Redemption Deed Training Questions and Answers
What is a Redemption Deed?
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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Live Auctions
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Online Auctions
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Over the Counter
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Secondary Market
What kind of properties should I target?
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Single Family Homes
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Condos
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Mobile Homes/Land
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Commercial Properties
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Commercial Lots
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Residential Lots
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Raw Land
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Vacation/Mountain
What kind of properties should I avoid?
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Useless land
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Irregular building lots
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Land with no value
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Property with Easements
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Commercial land with environmental issues
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IRS or other Governmental liens
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Small strips of Land
What is the best way to avoid making a big mistake with Redemption Deeds?
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.