Ohio’s tax sale system offers a unique blend of tax deeds and tax liens, providing investors with diverse opportunities. Whether you’re seeking properties at steep discounts or earning significant returns through tax lien certificates, Ohio’s hybrid tax sale approach delivers substantial advantages. Here’s everything you need to know about how Ohio tax sales work and why you should pay attention to this lucrative investment strategy.
Overview of Ohio Tax Sales
Ohio is a hybrid state that offers tax lien certificates and tax deeds. Here’s a breakdown of what you need to know:
Tax Sale Type: Hybrid – Ohio offers both tax liens and tax deeds.
Bidding Process: The bidding process typically involves paying a premium over the base amount for tax deed and a bid-down method for tax liens
Sale Frequency: These sales are conducted annually throughout the year, depending on the county.
Interest Rate/Penalty: The interest rate for tax liens in Ohio is up to 18%, but this can be bid down during the auction process.
Redemption Period: Tax liens have a one-year redemption period, allowing the property owner to pay back taxes and interest to retain their property.
Online Auctions: Ohio does not currently conduct online tax lien or tax deed auctions.
Over-the-counter Sales: Over-the-counter purchases are not available in Ohio.
Relevant Statute: Ohio Revised Code Section 5721.30 governs these sales.
Unique Features of Ohio Tax Sales
Ohio’s tax sale system has some distinctive features that can be beneficial to investors:
Bulk Tax Lien Sales: In some Ohio counties, tax liens are sold in bulk rather than individually. This is particularly common in more populous areas. Bulk sales allow investors to purchase a large portfolio of liens at once, potentially yielding significant returns. However, this approach requires substantial capital and due diligence, as evaluating each property individually may not be feasible.
Tax Deed Sales via Sheriff’s Sales: Unlike many states that hold separate tax deed auctions, Ohio often integrates tax deed sales into county Sheriff’s Sales. These sales typically involve properties that have defaulted on taxes and may also include mortgage foreclosures. This unique approach provides a broader range of opportunities for real estate investors.
Delinquent Payment Plans: Ohio law allows property owners to enter into payment plans to pay off delinquent taxes. This can reduce the risk of foreclosure and offers a pathway for owners to retain their properties, which might affect the redemption rate of tax liens.
Why Choose to Invest in Ohio Tax Sales?
Population: Ohio is the 7th most populous state in the U.S., providing a large market for real estate investors.
Economic Significance: Ohio’s economy is diverse, with strong sectors in manufacturing, finance, and agriculture, which support a robust real estate market.
Historical Tidbit: Ohio has a long history of property tax laws dating back to its statehood in 1803, reflecting its deep-rooted systems in managing land and property.
Why Ohio Is Ideal for Tax Lien/Deed Investors
Ohio’s tax sales present a unique mix of high returns and manageable risks. The state’s large population and varied economic sectors create a stable environment for real estate investments. Additionally, the hybrid system offers flexibility, whether you’re interested in purchasing tax liens or acquiring properties through tax deed sales.
High Returns: With interest rates up to 18%, Ohio’s tax liens can offer significant returns compared to other investment types.
Diverse Opportunities: The integration of tax deed sales with Sheriff’s Sales means investors have access to a wide range of properties, from residential homes to commercial spaces.
Legal Protection: Ohio’s detailed statutory framework ensures transparency and fairness in the tax sale process, safeguarding investor interests.
Pro Tips for Investing in Ohio Tax Sales
Thorough Due Diligence: Always research the properties you’re interested in. This includes checking for any outstanding liens, property condition, and market value.
Understand the Auction Process: Each county in Ohio may have different procedures and rules. Make sure you’re familiar with the specifics before participating in an auction.
Prepare for Bulk Purchases: If you’re considering bulk tax lien purchases, ensure you have the capital and resources to manage a large portfolio of properties.
Q: What is a tax lien certificate? A: A tax lien certificate is a legal claim on a property for unpaid property taxes. The investor who buys the lien earns interest on the unpaid taxes.
Q: How does the redemption period work in Ohio? A: After a tax lien is sold, the property owner has one year to pay the overdue taxes plus interest. If they fail to do so, the lien holder can initiate foreclosure proceedings.
Q: Can I participate in Ohio tax sales online? A: No, Ohio currently does not offer online tax lien or tax deed auctions. The county conducts all sales in person.
Q: Do bulk tax lien purchases come with any risks? A: Yes, bulk purchases can be risky due to the difficulty in evaluating each property individually. Some properties may be in poor condition or located in less desirable areas, which could impact your investment return.
Ready to dive into Ohio’s tax lien and deed investing opportunities? Start by conducting thorough research and exploring available resources. For personalized guidance, book a consultation with Dustin Hahn today!
Sign up or log in to view the full content.
Join Us
Learn how to get 18-36% returns on your investment and buy property for as little as $500 with tax lien and tax deeds.
Lien Sales Annually Oct – Nov. Deed Sales Are Held on a Needed Basis and Only on Properties That Were Not Sold at Lien Sale and Were Held by the County for 18 Months
10% Penalty if Redeemed in 1st 6 Months, 15% Penalty if Redeemed in Months 6-12, but Only on the Taxes and Fees Not the Overbid. Overbid Amount Receives 5% Interest.
Redemption Period:
1 Year if Sold at County Sale, Liens Not Sold at County Sale Are Certified to Commissioner and Sold in “Commissioner’s Certificate Sale” With 120 Day Redemption Period
Online Auction:
Yes
Over the Counter:
No but There Is a Second Auction Called a Commissioners Certificate Auction With a Shorter Redemption Period of 120 Days
25% Penalty Per 6 Months for Non Homestead or Special Land Use Properties. If 2 Yr Redemption Period Applies 25% for 1st Year and 50% Penalty for 2nd Year
Redemption Period:
6 Months for Most Properties. 2 Years for Homestead and Special Land Use Properties
Online Auction:
The Vast Majority No, but in 2019, Two Counties (Victoria & Orange)
“Upset Sale” First With Premium Bidding Which Does Not Extinguish Other Liens, Followed by “Judicial Sale” Where All Liens With the Exception of Irs Liens Are Extinguished
Frequency:
Annually Throughout the Year. Upset Sales Typically Held in the Fall. Judicial Sale Typically in the Spring but Could Be Anytime After the Upset Sale.
Interest Rate / Penalty:
N/A
Redemption Period:
N/A
Online Auction:
Very Few
Over the Counter:
Yes Through “Repository” List With County Acceptance
Ohio Hybrid Tax: Up to 90% Off Properties, 18% ROI with Tax Liens
How Ohio Tax Sales Works and Why You Should Pay Attention
Sale Details
Ohio Hybrid Tax — Liens: Varies
Deeds: Monthly
Redemption
1 Year for tax liens.
Bid Procedure
Premium on Tax Deeds
Bid Down Method for Tax Liens
Interest Rate
18% on Liens
Number of Counties: 88
Useful Links
Franklin County Law Library Guide on Tax Certificates
DannLaw’s Explanation of the Ohio Sheriff Sale Eviction Process
Ohio’s tax sale system offers a unique blend of tax deeds and tax liens, providing investors with diverse opportunities. Whether you’re seeking properties at steep discounts or earning significant returns through tax lien certificates, Ohio’s hybrid tax sale approach delivers substantial advantages. Here’s everything you need to know about how Ohio tax sales work and why you should pay attention to this lucrative investment strategy.
Overview of Ohio Tax Sales
Ohio is a hybrid state that offers tax lien certificates and tax deeds. Here’s a breakdown of what you need to know:
Tax Sale Type: Hybrid – Ohio offers both tax liens and tax deeds.
Bidding Process: The bidding process typically involves paying a premium over the base amount for tax deed and a bid-down method for tax liens
Sale Frequency: These sales are conducted annually throughout the year, depending on the county.
Interest Rate/Penalty: The interest rate for tax liens in Ohio is up to 18%, but this can be bid down during the auction process.
Redemption Period: Tax liens have a one-year redemption period, allowing the property owner to pay back taxes and interest to retain their property.
Online Auctions: Ohio does not currently conduct online tax lien or tax deed auctions.
Over-the-counter Sales: Over-the-counter purchases are not available in Ohio.
Relevant Statute: Ohio Revised Code Section 5721.30 governs these sales.
Unique Features of Ohio Tax Sales
Ohio’s tax sale system has some distinctive features that can be beneficial to investors:
Bulk Tax Lien Sales: In some Ohio counties, tax liens are sold in bulk rather than individually. This is particularly common in more populous areas. Bulk sales allow investors to purchase a large portfolio of liens at once, potentially yielding significant returns. However, this approach requires substantial capital and due diligence, as evaluating each property individually may not be feasible.
Tax Deed Sales via Sheriff’s Sales: Unlike many states that hold separate tax deed auctions, Ohio often integrates tax deed sales into county Sheriff’s Sales. These sales typically involve properties that have defaulted on taxes and may also include mortgage foreclosures. This unique approach provides a broader range of opportunities for real estate investors.
Delinquent Payment Plans: Ohio law allows property owners to enter into payment plans to pay off delinquent taxes. This can reduce the risk of foreclosure and offers a pathway for owners to retain their properties, which might affect the redemption rate of tax liens.
Why Choose to Invest in Ohio Tax Sales?
Population: Ohio is the 7th most populous state in the U.S., providing a large market for real estate investors.
Economic Significance: Ohio’s economy is diverse, with strong sectors in manufacturing, finance, and agriculture, which support a robust real estate market.
Historical Tidbit: Ohio has a long history of property tax laws dating back to its statehood in 1803, reflecting its deep-rooted systems in managing land and property.
Why Ohio Is Ideal for Tax Lien/Deed Investors
Ohio’s tax sales present a unique mix of high returns and manageable risks. The state’s large population and varied economic sectors create a stable environment for real estate investments. Additionally, the hybrid system offers flexibility, whether you’re interested in purchasing tax liens or acquiring properties through tax deed sales.
High Returns: With interest rates up to 18%, Ohio’s tax liens can offer significant returns compared to other investment types.
Diverse Opportunities: The integration of tax deed sales with Sheriff’s Sales means investors have access to a wide range of properties, from residential homes to commercial spaces.
Legal Protection: Ohio’s detailed statutory framework ensures transparency and fairness in the tax sale process, safeguarding investor interests.
Pro Tips for Investing in Ohio Tax Sales
Thorough Due Diligence: Always research the properties you’re interested in. This includes checking for any outstanding liens, property condition, and market value.
Understand the Auction Process: Each county in Ohio may have different procedures and rules. Make sure you’re familiar with the specifics before participating in an auction.
Prepare for Bulk Purchases: If you’re considering bulk tax lien purchases, ensure you have the capital and resources to manage a large portfolio of properties.
Ohio Tax Sales Frequently Asked Questions (FAQs)
Q: What is a tax lien certificate?
A: A tax lien certificate is a legal claim on a property for unpaid property taxes. The investor who buys the lien earns interest on the unpaid taxes.
Q: How does the redemption period work in Ohio?
A: After a tax lien is sold, the property owner has one year to pay the overdue taxes plus interest. If they fail to do so, the lien holder can initiate foreclosure proceedings.
Q: Can I participate in Ohio tax sales online?
A: No, Ohio currently does not offer online tax lien or tax deed auctions. The county conducts all sales in person.
Q: Do bulk tax lien purchases come with any risks?
A: Yes, bulk purchases can be risky due to the difficulty in evaluating each property individually. Some properties may be in poor condition or located in less desirable areas, which could impact your investment return.
Useful Links
Franklin County Law Library Guide on Tax Certificates
DannLaw’s Explanation of the Ohio Sheriff Sale Eviction Process
Ready to dive into Ohio’s tax lien and deed investing opportunities? Start by conducting thorough research and exploring available resources. For personalized guidance, book a consultation with Dustin Hahn today!
Sign up or log in to view the full content.
Join Us
Learn how to get 18-36% returns on your investment and buy property for as little as $500 with tax lien and tax deeds.
Articles