How to Buy Properties at 40-90% Below Market Value with Los Angeles County, California Tax Deed Investing
Los Angeles County is the most populous county in the United States, with an estimated 9.7 million residents as of 2022. This large population makes it one of the prime markets for deed auctions. The robust economy, increasing population, and favourable climate make LA County an attractive spot for real estate investors. However, it’s also one of the most expensive markets.
One of the smartest ways to enter the LA real estate market is through a tax deed auction, where you can potentially acquire property ownership for a fraction of the market value.
The Opportunity of LA County Tax Deed Auctions
Every year, LA County auctions off properties that have defaulted on their taxes, providing a unique opportunity for investors. These tax sales help the county reclaim lost revenue, which is vital for funding public services.
The starting bid for these properties is set to cover the unpaid taxes, fees, and associated costs. Plus, these properties are typically free of mortgages or deed of trust loans, offering a clean slate in an otherwise pricey market. It’s a win-win for both you and the county.
Getting Started with LA County Tax Deed Auctions
So, how do you begin in LA County? It all starts with the Los Angeles Treasurer and Tax Collector’s website.
Here’s a step-by-step guide:
Visit the Los Angeles Treasurer and Tax Collector’s Website
Navigate to the “Auction Information” section.
Check the Schedule of Upcoming Auctions
This will direct you to the Bid for Assets auction site. Review the auction rules, register online, and submit a refundable deposit.
Read the Participation Guide
On the Bid for Assets auction site, read the “HOW TO PARTICIPATE IN COUNTY TAX SALES” section. Once registered, you’ll receive the auction list via email or direct download from the website.
Get the Auction List
The list of tax-delinquent properties becomes available a few weeks before the auction, usually scheduled in October. This is your crucial first step in preparing a winning bid.
Before participating, make sure to do thorough research by exploring the LA County Assessor Portal and the Bid for Assets site.
Frequently Asked Questions
What is a tax deed auction?
A tax deed auction is a public sale of properties that have defaulted on their taxes. The county sells these properties to recover the unpaid taxes.
How can I participate in the LA County tax deed auction?
You can participate by registering on the Los Angeles Treasurer and Tax Collector’s website and the Bid for Assets auction site. Follow the instructions provided for registration and deposit submission.
Are the properties free of mortgages?
Yes, properties sold at these auctions are typically free of mortgages or deed of trust loans, giving buyers a clean slate.
When do these auctions take place?
The auctions usually take place in October, with the auction list available a few weeks before the scheduled date.
Where can I find more information?
You can find more information on the Los Angeles Treasurer and Tax Collector’s website and the Bid for Assets auction site.
Auction FAQs
I would like to get notification about upcoming auctions in LA County. What do I need to do?
Subscribe to Auction Email Notification.
How can I obtain a list of properties scheduled for an auction?
You can review and print the list of “Properties Remaining for Sale” for a specific auction under the Schedule of Upcoming Auctions page.
What are known special conditions?
Special conditions such as contamination, easements, or Mello-Roos apply to certain properties. It’s important for buyers to do their due diligence as properties are sold as is, and the Treasurer and Tax Collector do not assume responsibility for the conditions, liens, environmental hazards, or any other special conditions.
I would like to bid on properties offered at an auction. Are there different bidding requirements for an in-person auction versus an online auction?
Yes, there are different bidding requirements for an in-person auction versus an online auction. Please review “Terms and Conditions” for a specific auction, under the Schedule of Upcoming Auctions page.
How do I find or see a property that I would like to bid on at an auction?
The Office of the Assessor provides property information, including maps that you can access at the Los Angeles County Office of the Assessor. Enter the property street number and street name, or the Assessor Identification Number, to find the property details. For properties without street addresses, the approximate geographic location can be determined using County Assessor Platt maps and GIS maps, also found on the Assessor’s website at the Los Angeles County Office of the Assessor. Only a property survey can determine the exact boundary lines of a property. Interested bidders must bear the expense and receive permission from the owner to access the property.
These sites are invaluable for digging deeper into your chosen property, from its exact location to boundary specifics. Conduct thorough due diligence, consult with experts, and get ready both financially and knowledge-wise for the auction.
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Get our free Tax Lien & Deed Mini-Course, or book a call with us to build a free customized Tax Lien & Deed investing plan. Save yourself years of trial and error. Get it here.
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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
Los Angeles County
How to Buy Properties at 40-90% Below Market Value with Los Angeles County, California Tax Deed Investing
Los Angeles County is the most populous county in the United States, with an estimated 9.7 million residents as of 2022. This large population makes it one of the prime markets for deed auctions. The robust economy, increasing population, and favourable climate make LA County an attractive spot for real estate investors. However, it’s also one of the most expensive markets.
One of the smartest ways to enter the LA real estate market is through a tax deed auction, where you can potentially acquire property ownership for a fraction of the market value.
The Opportunity of LA County Tax Deed Auctions
Every year, LA County auctions off properties that have defaulted on their taxes, providing a unique opportunity for investors. These tax sales help the county reclaim lost revenue, which is vital for funding public services.
The starting bid for these properties is set to cover the unpaid taxes, fees, and associated costs. Plus, these properties are typically free of mortgages or deed of trust loans, offering a clean slate in an otherwise pricey market. It’s a win-win for both you and the county.
Getting Started with LA County Tax Deed Auctions
So, how do you begin in LA County? It all starts with the Los Angeles Treasurer and Tax Collector’s website.
Here’s a step-by-step guide:
Before participating, make sure to do thorough research by exploring the LA County Assessor Portal and the Bid for Assets site.
Frequently Asked Questions
What is a tax deed auction?
A tax deed auction is a public sale of properties that have defaulted on their taxes. The county sells these properties to recover the unpaid taxes.
How can I participate in the LA County tax deed auction?
You can participate by registering on the Los Angeles Treasurer and Tax Collector’s website and the Bid for Assets auction site. Follow the instructions provided for registration and deposit submission.
Are the properties free of mortgages?
Yes, properties sold at these auctions are typically free of mortgages or deed of trust loans, giving buyers a clean slate.
When do these auctions take place?
The auctions usually take place in October, with the auction list available a few weeks before the scheduled date.
Where can I find more information?
You can find more information on the Los Angeles Treasurer and Tax Collector’s website and the Bid for Assets auction site.
Auction FAQs
I would like to get notification about upcoming auctions in LA County. What do I need to do?
Subscribe to Auction Email Notification.
How can I obtain a list of properties scheduled for an auction?
You can review and print the list of “Properties Remaining for Sale” for a specific auction under the Schedule of Upcoming Auctions page.
What are known special conditions?
Special conditions such as contamination, easements, or Mello-Roos apply to certain properties. It’s important for buyers to do their due diligence as properties are sold as is, and the Treasurer and Tax Collector do not assume responsibility for the conditions, liens, environmental hazards, or any other special conditions.
I would like to bid on properties offered at an auction. Are there different bidding requirements for an in-person auction versus an online auction?
Yes, there are different bidding requirements for an in-person auction versus an online auction. Please review “Terms and Conditions” for a specific auction, under the Schedule of Upcoming Auctions page.
How do I find or see a property that I would like to bid on at an auction?
The Office of the Assessor provides property information, including maps that you can access at the Los Angeles County Office of the Assessor. Enter the property street number and street name, or the Assessor Identification Number, to find the property details. For properties without street addresses, the approximate geographic location can be determined using County Assessor Platt maps and GIS maps, also found on the Assessor’s website at the Los Angeles County Office of the Assessor. Only a property survey can determine the exact boundary lines of a property. Interested bidders must bear the expense and receive permission from the owner to access the property.
Handy Research Tools
These sites are invaluable for digging deeper into your chosen property, from its exact location to boundary specifics. Conduct thorough due diligence, consult with experts, and get ready both financially and knowledge-wise for the auction.
Need a Hand?
Get our free Tax Lien & Deed Mini-Course, or book a call with us to build a free customized Tax Lien & Deed investing plan. Save yourself years of trial and error. Get it here.
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.