Overview of the Tax Sales Process with Tax Liens & Case Studies.

Allan Susoeff here. Welcome to another episode of Ask Al How. Before we get started, I want to just give you a quick word about who I am.  I have spent the last 30 or so years in this fantastic business called real estate. I have owned a construction company, been a residential builder, have a degree and license to practice Civil Engineering, hold a PhD, and still with all that I chose to buy, sell and flip homes for a living. And now I teach you guys how to do the same thing. If you want to taste the FREEDOM of owning your own business, calling your own shots, and making your own money, then listen up; I can help you with all that.

This video is part of my Tax Sales channel of videos.

If you find this information useful, you should go to AskAlHow.com and check out my Ultimate Tax Sales course. There’s more than 5 hours of video training there are about 140 various different Downloadables to help you buy and sell Tax Liens and Tax deeds. And as always if you’ve got questions make sure you stick them in comments section below and I’ll do my best to answer them for you.

This particular video is a basic look at tax liens, what they are, how they work and a few case studies. Lets get started then, ok?



Leading Up to the Auction

The first thing of course is some property owner is late on their taxes. They become delinquent. Let’s say they have a house worth $200,000 and they have $2000 in taxes that they go delinquent on.  Who knows why, the homeowner owner may have some other issues going on, they may have just forgotten, or the bill may have got lost in the shuffle of day-to-day life but the bottom line is they’ve not paid their taxes and they’ve not paid them for typically at least a year.

The county typically sends out multiple letters letting them know that the Delinquent and that their property now has a tax lien placed on it and will be going to auction soon. I say this because there’s a myth out there that as investors were stealing properties or that the government is socking it to people without good reason or any other number of stories. It’s simply not true. If a homeowners property goes back to a tax auction you can rest assured that they’ve had many, many chances to correct the deficit and simply have not done it.

The next thing that happens is that the delinquent property along with all the other late properties are listed typically on a county website and also in various public forums such as a newspaper or whatnot. This is about the time that you as an investor can get involved.

Pre-Auction Activities

Once a property is listed for auction that’s when you as an investor can get involved.

 One of the first things I teach my students in the paid version of the course is to know which area of real estate you want to work in and stick to it. For me that’s mostly single-family freestanding homes, or Buildable vacant lots that I can put a freestanding single-family dwelling on.  This is another one of the really great things about getting involved with tax sales. There’s all kinds of properties out there. It is not just homeowners that lose their properties. Builders and developers lose lots all the time. Sometimes they will get to an end of a project they’ve already made their money and the lots are not selling and to be honest it’s just easier to walk away from them than it is to continue to try to market those lots. Incidentally, here’s a little gold nugget for you. I’ll talk about this more due diligence but when you’re looking at lots make sure you know what you’re looking at. More than once I’ve seen somebody buy something like a 1 acre lot that turned out to be a 10 foot wide drainage ditch 5000 feet long at the back of a subdivision.


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