dennis roy

Tax Sale -The secret to becoming a successful investor in tax deed real estate is to know the who, what, when, where, why, and how these tax auctions take place.
Golden Rule #1

Know what you’re buying. This includes the size of the parcel, how many buildings are on it, zoning, restrictions, easements, the annual amount of property taxes, the appraisal value, previous sale prices, and current condition.

Taxes are usually assessed at 1 to 1.5 percent of the property’s value. So a piece of real estate valued at $100,000 will be assessed somewhere around $1,000 in taxes. Three years of back taxes would equal $3,000 and the county will probably ask for a minimum bid at the tax deed auction of $3,500 because the county will add penalties.

The next question that must be answered is where and when are the auctions taking place? Normally auctions are conducted at county offices, but not always. Regardless of the location, it will be announced in advance of the auction. Some counties hold one big annual event while others schedule tax deed auctions monthly.