Tax Deed Investing Inquiry

[Gregory McKinley]

Hello BP,

 I am new to the investing world. My focus will be mainly on tax liens and tax deeds. I would like to supplement my FT corporate income with this method of real estate investing. I am in the learning phase currently, with the hopes to attend my first auction soon, whether it be online or in-person at a live auction. I would like tips and advise, if possible, on how to invest in tax deeds remotely, and if a property is won, what would be a great game plan to have/exit strategy. Thank you for the support. 

[Milan Obradovic]

Gregory McKinley I have done tax deed investing in PA. In my opinion, buying sight unseen is not recommended. For a property to be worth any money as a tax deed you would need to see what condition it is in. Second, narrow down properties that interest you before the sale, drive them preferably and go to the county assesment office to look up any mortgages or liens. Judicial sales are free and clear of property taxes, but not necessarily mortgages and liens. Third, once you have as much info on the property or properties you are interested in, go to the auction with a set amount of cash to buy it that day. In PA, receiving a deed can take up to 3-4 months in some counties or more. During this time the property can be broken into and turned into a squatters paradise if it was vacant before the sale or in a seedy neighborhood. Once you buy a property, there are few exit strategies. Rehab and rent. Sell via quit claim deed (need to read what this is) or clear title and sell normally, either with or without rehab, personal choice. Hope this helps some!

Btw. Diff counties have diff rules. Please check procedures in county you plan on investing.