In this video we discuss the three major benefits behind why tax sales exist!

Transcript:

Hey there! It’s Casey Denman here with TaxSaleAcademy.com. As a fairly well-known investor, I get a lot of tax sale questions from people that aren’t in the business. And there’s one question that just kind of downright offends me. People say, “Why do you invest in tax sale properties? Aren’t you taking advantage of people in their deepest, darkest hour when they can’t afford to pay their real property taxes?”

And that’s just a load of garbage and that’s the reason I did this video. In this video, we’ll be talking about what tax sales accomplish. First and foremost, we have to remember here that the people that are losing their property to tax sale foreclosure have not paid their taxes in 2, 3, 4, even 5 years in some states. They receive notice after notice through regular mail and through certified mail, telling them they’re going to lose their property. In some states, as a matter of fact, they’ve even had the notice posted on their doorstep or on the property if it’s vacant. So it’s not like they don’t know what’s going on.

They’ve also had opportunity after opportunity to work out some sort of payment arrangement with the county most of the time. They’ve also had the chance to borrow money from friends or family, put it on credit cards, get bank loans. They have all sorts of solutions to their problem, yet they failed to do any of them.

So, when it comes to tax sales, they accomplish 3 things for the most part. Number 1, they control blight. For lack of a better term, they just control “ugliness.” If somebody has failed to pay the taxes on their property, you can guarantee they have probably failed to mow that property. They probably failed to patch any broken windows and just take care of that property.

I’ve actually seen properties in some of the depressed areas of the country where you have tax sale property next to a tax sale property next to a tax sale property, and I guarantee you those are probably some of the ugliest streets in America because those people that have failed to pay their property taxes have also failed to maintain those houses.

Now, the accomplishment number 2 that it has is it earns money from the tax sale auction proceeds. What this means is when you sell a piece of property at tax sale auction, the county makes money off of it. You might sell a house, for instance, for $1,000 or $5,000 or whatever it may be. That $1,000 or $5,000 will go to the county, and the county will receive that money basically to reimburse them for covering the taxes that that person failed to pay.

It’s basically back-paying for all the services that that tax money should have paid for. We’re talking stuff such as fire, rescue, police, schools, libraries, infrastructure and permits. All sorts of things that a lot of people take for granted. So the proceeds from the auction will go to pay for that stuff that the property taxes should have paid for in the first place.

And accomplishment number 3, and most importantly and the primary reason for tax sales, is it returns the property to the tax roll as a tax revenue-producing property. And what this means is every year, once somebody buys that property at tax sale, every year, that person will pay taxes on that property again to help pay for the necessities that the government provides. So the idea here is to put that property back on the tax roll to a responsible taxpayer. To somebody that’s going to pay for those taxes year after year so that government can continue to operate as it should.

So, these are the 3 main things that tax sales accomplish. I hope you enjoyed this video. If you’d like more information about the very lucrative tax sale business, head on over to my website at TaxSaleAcademy.com. And you can do that by clicking the blue link right here next to my head. Again, it will take you to TaxSaleAcademy.com. And while you’re there, download your free copy of my e-book, The Tax Sale Blueprint.

Have a great day, folks! Take care! Bye-bye.