The Most Favorable States for Tax Sale Property Investors

[G.D. Haizlip]

Greetings Tax Sale Investors:

Yesterday, I received the following question:
"Which States have the most favorable laws for Tax Sale Investors?

The answer to this question is a bit complex because laws vary from state to state. In addition, depending your Investment goals, as a Tax Sale Investor, the laws/statutes will pretty much dictate or govern the process. Also, seasoned Investors do typically favor certain states for various reasons. Here's a brief overview of some of the advantages when Investing in certain states:

Here is a link for Licking County, OH which gives a good overview of the statute and includes an upcoming sale: http://www.lcounty.com/treasurer/delinquent_tax_dept.php

In States where there are no redemption periods (States I personally like), as a Tax Sale Buyer/Investor, you can own the property usually free and clear. e.g. Alaska, Arkansas, California, Delaware, Hawaii, and New Mexico, etc.

If you desire, you can also Invest to Make your money/profits by looking for States that will pay favorable amounts of Interest.

Texas is a great State for this because there is only a 6-Month Redemption, and you can earn anywhere from 25%-50% ROI.
Best case, if the property is not redeemed, you get the property.

Also, Here is a Money Maker for You in Texas: Texas Tax-Resales
http://www.co.travis.tx.us/tax_assessor/foreclosure/resales.asp
(Be sure to notice the status of these: Many are "Available" for Immediate Purchase, meaning no-bidding up/competition)

Arizona(16% ROI with 3yr Redemption Period) - Here you can also buy Assignments (Unsold T.S. Certificates) Over-the-Counter/via U.S. Mail.
Goto: http://www.delinquenttaxsales.com
Then, Click-on Assignments

In essence, the states with the most favorable laws really depends on what you as an Investor is more comfortable with as well as how patient you are when it comes to Tax Sale Investing. Patience is really important where the redemption periods are longer. Otherwise, I would suggest states where the redemption period is short and/or where you can purchase property with no-redemption period(s).

I certainly hope that this answers your question. If not, reply and I will reply-back. Or, if you want to know about a particular state other that those aforementioned I will let you know what I think/know.

DelinquentTaxSaleInvestor,
GdH-

[G.D. Haizlip]

Greetings Juzamjedi,

In regards to your question concerning redemption(s): Based on the Three (3) Months that you stated: The short answer is Yes. You will earn interest on your money. One point to note: There are a few states that may only pay the interest to Investors after 30-Days only. Some, on the other hand, pay Investors the Interest instantly, meaning as soon as you pay the lien or purchase the certificate, you start earning interest on your money.

Your Best Strategy Is This: Prior to attending the Auction/Sale, Just ask for the rules and ask the person/office who is handling the sale if interest is paid as soon as the lien/certificate is acquired/bought, or is the Interest Earned paid some-time after. In any case, you will get Interest in almost every state after 30-Days. Most Tax Collectors, etc., if you ask, will let you know when you begin earning interest on your $$$ without referring you to an Attorney (not suggesting that you don't talk to an Attorney(s) - as they are very resourceful, if needed).

Based on that, I think this answers your second question: However, no the states are NOT UNIFORM in the time-to-redeem, or how redemption works. For example, Alaska, Hawaii, New Mexico, and a handful of other states have no redemption periods which means you can acquire the property immediately. With those states, you only have to wait until they mail/send you the deed.

One final note: All Counties Within A State are uniform in how the "redemption" works, but All States again are not. Remember each state Delinquent Tax Sales are guided by the statutory guidelines. Therefore, redemption-periods are subject to each respective States' Delinquent Tax Sale Laws/guidelines.

If need, let me know if I can answer any more questions.

Much Success As You Invest,

DelinquentTaxSaleInvestor, GdH-