Welcome to another episode of AskAlHow. I’m your host Allan Susoeff. This video is part of my series where I explain the methods and procedure for Tax Sales in each state. In this post, I will discuss Arkansas Tax Sales.
This post features Arkansas Tax Sales Explained, A video posted on YouTube on April 9, 2020.
Arkansas Tax Sales Explained
Arkansas has 75 counties and is a deed state but is one of the few deed states which has a redemption period. The period is 30 days. Also in Arkansas the minimum bid is not only the lien amount which includes delinquent property taxes, penalties, interest, and costs, but also the county assessors assessed value which typically is around 20% of what the assessor believes the true market value is. This means generally speaking you’re gonna pay about 25% of the market value at a minimum in an auction.
Before we get started,
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Arkansas Tax Sales; Deeds
Arkansas has 75 counties in said deed state but is one of the few deed states is got an actual redemption period. The period is 30 days. Also in Arkansas the minimum bid is not only the lien amount which includes delinquent property taxes, penalties, interest, and costs, but also the county assessors assessed value which typically is around 20% of what the assessor believes the true market value is. This means generally speaking you’re gonna pay about 25% of the market value at a minimum in an auction.
All sales are live and in person, very little is done online, and some of the counties are fairly rural and hard to find information for your due diligence.
If you’re looking for bang for your buck, Arkansas is one of the better states. The median home is between hundred and 50 and $200,000 depending on where you are in the state and with a minimum bid being around 25% of market value, bidding at these auctions can be a great way to pick up properties for rehab flips or just to build a rental portfolio.
All orcs auctions are oral auctions held in person and the state starts in April and goes to about December. The good news is, you can do mailing bids if you can’t be there in person and they also allow over-the-counter at the state level.
I have bought many properties both over-the-counter and the auctions in Arkansas and I’ve never lost on a single one. Overall I give Arkansas a 4/5.
A Free Worksheet
Now what I’d like to do is give you guys a worksheet for the state of Alabama. Each one of the worksheets is several pages. Each one has all the information I just mentioned plus my personal notes for each state and then links to the states laws, other applicable websites, and links to every single County and in some cases municipality as in some of the northeastern states who run their auctions by city instead of by County. Finally, each worksheet has got a map of the state showing the counties for your convenience.
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.
