Buying government tax sale properties does not always mean a quick or plentiful return on investment.
There thousands of properties in the inventories of the government and lenders at the moment, prices are low, and this is good for investment purposes.
The investor still has to consider that it is a buyers and not a sellers market.
Any investment property purchased in the present real estate market will more than likely have to be held until the market strengthens for resale to make a decent profit.
This is possible to do by renting the property until the market picks up.
Government tax sale properties are properties that the government has foreclosed upon because of the failure of their owner to pay a tax bill.
Paying tax and filing returns is taken very seriously in the US as you all know.
When a homeowner fails to pay his due taxes the government is able to issue a lien over his deed, these kinds of circumstances only really happen when you fail to communicate with the tax department and ignore their demands.
But it does happen, in fact at present there is an upsurge in government tax sale properties and bank foreclosures.
To take advantage of the Government tax sale properties market is it important to know a number of things.
It is not vital to be a very experienced investor, but good to forearm yourself with all the correct research and knowledge.
In this way you will know if you are making a wise choice when investing on such a property.
Find out as much as you can about the financial circumstances of the tax sale property you would like to invest in.
This is important as there may be other outstanding liens and you want to walk away from the sale a winner, not a loser.
It is very important to try to inspect the property, you might not be allowed to view the interior, particularly if the property has not yet been auctioned.
But you can get some idea of the value of the property from the outside and assess its value based on similar properties in the same area.
Visiting the County Court or the County Tax Assessor is also a way to find out the value of the property in question.
Talk to neighbors, and try to formulate a historical outline of the property.
Familiarize yourself with all the rules, and law of the State to assess if your investment in Government tax sale properties will be worthwhile.
Make use of a title search company this will provide you with the names of all persons on the title.
The deed will also allow you a good idea of a description of the land.
Often pieces of the land have already been sold and will not be included as part of your purchase.
Understanding exactly what you are in for ensures success through this method of investment.