Friday, May 31st, 2013 by adminOne of our favourite places to buy tax deed certificates is in Texas. Why? Because Texas has one of the shortest redemption periods (6 months) with one of the highest interest penalty returns for investors (25%). Lets go a little bit deeper into this so we can clarify some points for you.
Texas is a hybrid lien/deed state which simply means that when you attend a tax sale in Texas and purchase a property at an auction you immediately receive the deed to the property and can begin to collect rent from day one. The former owner of the property has 6 months to pay you back what you purchased the property for at the auction + 25% interest OR if they fail to pay you this, you retain the deed to the property and now own it 100%.
Whats even better is that many times you dont have to wait the full 6 months to make the 25% on your investment. Often times the former property owner will pay you off alot sooner then the 6 months and you know what? Its still a 25% return no matter when they pay you in that 6 month redemption period be it 2 months, 2 weeks or 2 days after the auction.
Not bad eh?
In fact it gets much much better than that!
These are just some of the benefits of investing in Texas tax deeds and why we are investing tens of thousands of dollars ourselves every month at Tax Deed Auctions.
If you have any questions just make a comment and we would be happy to answer them for you.
See you at the top!
S.