If you've researched the American real estate market, you may have come across the term "tax deed." Here's what it is and how it works.

What is the Tax Deed? 

Many American counties organize, even frequently, the so-called "Tax Deed auctions" where properties are auctioned off. Whoever wins the property gets it debt-free. After obtaining the property, the winner will also receive an unsecured title, the Tax Deed.

How does it work? 

Tax Deed auctions start from a base that depends on the back taxes and administrative costs incurred for the auction. We proceed through raises, each time raising the price by $100 up to the final figure. The highest bidder wins the auction and becomes the new owner: he is not burdened by any debt, mortgage, or tax and receives the Tax Deed. 100$ to the final digit.  The highest bidder wins the auction and becomes the new owner: he is not encumbered by any debt, mortgage or tax and receives the Tax Deed.

Is it worth it?

Buying a Tax Deed could be a first step to start investing in the US real estate market. The initial investment cost could be relatively small given the right opportunity and could generate large profits on resale as well. However, if you are not an expert in the sector, the risks could be great. This is why we advise you to rely on experts. A great deal of experience is required in this sector, you need to know which properties are valid and which are not and know how to estimate their real value.