Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Rapid Liquidation

The most common approach used by tax deed investors to cash in on the investment is simply selling at a wholesale price. While you could certainly list the property with a professional Realtor and try to get a retail sale, the time versus return equation might make that choice expensive. The holding costs, combined with tying up funds that could be used for other tax sale transactions, make a rapid liquidation the better play. Still, use a local Realtor to help you out—it’s worth it. But drastically discount the price to allow someone else to also make a little profit. It’ll go faster, and you’ll sleep better! Having $100 in your hands right now to reinvest is almost always going to be better than waiting three months and maybe getting $200 then.

CHIP TIP: Look for speed in selling—not maximizing profits!

Since you’ve acquired the property for so little, it would be highly unlikely that you would see a loss on a sale, but time is worth money, especially when it’s yours and it’s getting eaten up with marketing time and holding costs. Instead, think about pricing your property way below the market for a quick sale—it’s the smart thing to do.

Remember, price solves all problems. A piece of property will always sell at some price when exposed to a market, and at this point, you just want to move on to the next deal as quickly as possible.

You could even offer to let the previous owner buy back the property. A move like that would be a three-way win: the owner ...