New Tennessee law lets tax buyer take property sooner

Tennessee legislature approves law to let tax auction buyer take possession of property in less time

MEMPHIS, TN - People investing tax sales in Memphis, TN, are now able to take possession of property they buy at auction in as little as 30 days.

The change to the state law came at the request of Shelby County and Memphis officials as a way to fight urban blight in the Home of the Blues. The new law lets a tax buyer take “vacant and abandoned” property in as few as 30 days. The Volunteer State previously gave property owners a year to redeem the past due taxes and keep their property.

“This new law is going to a boon to Memphis to be sure,” said Ted Thomas, an international expert on property tax auctions. “City and County officials have been trying for years to get some properties cleaned up. Now they have another tool to that.”

People who invest in property tax sales are also going to win big on this one.

“Thirty days v. 365 days. A month v. 12 months, That is a major difference. People who buy these properties at a tax sale don’t have to wait a whole year any more. Thirty days and they can take the property,” Mr. Thomas said. “That means they turn a profit that much sooner. They can start renovating or list the property for sale in 1/12th the time it used to take.”

"With one-year right of redemption, you've got a neglected piece of property that sits another year with a leaky roof, another year with deteriorating paint, open windows, open to causal entry, many are burned. There's going to be a tremendous ripple effect,” said Trustee David Lenoir told the Commercial Appeal.

Mr. Thomas was equally quick to point out these properties are probably not the best Memphis has to offer. Abandoned properties can come with problems.

“If you intend to invest in these properties, do you homework. Get online and look at the properties with a street view program,” he said. “Pay attention to what you see.”

This does not mean the properties are a bad buy. Sometimes the buyer has to look at the land the house sits on. That could be worth much more than the house. A lot of companies will demolish a home just for the salvage rights, Mr. Thomas said.

“If the house isn’t worth saving, get someone to flatten it and haul it off. Now you’re left with an improved lot. You can sell it to a developer or build something there yourself,” he said

For more information about tax sale investing, visit www.TedThomas.com.

ABOUT TED THOMAS - Located in Merritt Island, FL, Ted Thomas is a noted international expert on tax sales. He conducts seminars about how to buy such property and is also an investor. His website offers extensive free information to people interested in this investment field.

Media Contact:

Ted Thomas
info@tedthomas.com
www.TedThomas.com
321-449-0040