Tax Deed Investment Case Study

Article Written By: tedthomas

Do you think it's conceivable that you can buy real estate for pennies on the dollar and then sell it, making a considerable return on your investment? You may have read stories like this by people who want you to think it's easy. Actually, it can be done, but only if you learn the ropes. Where can you find the knowledge you need? Can you go to a media center, or maybe a bookstore and find the data? Most likely not. But there is an even easier way - and that's asking.

Start by comprehending that you just don't know what you don't know and the facts that allow you to make a lucrative deal won't be found in newspapers, books, TV or the Internet. The truth is that very few people toil at looking for the advantageous deals so they can make exceptional profits.

Let's consider the story of a person named Sandra. After completing a course on tax lien certificate and tax deed investment, she was prepared to make real profits. She did her investigating and decided to start looking for property in Warren, MI. She traveled there and went right away to the county court house.

She started investigating by asking queries. Quickly she asked for a list of properties the county was foreclosing on for default of the property tax. These were properties remaining after the auction that no one else was attracted by. Sandra established a rapport with the clerks at the courthouse and they cheerfully answered her queries. They assisted Sandra by providing her a list of defaulted Tax Liens and Tax Deeds available to the public over the counter.

Sandra was able to find a parcel that she acquired for $427 via tax deed. This was a three-bedroom, two-bath home - for only $427. The state of Michigan actually sells tax lien certificates but this property had gone unredeemed too long and it was up for grabs.

You might be thinking that's inconceivable. When is the last time - if ever - that you read about an investor purchasing a residence for $427? Yet that's exactly what Sandra did. She bought a Treasurers Deed for the house over the counter at the Warren, MI courthouse.

The key to Sandra's favorable outcome was simply asking. If she hadn't taken the time to speak with the clerks, she might never have discovered such a profitable deal.

There's More to the Story

But Sandra couldn't profit from the deal until she freed the title. This is a legal procedure in which the tax-defaulted homeowner must be advised and receive due process of law before the house became hers.

The house wasn't in the finest condition, either. Sandra had to pay for maintenance and upkeep. But after the work was done, Sandra easily found someone who wanted to lease the home. After renting it to them for three years for $500 a month, the renters wanted to purchase it and Sandra became their homeowner's loan holder as well as their landlady.

So the purchasers had compensated Sandra $500 a month for rent for several years and then began making loan payments of $500 for an additional seven years. Imagine - $500 a month for 10 years = a huge $60,000!

This is just one true windfall story of somebody just like you who made a tidy profit from investing in tax lien certificates and tax deeds.

About the Author

Ted Thomas - Visit Ted's website and receive your FREE copy of the 57-page Start Up Guide now at www.tedthomas.com.

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