Introduction to Over the Counter Tax Deeds
Tax deed investors don’t always find the best assets at an auction.
Instead, they can purchase over the counter tax deeds from the county without fighting other bidders.
Because counties usually have tax deeds that survived the auction or never went to auction, you can get them over the counter for a fixed price.
Investors may pass by certain tax deeds because they don’t fit their investment model, or because they lack the required finances for their bids, meaning the county retains the deed.
While some over the counter tax deeds may have severe problems preventing them from being profitable assets, plenty of the over the counter tax deed offerings have value for specific investment models.
Therefore, your success rate with these over the counter tax deeds will depend on your ability to research them thoroughly and assess how well they suit your business strategy.
Fortunately, Tax Sale Resources provides solutions to help you locate over the counter tax deeds before other investors and evaluate them according to your investing style.
We have over a decade in the business and provide information on over 200,000 tax deeds every year.
So, here’s the scoop on over the counter tax deeds.
Pros to Buying Over the Counter Tax Deeds
Over the counter tax deeds offer several advantages.
First, you don’t have to wait for the next auction to secure your investment.
Instead, you simply head to the county office after performing sufficient research about the property and purchase it.
In addition, no auction means no competition from other investors.
So, you don’t have to outbid other attendants at an auction. This benefit keeps prices low and prevents tax deeds from being taken from you by a last-minute bid.
Cons to Buying Over the Counter Tax Deeds
Over the counter tax deeds also come with one primary disadvantage: the reason investors passed on them during the auction.
Generally, investors refuse to purchase tax deeds for glaring issues.
For example, the home in question may have a cracked foundation, meaning you’d have to sink a ton of resources into the property to make it sellable.
As a result, buying over the counter deeds means sifting through hundreds of subpar choices to find a few properties that fit your investment model.
Hidden Risks to Over the Counter Tax Deeds
Over the counter tax deeds carry the same risks as those you buy at an auction. For instance, the prior owner may have neglected the property for years, allowing damage from pests and the elements to run rampant.
In addition, the deed may have title issues, and getting a redeemable deed doesn’t nullify these problems.
For instance, municipal penalties for uncut grass might spring up after you buy the property.
Remember, most over the counter tax deeds usually have more baggage than those at an auction.
Otherwise, investors wouldn’t have avoided them when they had a chance to bid on them.
As a result, due diligence is vital when considering over the counter tax deeds.
Over the Counter Tax Deed States
Any state with tax deed auctions has an over the counter process, even if the government gives it a different name.
For example, when counties in Alabama have tax deeds that don’t sell, they transfer them to the state’s Department of Revenue.
On the other hand, your state might have a list of lands, like in Florida (for more, check out our state directory).
Likewise, Arizona has its own conditions for over the counter tax deeds. Once the state has held an unsold lien for a specific period, the county turns it into a deed, which investors can purchase without going to an auction.
Remember, if you live in a tax deed state, asking your state or local government for over the counter liens might not lead you to the desired information.
The key is to know the right questions to ask, because every tax deed state has a process for deeds that don’t sell at auction.
Therefore, consulting with a tax deed attorney can help you understand the specifics of your location.
The Best Way to Find Over the Counter Tax Deed Lists
Finding over the counter tax deed lists can help you get the jump on newly available deeds from your municipality.
Because auctions aren’t part of the process, speed is essential when pursuing these investments.
So, while calling the county for information is an option, you can come up short.
On the other hand, Tax Sale Resources offers abundant research you can pull from at will.
We collect over the counter tax deed lists from municipalities throughout the United States and provide them in our online research platform.
This way, you can log in and download the relevant data for your area.
Steps-by-Step Guide to Buying Over the Counter Tax Deed Properties
Buying an over the counter tax deed can look different depending on your state.
However, the process also shares some qualities with acquiring deeds through an auction.
For example, you must understand your investing model.
This step means asking yourself what kinds of property you want, such as commercial versus residential.
Once you know the answer to this question, you can focus on the over the counter tax deeds that fall within your parameters.
The next step is researching the available tax deeds.
So, you’ll have to chase down the relevant county or state government officials for information, or you can use Tax Sale Resources Research platform to get the details on each tax deed on the list.
Remember, time is of the essence with these investments, so getting information today can help you clinch the deal before other investors thoroughly research the property.
Then, when you finish your due diligence, it’s time to buy the tax deeds that interests you.
This final step involves conducting the transaction with the government body that handles over the counter tax deeds in your state.
For instance, you might send payment online or close the deal in person with a check.
Frequently Asked Questions
What’s the difference between a typical tax deed and an over the counter tax deed?
A typical tax deed is one you bid on at an auction and experience competition from other bidding investors.
An over the counter tax deed means the deed has gone through the auction without being sold to a bidder.
This deed may not have gone at the auction because it has issues that don’t fit the typical investment model, or the winning bidder couldn’t finance their purchase.
Therefore, the county retains possession of the deed and sells it directly to an investor.
Do over the counter tax deeds have unusual problems?
over the counter tax deeds often but don’t always have unusual problems.
For example, a deed might fail to sell at auction because the title isn’t clear.
However, investors also occasionally are unable to finance their bid at the auction, meaning the county keeps the deed.
So, you might find over the counter tax deeds that fit your investment model because it has issues you specialize in fixing or because it was an excellent deal that fell through on the investor’s side.
Over the counter tax deeds can be profitable investments disguised as throwaway properties left over from an auction.
However, thorough research is vital for distinguishing between solid opportunities that fit your business model and properties riddled with difficulties.
As a result, getting your hands on reliable information for over the counter tax deeds is the key to making speedy, educated investing decisions.
Tax Sale Resources provides robust data on available tax deeds, can finance your business, and even act as your broker.
This way, you can make focused investments without worrying about securing financing.
So whether you’re a first-time investor or a seasoned pro looking to scale sustainably, partnering with Tax Sale Resources will help you make the most of the over the counter tax deed investing opportunity.