Anyone hear of the John Beck guy? He claims that you can buy properties for pennies on the dollar through tax sales. Any thoughts?
He’s right, you can. At under $40, the course is certainly cheap enough to take a look at. Just don’t get caught up in the after sale marketing for high cost mentoring and expensive boot camps that will ensue.
Pennies on the dollar is a marketing term. Anytime you buy property less than market prices, it’s really pennies on the dollar. 20% below market value is 80 pennies on a dollar
epm1013,
Tax sale investing is a specialized niche wherein the investor is purchasing either a property tax lien or a tax certificate. If the property taxes are not paid, then the tax certificate can convert to a deed.
When you consider the amount of defaulted property taxes to the value of the assessed property, it really is “pennies on the dollar”. The owners will redeem most property of any value, so the tax lien investor usually just collects between 6% and 25% interest on his investment depending upon the state law.
Just so you know, the chances of actually receiving a property through a tax lien is VERY rare. In colorado for example - a TLC needs to be held for at least 3 years before you can acquire a property. In the county I live, NEVER has someone received a property free and clear by holding a tax lein on it - that’s not to say that it couldn’t happen.