Tricks for Succeeding at a Tax Deed Auction

In recent years the prospects of investing in Tax Deed Auctions has started to attract professional investors.

Therefore competition for Tax Deeds particularly in metropolitan areas can sometimes be steep. But if you are a determined individual investor you don’t need to give up and instead can use some of the below creative techniques to still get the Property you set out to purchase.

First it needs to be mentioned that the above said institutional and professional investors mainly attend Tax Deed Auctions in metropolitan areas, where values of properties tends to be quite high and properties tend to move quicker, thus enabling the investors to quick flips. This makes sense for them because they don’t want to mess with Properties worth $5,000 to $30,000 in rural areas which using traditional sales methods might take a few months to sell.

How To Obtain Funding For A Tax Deed Auction

Like in any market, Tax Deed have their share of problems. For example there is competition. Excessive competition during tax deed auctions auctions will affect the prices drive them up closer to the true market value. However in the Tax Deed arena has some ways to circumvent the number of problems I am listing below;

In this publication I am focusing on the most drastic problem investors face when attending Tax Deed auctions, particularly when targeting higher value properties.

The problem is that Tax Deed Sales are usually a Cash affair. That means you can’t come to an auction with $500.00 in your pocket expecting to be able to buy a $100,000 property and then spend the next few weeks qualifying for financing, like it happens in the regular market for residential homes. Instead most counties have regulations expecting any winning bidder to come up with the full cash within somewhere between 24 and 48 hours from the sale.