In the article How to Use Public Records for Real Estate Investing Success, we talked about using tax records to help us find investment properties. We’ll take a deeper look at this strategy and point out some pitfalls that you should be aware of.
When looking at tax records, be aware that they are usually updated only once a year. The owner of the property that you’ve looked up the tax record information for may have sold this property to someone else, yet the tax records may still show the original owner as the owner and not the new true owner. Usually these tax records are updated on January 1st of each year.
Another detail to keep in mind is that the owner listed on the tax records may have inherited this property recently – especially if the previous owner has the same last name (likely to be of the same family). Look at the probate court records and check to see if there is an estate for the previous owner. The tax records may show an order of the probate court, but the deed may not yet be filed in the record room.
Taking a look at the public records is a great way to get an edge over beginner real estate investors. Of course you don’t have to look at the tax and public records for every single deal you’re thinking about making, but it is a great tool to have in your real estate investment toolbox. When I say toolbox, I mean that you should have a sundry of various investment techniques that you’ve learned from reading real estate blogs, investing forums, real estate books, audiobooks, and taking investment seminars. Even if you only learn one simple tactic from reading a blog post, for example, that one gold nugget of information could save you thousands, or make you thousands of dollars in your investments.
To find these public records you could either go to the courthouse (after a few times going to the courthouse you’ll get a good feel for how it’s like to search the public records) or just do your research online. I strongly suggest you download Mozilla Firefox and bookmark every government property search for the counties in your area. You’ll know it’s a government website because the website ends in the TLD .gov (TLD means Top Level Domain). For example, the South Florida Miami-Dade county tax record search hyperlink is this:
http://www.miamidade.gov/proptax/
The reason for becoming an expert at public record searches for properties is that you’ll be differentiating yourself from 80% of the real estate investors in your area. Real estate investors are a rare breed, so to be a part of the top 20% real estate investors in your area is quite an accomplishment! Of course, being a top investor takes way more than just looking at public records – but it’s an excellent way to find properties that the typical person doesn’t have access to. Think about all the abandoned property you come across in your travels. Think about the rental properties with absentee landlords. Think about those properties that would make excellent investments but it’s difficult to track down the homeowner. These are the situations were searching the public records will suit you exceedingly.
Besides finding the names and addresses of the actual owner of the property, public records can also help you find out other invaluable information. You can find out if there are any liens against a property. You can find out how long a person has owned a specific piece of property. You can find out how much someone paid for a property. This is very valuable information in order to make investment decisions! All in all, public records is an excellent way to pad your pockets with properties that other investors may consider hard-to-find, but to you these properties will a regular part of your investment strategy.
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