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If you're looking to invest in real estate and build a portfolio, you may want to consider bidding on a delinquent tax sale. The process can sometimes be complicated, but by taking the time to do the necessary research, you may just find yourself with an exciting investment opportunity. A delinquent tax sale occurs when a town or city recaptures unpaid debt that has been levied on several properties located in the area. Often, these debts can include outstanding utility bills and property taxes. While the purpose of the sale is to recoup unpaid debts for the city, is it the process for any person to bid on property and become the owner. This happens when the original owner is unable to make the necessary arrangements to pay off the debt. First, you'll need to find properties that will be auctioned in the delinquent tax sale. Call your local treasurer's office and ask about any upcoming tax sales, and make sure you get the exact time and location. See if you can obtain a list of the properties that are going to be auctioned; sometimes the list will be available digitally. Track down your town's government website look for anything about property sales and see if they have any documentation about rules and regulations, as well. Another helpful alternative is checking the local newspaper. There is usually a designated section in the paper that will list the upcoming auctions. Before bidding, take the time to do the proper amount of in-person preparation. You should make a site visit to the property you're interested in before the sale. You don't want to find yourself bidding on a vacant lot instead of a property with actual residential structures. Even though you may not be allowed to personally inspect a property before the time of sale, you may want to talk to neighbors and ask for their evaluation of the property condition. Finally, go to your city's department of licenses and see if there are any code violations with the property. Remember, once you own the property, it will be your duty to invest money into fixing any violations of city code. When bidding on a delinquent tax sale, always keep in mind that you won't get the rights to the property immediately. Learn how long the original owner will have to repay their outstanding debts. Each city has different rules for property owners, so take the time to read and get educated. If you do have to make a payment at the day of the sale, keep in mind that most cities will only accept cash, money orders or bank checks. Make sure you take the day before to visit the bank and sort out your finances before making your next real estate investment. Purchasing property at a delinquent tax sale could be a great option for you. Visit http://www.civicsource.com to find out more.
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