Is Tennessee A Tax Lien Or Tax Deed State? - YouTube

Welcome back, I'm Ted Thomas. And on this video,  we're going to answer the question "Is Tennessee  

a tax lien state or a tax deed state?" So, I'll  get to all the details on that in just a minute  

but, right now I want you to know, you'll  also learn how to make some money  

secrets that other people don't know  and I'll cover that in this video.  

And I'm also going to talk to you about a few  mistakes that you might make and I want to make  

sure that you don't make those so that you  avoid the risk. I'll be back in just a minute.

I'm Ted Thomas. You don't know me but I've been  doing this for 30 years. I started out as an  

investor with tax liens and I transitioned into  buying tax defaulted properties, and I've made  

a business of doing that. I made a business of  teaching. So, I started out years ago. Just made  

a few audios to answer people's questions. I had  so many questions. Then, I started making CDs that  

became seminars and I've been teaching people  worldwide the same business for over 30 years but  

simultaneously, I'm an investor. I'm a practitioner.  I do this as a business. Is Tennessee a tax lien or  

a tax deed state? Well, it's a redeemable deed state.  Now, we talked a little bit about redeemable deeds  

in the past but, let's give you a refresher on that.  So, if you missed one of those other lessons, we'll  

talk about a redeemable deed. Now, a redeemable need  works this way. The local county didn't collect the  

taxes, so the property owner now is in default. So,  what they will issue is a redeemable tax deed. Now,  

unfortunately, they're going to let the world know  about that. They're going to put in the newspaper,  

they'll put it on the websites and that's  where you can find these redeemable tax deeds.  

Now, there's 95 different counties in Tennessee. And  those 95 different counties all sell redeemable  

deeds. That simply means that there's going to  be an auction, and they're going to auction off  

those redeemable deeds. The highest bidder will  get the redeemable deed, however, they won't get  

possession of the property. What will happen is  the property owner will stay on the property  

even though, whoever the highest bid was owns the  deed. Now, that owner of the deed now has to wait  

1 year before they can take possession of the  property. So, that means the property owner has 1  

full year to come in and pay that redeemable deed.  Now, what do they have to pay? They have to give  

you back all your money. Let me say that again,  whatever you bid, you get back all your money  

plus 10 percent. So, that's the rate of return in Tennessee,  its 10 percent on that redeemable deed. Now, how many of  

these will they have? They'll have thousands of  these. Now, keep in mind, we've got 95 counties.  

They can all sell redeemable deeds. They can sell  them when they want but they announce the auctions  

in the newspaper, online and they'll also have  have websites where you can find redeemable deeds  

that are available. So, you could buy 1 for 50  dollars, 500 dollars, 50 thousand dollars. What you're  

basically doing is you're paying someone else's  back taxes. Now, you don't get possession. So, you've  

invested your money but the property owner remains  on the property. So, it's very much like a tax  

lien certificate, however it's a redeemable deed.  Now, if the people don't pay, you'll ultimately  

have that property. There's a difference between a  redeemable deed and a tax lien and a regular deed.  

Now, they're all different but that doesn't mean  you can't learn how to do it. It takes 4 to  

6 weeks to learn how to do this. We have all  kinds of courses we could teach you, but today  

let's give you as much as possible so you can  get the idea how it works. So, 95 counties will  

sell the tax deeds. When do they do that? They'll  do it at a live auction. They'll announce the  

auction site, you can go there raise your hand at  the auction to buy, but if you prefer not to buy  

at that auction, they'll let you do it online. They  do both and sometime they'll do both at the same  

time. All right now, about half of the states will  sell tax lien certificates, the other half of the  

states will sell tax defaulted properties but in  between all that, there's a few states that sell  

redeemable deeds. Texas, for example, redeemable deed.  Georgia, redeemable deed. All that means is that you  

buy and bid, but you don't get possession but you  will earn a high interest rate. Tennessee was 10 percent,

Georgia was 20 percent and Texas was 25 percent. So, you can see  this is a very lucrative business without a lot  

of risk. For example, you bought a redeemable deed  in Tennessee. You bought it, you just go home and  

sit and wait. It's a passive investment. There  isn't anything you can do. You can't take over  

the property, you can't push the people out. You have  no possession and no rights of possession. All  

you can do is sit at home, wait for the people  to pay. If they don't pay, you're going to end  

up with the property, but if they do pay you're  going to have to give back the deed and you're  

going to get all your money back plus you'll earn  10 percent. So, you see this is a powerful way to make money  

that you can do online and anybody can do it. If  you want to buy one for 50 dollars, do that. You wanna buy  

one for 5 thousand. All right now, on the list of  all the tax liens and tax deeds that are available,  

or in this case the tax deeds, you can pick the one  that you want. You don't have to go and say, "They're  

gonna give me one that I don't want." You can pick  those from a list. The list will show all the tax  

numbers of the properties, and then you can take  the tax number and go right to the county records  

and research what that property is. You could also  research if it was a 3 bedroom, a 4 bedroom  

or whether it was worth 200 thousand or  100 thousand. But, the tax that's on the  

property is generally 1 to 2 percent. I rarely  see taxes over 2 percent, but that tax is due  

every year and the property is going to go to  tax default if people don't pay for it. So, let's  

talk about why all this is going on. If you're  not familiar with the system it works like this,  

the local county needs money. They need money and  they get all their money from taxes and that's  

called property tax. It's universal in the United  States that every single county has a property tax  

to pay. All right, so every property has a property  tax. If they don't pay, the county can't run. Why  

can't it run? Because it needs money and it has no  money. So, when you pay your property tax or anybody  

does, that money is used to pay for the property  employees, for example, the county employees. It's  

also used to pay the school teachers, it's also  used to pay the people that maintain the schools.  

Every county service that's provided, whether it's  the sewer or the court system or the water system,  

everything that's provided by the county has to  be paid for. Now, some states, they sell thousands  

and thousands of certificates. Places like Texas,  254 counties. Every one of those are going to sell  

redeemable deeds. That means you buy the property  but you don't get possession until 180 days go by,  

Here in Tennessee, it's only 1 year so you have  to wait 1 year then you can take possession of  

the property. So, I think you're kind of getting the  idea. All right, now let me give you some background  

on mistakes that you could make and make sure  you don't make those mistakes. Mistake number 1,  

never buy a tax lien a tax deed or a redeemable  deed without looking at the property. Why? Because  

there might be a problem with the property. For  example, if there was a thunderstorm or a tornado  

and it wiped the property off the residential lot?  You'd have nothing there. But you're saying, "Oh Ted,  

I can see a picture of it but I don't know when  the picture was taken." So, you always have to have  

a look at the property. Now, if you're doing this  online, we have ways to teach you how to do that  

online. We have someone check it out. But, a simple  thing to do would get an Uber driver or a Domino's  

pizza guy, send him out there with his camera which  he's got a phone, take pictures and make sure the  

day before you bid that property is there. If  there's no property, you will have spent a lot of  

money and you won't have a property that has any  value. And the county's not going to be responsible  

so you are. So, you never want to buy a property  or buy a tax lien, a tax deed, or a redeemable  

deed. Never buy one unless you've already looked  at the property. Now, the 2nd big mistake is  

people don't understand that they're going to  get a property ultimately. So, you purchased a  

redeemable deed. You wait the 1 year. If you  haven't looked at the property and you haven't  

figured out what you're going to do with it  when you get it, you better do that before you  

bid because now you're going to be in trouble. How  are you going to sell this property? In other words,  

you need to know what you're going to do with that  property. Don't buy one unless you have a plan to  

sell it and know how much you're going to sell it  for. I bet you're worried about competition. Don't  

worry about it. Why? There's always going to be  too many tax liens and too many tax deeds. Now, I'm not  

implying that there isn't competitors. I'm going  to teach you how to handle competitors and I'll  

start that process right now. For example, if you  know what you're going to sell the property for  

and you figure that out, you'll stop bidding where  it's going to be profitable for you. You won't bid  

too high. You don't want to go to an auction like  80 percent of the people do. They show up at auctions,  

they have no training, they have no idea what  they're going to sell a property for, and they're  

just there for bidding and they want to try to  win the auction. Let them win the auction. You're  

worried about competition, you won't get a property  every time, but there'll be some auctions you'll  

get 3 or 4. Now, my professional investors  do this online. You need to be very careful online.  

Anybody can go online. It's a bonanza for people  that don't know what they're doing. They think  

they're going to get rich by Friday afternoon.  I'm here to tell you, this is a very systematic  

way to make money. I've taught people how to make  money for well over 25 years. If you want to do  

this, you need to learn a step-by-step process. Yes,  I'm in the business of doing that but ,don't worry  

about competitors. If you get beat, so what? There's  always going to be another auction. but let me tell  

you how big a business this is. We're talking in  the billions. How can I say such a thing? There's 5  

thousand tax auctions every single year. Now, let me put  it in perspective. Every state is allowed to have  

auctions. Every county within the state is allowed  to have auctions, every municipality. These are all  

taxing jurisdictions. So, there's over 3,000 county  auctions, there's over 1,400 municipal auctions  

and many of those auctions the state is allowed  to have multiple auctions. For example, they might  

have an auction in your county, but they didn't  get everything sold so they wait 30 or 60 days  

and they'll have another auction. And the people  that went to the auction will be the only ones  

that know about it. So, some of these there's very  little competition and if you show up in a room  

and there's 400 people in there, you think you  won't get something but I'll tell you what  

I've learned by going to auctions for 25 years.  I've learned that 80 percent of the people are visiting  

with their friends and showing off. 20 percent will  be bidders. So, 400 people, you're going to  

have 80 to 100 bidders maximum. And most of  those will absolutely be out of the business  

at 10,000 dollars. If you're bidding on the bigger  properties so that you can make big money, you're  

gonna find it's gonna be down to 1 or 2 people  in the room every time. Now, that's my experience.  

I've been doing this for 30 years. I started as  investor, I'm still an investor. I don't get every  

property but I don't want every property. In some  county auctions, there'll be 5 properties you  

want. So, we're going to prepare you for that so you  can be an investor. You want to make 25, 50 or 100  

thousand dollars? We can show you how to do that. We do it on a  regular basis. 64 percent of my clients are women. Why are  

they doing so well? I'll tell you why they do well.  They do it it's told. We tell them, "Read the book.  

Watch the videos. Come to the class. Have a coach."  If you'll do all those things, we can have you  

making 25, 50 and 100 thousand dollars, but  you need to get started. Where will you start? How  

about if I just give you a 1 hour quick start  video. Learn what you want to learn from there and  

then be sure and come on these calls. The only way  you're going to get it is to be sure and register, make  

sure one of the listeners and watchers and you'll  be able to be successful. Okay, all the details  

that you need are just below me so go ahead and  get registered and watch that video. It's free.