Things I’ve learned about tax deed investing.

1. Property assessment – check with the county assessor (especially for smaller counties) or an assistance assessor.

-save possibilities on your PC and folders that hold info of properties you’re interested in.

Properly assessor usually has the longest history of that property and justification behind the price of the sale of that property.

2. Tax history and property record – treasurer (their section of the web site)

-sales history. See what the property has sold for in the past. Bring up a copy of the deed when the transaction took place.

-ownership history.

3. Check out the pictures or images of property – how recent?

-hire a college a student to take pictures by putting an ad in Craig’s list or college web site.

-do a comparative market analysis. Finding comparable property and see their worth.

4. Set in advance exit strategy.

-If pay $2k more than you are likely to get a better place.

-The end objective will influence how you invest.

-short term investing= you may have already contacted a possible investor. Else you’ll have to market the property.

-long term investment that are closest to being rentable and best opportunity for long term investment.

5. Maximum bid based of % of estimated value

To set your maximum bid.

Assessed value $130K

Opening bid $16K

Bid to value ratio 12%

Exit strategy – long or short

Maximum Bid – Max bid to value ratio:

Starts at 12%, max or 20% or 25%

$24K to 32K max bid.

-can often tell if it’s an old lien if the money is high and the property is worth $500.  Opening bid amount to assessed value. County register will have the record on the property.

6. Title search: it’s an ownership history on a property. Tell if loans on the property, liens, extra owners, Basic cost about $30-$50.

-naco.org: gives county info.

-Zillow: property evaluation site.

-a google map lets you see property

-get a deposit in a county you’re interested and start doing bids.