Arnie Abramson, an expert in Tax Deeds in Texas, explains today how different states use Tax Liens while others use Tax Deeds.
Find out why it’s so important to know what type of state you’re in. Some are strictly Tax Lien states while others are Tax Deed states and how this affects your course of action.
Announcer: Welcome back to the FlipNerd.com REI classroom, where experts across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Host: I’m Arnie Abramson. I’m the CEO of the Texas Tax Sales Resource Group and we’re based in Texas. Today, I’m going to be your host for the REI classroom. We will be talking about tax liens and tax deeds and what the differences are.
Announcer: This REI classroom real estate lesson is sponsored by VirtualStaffNow.com
Host: Okay. Let’s get going. First, I think I ought to put on my FlipNerd glasses so you can see we’re all on the same team. Now I’m going to take them off so that I can go to work. A lot of people who look on the Internet about tax sales in various states find that there are a lot of gurus and there a lot of people out there, and they are talking about tax sales. And most of them, in almost all cases, are talking about tax lien states. You see, in the United States, about half of the states are what we call tax lien states and about half are called tax deed states.
Here is the difference. In a tax lien state, when the property is behind in taxes, what they sell at the auction is that amount owed for taxes. It’s a tax lien and people bid on that. Investors are going to bid on that the lowest interest rate that an investor will bid usually wins that bid. And that’s what they get is the debt that is owed.
In a tax deed state, it’s entirely different because there, what they’re selling is the property itself and bidding starts with the amount of taxes owed. So it’s a very different type of auction and you’ll find that most of the gurus that are talking about tax sales on the Internet are talking about tax lien states. As I said, about half of them are tax deed states, but about three states are tax deed states that have redemption with them. And that’ll be the subject of another session at the REI classroom on redemptions.
Texas is most different of all of them. And so that’s what are our expertise is. Our area is we were just talking about tax deed sales in Texas. If you have any other questions about it, feel free to look at our website www.txtaxsales.com and you can even email me at [email protected]
That’s all for today and I hope to see you next time.
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