US Tax Liens & Deeds
I am sure you are now wondering HOW? Let us explain… when a homeowner or business becomes significantly late in paying their property taxes the county will auction off their property. The county offers an enormous benefit to investors who step forward and buy these property’s at auction because they need the money to meet their financial and budget obligations to pay for things like schools, firefighters salaries, roads and infrastructure etc.
Now, the moment you purchase the property at the auction it is yours for all intents and purposes. You can begin to collect rent on the property, move in yourself or do as you see fit. The former property owner has 180 days to pay you back what you purchased the property for at auction plus a 25% state mandated interest penalty (in Texas) to reclaim the deed to their property. If they fail to deliver payment to you, the investor, within the 180 day window then the property is now 100% yours and you can continue to rent it for cashflow or sell it as you see fit! Sound too good to be true? Its all there in the Texas Property Tax Code!
In a tough economy like we are faced with today with banks paying 1-2% interest on your money; where else can you find government mandated returns of 25% every 6 months and purchase property for a fraction of its value?