ALLAN Susoeff here with AskAlHow talking to you today about Tax Sales in our various 50 states. In this series of videos, I take one state for each video and explain the basics of tax liens or tax deeds in that state. In this video, we will be discussing Tennessee Tax Sales. This Post Features the Tennessee Tax Sales Explained video posted on YouTube on May 11, 2020.
Tennessee Tax Sale Explained
Introducing My Latest Book:
Tennessee Tax Sale Facts:
The State of Tennessee has 95 counties and is a hybrid state. Liens in Tennessee are sold on a Premium Bid system at 10% interest and after a one-year redemption. Those Liens turn automatically into deeds.
Tennessee tax deed auctions are held annually at various dates.it is totally at the discretion of each county. Most of the Tennessee Tax sale auctions are held on location. The deed is sold to the property is sold to the highest bidder. After the auction, the successful bidder receives a tax deed but has no occupancy right until after the redemption period ends. The deed is self-executing.
The tax deed has the same force and effect as a tax lien until the right of redemption has been foreclosed. If the property owner redeems, the winning bidder will receive their investment back plus a 10% per annum interest. Otherwise, the purchaser of the tax deed will receive the full deed to the property at the end of the redemption period. Unsold tax deed properties are sold to the county and are available Over the Counter.
I give Tennessee tax sales a 3 out of 5 and I’ll tell you why. While it’s kind of a pain that you have to wait a year in terms of the redemption, Tennessee’s properties fall right there around the mid-range for properties throughout the United States. If you are a real estate investor trying to either flip homes or build a portfolio this is a great state to work in. I think the profit from Tennessee Tax sales possibility offsets the time in the lower interest rates.
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.