California Tax Lien How To Obtain A Tax Deed
"Open up that Golden Gate" goes the old song. Well, in many ways, California is definitely a land of golden opportunity. In recent years, what with the spike in the value of real estate, California has posted some of the biggest increases in land value. This has resulted in many people looking for ways to cash in on that market. One of those ways: tax liens. Or, in the case of California: a tax deed.
The strange thing is, while all of the fifty-eight counties in the state have rules that permit the sale of tax deeds, none of them have actually carried out any sales. Still, if you are trying to find a way to invest in them, there are ways of obtaining one (or more). The first step: do a little homework, and find a valuable parcel with a tax deed within your price range. When you take into account the incredible value of just the land, almost any lot can yield a decent return on your investment.
Now, you might wonder: if sales are not conducted, if you have to hunt for them, what's the big attraction? How about an eighteen percent interest rate? The state ranks as one of the highest in the interest earned on a tax lien (deed).
Also, as stated before, California's land values are positively stratospheric. While the waiting time for defaults is three years, which means you are not going to get a quick return on your investment, it still holds the potential for a very good profit. So, how do you get a tax deed? Step one: look over the counties and find one (or more) that you are interested in. Next, contact the Registrars in those counties and find out what properties have tax deeds available. Or, an even better way: try doing a search on the Internet first and look for any real estate parcels that pique your interest. Each county has their own rules covering how you obtain a tax deed. Then, once you've settled on a property, speak to the Registrar in that county and get the full information on what you need to do. In some cases, you can obtain a piece of property for as little as only the back delinquent property taxes, the penalties, the interest, and the foreclosure costs. By comparison to the value of the parcel, it is practically pennies on the dollar. Quite the good return on an investment. In addition, California law is rather unique. Once you have completed the foreclosure process, you get clear title to the land, totally free of any and all encumbrances of any type. It'll take time; it'll take work and effort, and an outlay of money. But, the potential payoff can be considerable.
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