REAL ESTATE INVESTORS, IF YOU COULD BUY SINGLE FAMILY HOMES WITH NO MORTGAGE... TED THOMAS REAL ESTATE INVESTORS, IF YOU COULD BUY SINGLE FAMILY HOMES WITH NO MORTGAGE FOR 20 CENTS ON THE DOLLAR, HOW MANY WOULD YOU BUY? By Ted Thomas H ere’s the secrets of a little known but highly lucrative business of purchasing tax defaulted properties at auction for 1020 cents on the dollar States is owned by the federal government. The government allows you the right to own the property as long as you pay taxes on it. Many years ago, the U.S. Congress enacted laws that allowed individual states to handle governmental duties and obligations at the local level. The states further designated counties to handle the property taxation part of those duties and obligations. When you pay property taxes to For many, the question is, what’s the difference the treasurer or between a tax lien certificate and a tax defaulted assessor's office, property (tax deed)? Before you begin investing, it is those funds are vital that you understand how a tax deed works, once used to pay for you know you can purchase taxdefaulted real estate for public pennies on the dollar but it's only profitable if you know police what you are getting when you bid. departments, and schools, and fire any number of other civic services. The local What is Tax Defaulted Property (Tax Deeds)? government that manages and operates these In a very basic sense, every piece of land in the United services is primarily funded by property taxes.