In 2013, I attended a workshop on different types of business ventures. Here are some of the things I learned about tax deeds as a business venture.

There are risks to keep in mind when involved with tax deeds. When it comes to costs, Bid to value ratio 10% worth of properties is suggested. Also, existing fees not removed in FC (HRA fees, city fee.

Do a title search: in county property records. . They are the most accurate and most detailed. Some properties have a complicated history (from owner to owner). See if the property you want is rural land or has a building on it. Also watch out for useless land or overpriced land

Pay attention to the age of properties -1980s and 1990.s this would be a good age range to shoot for. You will want to check the yard. Has the property been loved and maintained or neglected. Also see if the houses are roomy between each other. Look for neighborhoods that are well established.

If an IRS lien was placed against the property, simply give the responsible agency notice of ownership. They’ll have 60 days to decide whether or not to pursue the lien. If they do, the investor will be reimbursed for the purchase.

Qualified sale: arm’s length, transactions of more than one party-done through a bank etc. paid full value of the property.

Quiet title action is when you change from title deed to a warranty deed if you want you the property. Do quiet title action. It might take 6 mo. cost $600-$1000. With a warranty deed, it should be able to get insurance.

Tax deed: owner gets full ownership rights. It is important to read up on foreclosure laws from the state you buy deed from. Variance may allow for certain things to survive foreclosure process.

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