How To Buy Land By Paying Back Taxes - YouTube

How to buy land by paying back taxes?

So, how to buy land by paying back taxes? First  of all you're going to discover that if you do  

this you can buy real estate for 5 cents, 10 cents  and 20 cents on the dollar and I was surprised to  

find that out especially when I learned that the  auction wiped out any mortgage on the property and  

now I could buy for these really low, low prices.  So, at the end of this video, I'll have a lot of  

insights for you but number 1, I'll also have a  free gift so know there's a free gift waiting for  

you at the end of the video and then I'll tell you  about 2 mistakes to avoid. So, over the 30 years,

things have changed and they've gotten better  and better or I should say easier and easier so  

making some changes, the county's done that, they're  certainly not up to date right now but they're a  

lot better than they were a number of years ago so  you can do this business online. It's a low profile  

business. You can stay at home, you don't have to  travel a lot, you can do almost all of it online  

and you can do it in many of the local communities  where you live. All 3,000 counties are authorized  

to sell tax-defaulted property. Now, tax-defaulted  is just what I'm saying. The people haven't paid  

their tax and now the county doesn't have enough  money to run the county. So, the county will take  

action, okay? Half of the counties will confiscate  the property, the other half of the property  

will be in states where they sell tax lien  certificates so they issue a certificate.

But the thing you really want to know about is  you want to be able to buy land by paying to back  

taxes. So, that means you're going to go in the tax  deed states and you're going to purchase property  

and when you purchase that property, you're now  buying that land for just the back taxes. Will  

it be plenty of those? I can assure you they will.  They're going to be selling houses, they're going  

to be selling agricultural property, they're going  to be selling small farms and ranches, they're  

going to be selling small office buildings but 20  to 25% of all auctions, you'll be able to buy land  

for just the back taxes at tax-defaulted auctions.  Now, the average person is not qualified to teach  

you how to purchase property at a tax-defaulted  auction. When you purchase this property, you must  

do it right or you'll expose yourself to a lot of  risk. All right, the properties are in default. When  

these properties are sold at tax auctions, you'll  receive a tax deed which is more than likely  

going to be associated with a quitclaim deed.  It will probably say right on it quitclaim deed.

This is important. Now, the auction business is a  big one, it's all over the United States, it's in  

every single county. They're going to auction these  properties. In the average year, they will auction  

off 2 to 2 and a half million properties.  So, there's thousands of properties in default  

with unpaid taxes. If you can buy those properties  for unpaid taxes, that means when you buy at the  

auction, pay the bill right then and there and  they wipe out the mortgage, the county deletes  

the mortgage from the property tax file. So, it'd  be- that means it's withdrawn, it's deleted,  

it's not going to be there so now you're buying  property without mortgage. Everyone would like to  

own properties without a mortgage. All right, now  these properties change hands. They always change  

hands by the use of a deed so, it's called  a transfer device. So, the county is going to give  

you either a quitclaim deed or a tax deed or  a sheriff's deed or it could even be a treasurer's  

deed, but all of those are nothing more than a  deed transferring the ownership of that property  

to you and when they transfer it, they wipe out  the mortgage, there's absolutely no mortgage. Now,  

hang on for a little bit because some of these  concepts are not too complicated but it's easy  

to confuse them and not to worry, when I finish,  I'm going to give you a gift and they'll give you  

insiders, secrets the tax liens and how to  make money with tax-defaulted property. All right,

now I'm not an attorney and I'm not a CPA but I  can tell you people mix this stuff up so sometimes  

the brokers will handle all the documentation,  sometimes attorney will handle it all but I can  

assure you the county will handle documents  and they'll hand things over to you that are  

quitclaims, not regular deeds. So, they give you a  treasures deed or a tax deed, those are going to be  

basically quitclaim deeds, meaning they disclaim  any responsibility. All right, now every year  

in all 3,000 counties, they can offer tax-defaulted  properties. In addition to that, 1,500 counties, 15  

of the 3,000, those properties will go out at  tax lien certificate auctions. So, there's 2  

kinds of auctions. At a tax lien auction, you  do not get possession. At a tax deed auction,

you will get possession of that property, so think  about what I said. You're going to get possession  

of the property at rock bottom dollar, hopefully  you can buy this with a 60, 70 or 80% discount. I've  

seen people get 90% discounts and when you buy  at the auction, whether it's a tax lien auction  

or a tax deed auction, there's no mortgage, it's  been deleted, it's been wiped out from the public  

records. Now, all of this business is mandated  by state law. In other words, the legislature  

makes the rules and then they hand the  rules down to the treasurer of the county  

who instigates and takes care of everything. So,  understand that a county treasurer can levy a tax,

they can collect the tax and if they can't collect  the tax, the treasurer can confiscate the property.  

When they're confiscated, they'll start the process  of wiping out the mortgage then they will sell it  

at a public auction. Now, that could be on  the courthouse steps or it could be online  

or it could be both at the same time but they're  going to sell the property without a mortgage and  

whatever they get for the property is what they  get for it. Now, are there other ways? Yes, you can  

do other ways trying to do it through brokers or  individuals but this is the safest way to do it  

because now when the county has their auction, it's  going to wipe out any other liens on the property.

If you buy from a broker or an individual, I can  tell you right now those liens are not going to  

be wiped out and now you're gonna not only gain  the property which you thought was a bargain,

but you're gonna gain all those liens and all  those encumbrances and any judgments liens,

anything that's on property, you're gonna get it  all but if you buy it from the treasurer, you buy  

it at a tax auction, you're now going to get a  property that's free of mortgage and most of the  

liens will also be wiped out. I've been involved  in it for 30 years, it's been around for 200 years,

everything is laid out very specifically at the  county records. You can read about the property,

you can inspect the property, you can't look inside  but you can look at outside the property, you can  

know everything you want about a property online.  I don't recommend you buy any property without  

looking at it or having someone with boots  on the ground that you know what you're doing,

otherwise all kinds of problems happen to people  that don't look at the property. All right so from  

a safety standpoint, you want to buy at a tax  defaulted auction that's conducted by a local  

sheriff or by a county official or even an  ex-official sheriff that the county has put  

in place to do exactly that. Now, why is the county  doing all this? The county is interested in money.

What do they need money for? They need money to pay  the county employees, they have to pay the police  

and the fire departments, they have to pay to  hire school teachers and build the schools, you're  

getting the idea, the county has a lot of bills and  it then transitions to everything from hospitals  

to collect the trash. So, they are going to collect  those taxes. Okay, so if a property owner fails to  

pay tax, you got the idea, they forfeit their rights  of ownership. Now, that's the law of the United  

States. If a person defaults on their taxes and  they won't pay them, they forfeit the property to  

the local government. So, I'm just about to finish  up and I'm going to answer a couple of questions. 

When you go to one of these auctions, be prepared  because you're going to be able to get discounts  

of 60, 70, 80, sometimes even 90% and you buy all the  properties without a mortgage. Okay, everybody's  

different. When you buy vacant land, you eliminate  a lot of risk. What kind of risks you'll get rid  

of? Well, vacant property burns down, vandals get  in it, people that are squatters, they get  

in it. It always is deteriorating so it always  needs maintenance so if you're gonna buy property,

I'm not negative on that of course but I'm gonna  tell you it requires maintenance and someone to  

take care of it so you'll have something to  do every single day and everything a week  

whereas if you buy vacant land, I'm not excited  about that, but if you buy residential lots, now  

you're in a good position because it's rare  do we find very many bidders and you'll get  

properties for rock bottom dollar. I recommend you  start by buying residential lots, not vacant land.

Why no vacant land? What does it appraise at?  How do you know? I don't buy vacant land because I

don't understand it. People ask can they buy before  the auction. Yes, you can buy anything anytime. You  

could go to the people and buy before the sale  but, do you want to buy the property and get the  

mortgage? You want to get all the liens? Do you want  to get all the problems? Well, go ahead and  

buy it before the auction, people do that  all the time then after they purchase it, they find  

out there's liens, encumbrances on the property.  I say let's stay safe and secure, let the auction  

take place, buy at the auction because the auction  deletes, it wipes out the mortgage and many of the  

other encumbrances. All right, so let me continue on  and tell you that below me is a free gift. It's  

called a Safe Haven. Now, this Safe Haven is going  to give you information on properties and tax lien  

certificates, it's also going to tell you a lot about  tax deed property so you can buy for those  

discounts of 60, 70 and 80%, and so that's  a good course and a good place for you to start.

Now, 2 big mistakes are made at these auctions.  Mistake number 1 is people buy without looking  

at the property, that's a huge mistake. What happens  if it burned down? What if it was really next to a  

chicken farm? What if it's next to the railroad  track where you can't resell it? I don't know 

but you need to get boots on the ground, yours or  someone you trust. The other big mistake that takes

place at auction is people get all excited and  start bidding and they don't have an exit strategy.

I'm recommending that you don't buy a property  that you don't know what you can sell it for,  

that's an exit strategy. If you don't know  what your exit strategy is, don't buy it.