OTC (Over the Counter) Tax Liens & Tax Deeds Properties

OTC properties: Those that were not sold at auction and are available directly from the county or state. This method allows investors to purchase properties without the competitive atmosphere of live auctions, often through online platforms or even from mobile devices. Essential resources for finding such properties include local newspapers and official county or state websites. The State of Alabama offers OTC tax liens and tax deeds which provides opportunities for investors to find properties that might have been overlooked during the auction process.

Opportunities in OTC (Over the Counter) Tax Sales in Alabama

For Beginning Investors: OTC tax sales in Alabama offer a unique entry point into real estate investing. These sales allow investors to purchase tax liens or tax deeds directly from the state, bypassing the competitive auction process. This can be particularly advantageous for beginners, as it provides a more straightforward and less intimidating way to acquire properties. The potential returns can be significant, especially if the property owner fails to redeem the property within the redemption period, allowing the investor to gain ownership at a lower cost.

For Seasoned Investors: Experienced investors can leverage OTC tax sales to diversify their portfolios and capitalize on undervalued properties. By purchasing tax liens or tax deeds that didn’t sell at auction, seasoned investors can often find properties with higher potential returns. Additionally, they can use their expertise to evaluate properties more effectively, identifying those with the best investment potential based on location, condition, and market trends.

Number of OTC Properties Available: The Alabama Department of Revenue holds over 20,000 tax certificates and tax deeds across the state that are available for purchase. These properties are listed on the Alabama Department of Revenue’s website, and investors can request price quotes and apply for purchases online.

Receive the Assignment or Tax Deed: Depending on how long the state has held the tax sale certificate, you will receive either an assignment of the certificate (if held less than three years) or a tax deed (if held over three years)

Research Thoroughly: Conduct thorough research on the property’s history, neighborhood, and market trends to make informed investment decisions.

Evaluate Potential Returns: Consider the potential returns on your investment, including interest and penalties if the property owner redeems the property, as well as the potential for gaining full ownership if they do not.

Stay Informed: Keep an eye on the Alabama Department of Revenue’s website for updates on new properties and changes in the OTC tax sale process. By following these steps and tips, you can take advantage of the lucrative opportunities available through OTC tax sales in Alabama. Good luck with your investments!

Summary: OTC tax sales in Alabama provide a valuable opportunity for both beginning and seasoned investors to find lucrative investment properties. By understanding the process and conducting thorough research, investors can make informed decisions and potentially achieve significant returns.

Disclaimer: Investing in tax liens, tax deeds and redeemable deeds involves inherent risks and complexities. The information provided here is for informational purposes only and should not be considered financial or legal advice.

By consulting these professionals, you can make informed decisions and mitigate risks associated with tax liens, tax deeds and redeemable deeds Investments.