale properties that they will always bring, you will usually buy a property rather than nothing. And then, be prepared to act quickly; many of these properties go unsold because they are such great deals that people simply don’t want to wait.
Twenty-five dollars for one quarter of a real estate small fortune is a minimal fee and considering the profit potential of owning profitable properties, that’s one more than you should pay!
How is this better than the stock market?
Unlike the stock market, where your portfolio is likely to fluctuate every day, tax deeds and tax properties are just simple little documents that tell you what you need to know. The bank doesn’t care how much you paid for a particular apartment, condo, and house; they care that you’re earning a profit. The government cares that you’re paying taxes. So if you want to own profitable properties, and you want to enjoy at least a little sense of security in your work, the tax auction scene is the ideal environment for you.
If you are a true investor, then you have to begin with the end in mind.