How To Buy Tax Sale Properties: A Canadian Guide
By Beverly Browne
Chapter 1 – Complimentary
1. WHY A BOOK ABOUT TAX SALE PROPERTIES?
For decades, many people have been enticed by the idea of real estate investmentand the attractive returns that property ownership can offer. Some people dabblein real estate as a hobby – arguably an expensive one. Others take on this formof investment as a serious business, through which they hope to gain financial independence.
The typical working- or middle-class individual generally thinks of buying real estate only for one or two purposes. First, you buy a house to live in. That’s the great North American dream. (Actually, it’s more likely a dream of humanity). Next, people drawn to real estate think of buying a rental property – something to generate extra income to help pay for their children’s education, or for their retirement. In this way, they become landlords.
Traditionally, people buy real estate with the assistance of a real estate agent, or by looking through advertising. Most of us don’t have ready cash for such a large purchase, so we must qualify for financing – and so begins the buying process!
As small investors gain access to more knowledge, however, they discover that there are other non-traditional ways to buy properties – which is where tax sales come in.
Acquiring real estate through tax sales can save you an estimated 30-50 percent off the retail price. Some less conservative industry experts have said you can buy these properties for 10% of market value in certain parts of North America. But even at the conservative estimate of 30-50% below retail, you can see there are great savings to be had.
Three important facts about tax sales:
- You must do adequate research on your intended purchase to avoid errors that end up causing you grief. Before you make your first bid, it’s wise to select some properties and simply attend the bidding for educational purposes. Doing so will help you better understand the process, and you might learn first-hand how to avoid mistakes in the application. This practical exercise will prove to be a relatively inexpensive lesson.
- If you’re dabbling in tax sales, you might be looking to buy a property that someone, or some family, has lost because of hardship. Perhaps there has been a severe illness, death, job loss or divorce that has led them down this difficult path. While it’s good to be aware of this fact, it might cause you to feel some guilt about profiting from someone’s downfall. But you’ll need to come to terms with the reality that the sale will take place whether or not you’re a prospective buyer. Someone other than the previous or current owner is going to be the new owner.
- On the other side of the coin, we’ve seen some tax sales where family members seemingly live in the very community where the property is being sold. Had those members been interested in holding on to the home, surely they would have done what was needed to prevent it from going to tax sale? In those cases one can only assume that the property wasn’t important
enough to them.
These are thoughts that should give you cause to reflect on your own feelings towards any ethical issues surrounding such auctions. Once you’ve done that, the rest of this book provides the nuts and bolts, should you want to acquire real estate through these types of sale.
>>> Buying a tax sale property is a non-traditional way to acquire real estate.
>>> You’ll need to do more research for a tax sale than you normally do for a traditional purchase.
>>> When a property goes to tax sale, unless the existing owner is able to pay up
the tax arrears, someone will become the new owner.
This tax sale book was written primarily for average people
who want to invest in real estate but who lack the resources normally required.
However, both rich and poor people will benefit from the facts in the book.
If you found Chapter 1 interesting, you can learn much much more, like……
* How does it all work? – Chapter 3
* Where are tax sales? – Chapter 6
* Summary snapshot of both the tender and auction systems – Chapter 8
* The Sizzle – Finding information on upcoming sales – Chapter 11
* Examples of what actual properties went for – Chapter 14
Even though the contents of ‘How to Buy Tax Sale Properties’ lays a foundation for tax sales across Canada,for people interested in American tax sales, we have included one chapter specifically on listings in Miami, Florida.
If you’re serious about learning the tax sale process, this book will prove to be a great tool. And if you want to fast-track your experience, a hands-on workshop is also offered.
To order the e-book, click here.
To order the hard copy, click here, or read more at Amazon.ca