Transcript:
Today:
What’s the purpose of Tax Sales?
Well it’s actually two fold. We have to understand that as investors, the purpose of tax sales is NOT for us. It’s actually for the county.
Property owners pay taxes to the county to cover all sorts of vital services, such as police protection, fire protection, road construction and maintenance, educational services, parks, sidewalks, the list goes on and on. Without property taxes, these services do not exist.
When a property goes to a tax sale the winning bid amount helps to county recoup the delinquent taxes owed. And perhaps, more importantly, it also puts that property back into an active, tax revenue producing status once again so that they can rely on those funds to help meet their budgest, and subsequently to provide the services we all expect and use daily.
As you can see, as a tax sale investor we are not the primary beneficiary of this system, but we can reap the benefits of this system by investing in real estate at below market prices.
I’ll see you next time on our tax sale starter series. Take care.