At a time when the economy is in sore shape and the real estate market has seen better days, it is only natural that investors would look for new ways to profit from the real estate. One such way is buying up tax deed properties at substantially reduced rates, with the prospect of turning around and selling the home at market value. This can be an extraordinarily profitable endeavor, particularly for those people who are in the know when it comes to tax sales. Unfortunately, the road to riches is paved with more than just gold. In order to move forward, you’ll need to go through a quiet title action, which can be costly and delay maximizing your investment.
One of the primary disadvantages of exploring tax deed investment is the myriad of time-wasting obstacles that stand in your way. In addition to waiting out any redemption period required by law, or market conditions, many investors face dealing with a slow and arduous court action in order to be able to resell the property for maximum profit.
As part of being able to take over a tax deed property and purchase title insurance, you’ll have to go through a quiet title action. This involves initiating a court action that mandates all other claims to the title be silenced and gives you exclusive rights as the property owner. Unfortunately, this process can take anywhere from six months to a year or even longer. In the meantime, your money will be tied up in an investment that you can do absolutely nothing with. This frustration and lag time leads many to abandon their hopes of finding a profitable niche in the real estate industry, moving on to a different type of investment. This is unfortunate because there is certainly money to be made.
Of course, what no one will tell you is that there are viable alternatives to the quiet title process. Some companies advocate tax title services, which can help investors bypass the lengthy court process while still achieving the same effects. These services can ensure that no one else lays claim to your property and they will help you free up your investment in a matter of weeks, instead of months. For anyone who has grave concerns about having their money tied up for nearly a year while the creaky wheels of the court system struggle to turn, this is a much-needed alternative. If you’re interested in exploring it, seek out a company that specializes in helping investors avoid the quiet title action process.