Are you thinking of getting started as a real estate investor? If you are, you need to be aware of a few things. Real estate investment is tricky, expensive, and — most importantly — risky.
But what if we were to tell you that there’s a low-capital and relatively low-risk entry point into the market? Enter tax deed investing.
With tax deed investing, you can break into the real estate market and make solid returns — even with minimal experience as an investor. Plus, you can start your journey anytime, and you do not need six-figure capital to get started.
Tax deed investing may just be the real estate opportunity you’re looking for. If you’re still on the fence, read on to learn three reasons why you should consider tax deed investing.
A Tax Sale Foreclosure and Tax Deed Investing in Frederick Is Relatively Low-risk
Many of the risks in real estate — or any form of investment, really — come from how transactions occur. More specifically, investments normally occur between the investor (you) and the market or another private party.
This dynamic places the investor at risk, because situations can change quickly with a private party and even quicker with the market.
In a tax deed investment, you’re not second-guessing the direction in which the winds of market forces blow, nor are you transacting with a private owner; you’re making the investment with your county.
This adds an element of certainty to tax deed investing that most other investments cannot provide.
Huge Returns for a Fraction of the Property’s Market Price
When you purchase a tax deed certificate, you’re essentially buying a property for a fraction of its value on the market if and when you are able to foreclose on the property. This means that you stand to make a profit after you sell the property.
The property you’ve bought at a tax sale auction accrues value with each year that passes. Hence, when you decide to sell it, it will be worth much more than what you bought it for.
In short, when you invest in a tax deed certificate, you get to buy low and sell high.
No Six-figure Capital? No Problem
Contrary to popular belief, you don’t need much capital to start investing in tax liens. All you need to ensure is that you can afford a bid premium.
If you can afford the bid premium, there is a good chance that you can pay for the tax certificate if nobody else bids. At the tax sale auction, you can have a tax deed certificate for as low as $3,000 (and sometimes lower!), depending on the bid premium and the property’s cash value.
Are You Ready to Participate in Tax Deed Investing? Call a Maryland Tax Sale Attorney
We would describe tax lien investment in three words — low-risk, high-return, and affordable. However, make no mistake: the perks of investing in tax deeds come with legal intricacies that many new investors miss.
If you’re new to tax lien investment, you need guidance. Call a Maryland tax sale attorney to get everything you want out of your property investment in Frederick County.
