Those looking to make a smart investment have numerous options. While many choose to invest in the stock market, there are actually investment opportunities in one’s very own neighborhood. Tax deed investing is an incredibly lucrative investment opportunity that allows investors to earn a passive income in their own time. It has been practiced for over 200 years, since the establishment of the United States. Essentially, investors work with their local government to buy property at a fraction of the cost of its actual value. From there, investors can sell the property at full value to earn themselves a substantial profit.
Tax deed investment opportunities are not available in every state. About half of the country offers these opportunities, while the other half offer different tax lien investment opportunities. Potential investors should conduct research about their state to determine if it is available. A Tax Deed States List can be easily found online. While every state handles the process differently, the process is quite similar, regardless of location.
Local governments usually begin by auctioning off properties. These properties are those that have unpaid taxes. The value of the auction usually only includes the price of the delinquent taxes, making them incredibly cheap when compared to their actual value. Additionally, the price may include auction premiums and fees. Either way, the price of the property is incredibly discounted. The winner of the auction then owns the property. In most states, ownership begins after the sale has concluded. However, other states require a period of time to pass for paperwork to be completed.
In the end, investors have full ownership of a piece of property at an incredible discounted rate. Investors are then left to do what they want with the property. Many choose to sell the property immediately for full value. Others choose to renovate the property. This will increase the value of the property with a bit more investment. Regardless of the investor’s strategy, they will surely earn a profit on their investment. They can earn a substantial income by performing these investments. While it may seem daunting at first, the investment process is fairly simple for anyone to complete. All it takes is a bit of knowledge and research to earn a passive income with tax deed investing.