Investing 101: TRANSFORMING TAX FORECLOSURES TO POCKET GAINS- PART 2
In the last post I had just given an overview of what a person can do to invest with less and all dealing with tax foreclosures. In this post I will explain a little more detail on how you can invest in these tax foreclosure sales with just a few hundred dollars.
Tax Foreclosure Sales (Also called Tax Delinquent or Repository Sales) happen in nearly every state in the USA though for this lesson I will only focus on two states; Arkansas and Oklahoma.
ARKANSAS
Arkansas is a relative "easy" state to deal in tax foreclosures because they are going on nearly all the time and for every county in the state. It is good to do some due diligence on your prospective buys because sometimes you are buying a nonexistent parcel of land (it's a headache to redeem from state but it does happen!).
WHAT TO DO (ANY STATE):
1. SAVE between $500-$1,500 to use as seed #money.
2. Then get a state map & key attractions map (free usually from conservation areas or visitor centers for any state). KEEP these for research & guide materials when making your investing decisions.
3. Next you will need to research the counties in which you would like to invest in, check the economy of the area, job potentials, unemployment rate, & crime rate. Low employment & high crime means you will most likely get a house that is stripped of copper wire or damaged in some way (meth lab anyone?)
4. Once you have decided on a county (or several) then check the sales lists for Arkansas, what auctions are coming up for those counties and if you happen to miss those auctions then check the post auction sales lists to see what is left over. Often there are some missed goodies you can nab for little to nothing in an initial investment.
5.Investigate the parcel before you buy, this involves checking with the county assessor, clerk or recorder to get info on the past deeds associated with the parcel to define the legal more than what is shown on the state foreclosure enlist because they're usually very short with no definition.
6. Call the State Lands office to make sure the parcel is not a mistake and is legit. Hey, they make mistakes too. But, you don't want to pay for that mistake!
7.Request the forms to buy the parcel(s) and send it off to the lands office for approval, you will know in 2-3 weeks if the offer is accepted and you will get a Limited Warranty Deed from State within 30-60 days. With that in hand, you can sell it and transfer the deed to the buyer. Or, keep it. Just remember, you will have to pay property taxes!
Part 3 to come soon, thanks for the UpVote & follow me for more! #money #moneymatters #howto #diy #investing