Redemption Deed Training Questions and Answers

What is a Redemption Deed?

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A hybrid of both Tax Liens and Deeds. Redemption Deeds are Tax Deed that is sold with a Redemption Period attached to them. Redemption deeds have redemption periods that range from 2 months to 2 years. Redemption Deeds offer a penalty return instead of an interest rate return. In a state like Texas for example, if the deed redeems after 30 Days you will get a full 25% return on your money. In addition some ownership rights are extended to deed holders during the redemption period.

What are the 4 Ways I can buy Redemption Deeds?

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1. Live Auctions

2. Online Auctions

3. Over the Counter

4. Secondary Market

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What kind of properties should I target?

• Single Family Homes

• Condos

• Mobile Homes/Land

• Commercial Properties

• Commercial Lots

• Residential Lots

• Raw Land

• Vacation/Mountain

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What kind of properties should I avoid?

• Useless land

• Irregular building lots

• Land with no value

• Property with Easements

• Commercial land with environmental issues

• IRS or other Governmental liens

• Small strips of Land

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What is the best way to avoid making a big mistake with Redemption Deeds?

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Honestly its education. Redemption Deeds are a form of property Deed, so you need to research the property as if you intend to buy it. Because there is a good chance you will probably acquire it at the end of the redemption period. With Redemption Deeds you will need to understand the entire process to avoid making a mistake.