Texas and Georgia—what makes them different? They aren’t classified as lien states, nor are they deed states. Instead, they are often referred to as The Hybrid States.
So, what does that mean for investors?
What Are Hybrid States?
Hybrid states, like Texas and Georgia, offer a unique combination of benefits from both lien and deed systems. These states allow you to acquire tax deeds while also earning penalties if the property redeems during the redemption period.
Why These States are Ideal for Investors?
Investing in hybrid states can significantly grow your tax deed portfolio while offering flexibility in strategy. Here’s how they stand out:
- Texas:
In Texas, properties that redeem within the 6-month redemption period come with a 25% penalty on top of the purchase price. This means a quick turnaround and a substantial return on your investment. - Georgia:
Georgia offers a 20% penalty during the 12-month redemption period, providing investors with a steady return even if the property redeems.
Key Advantages of Investing in The Hybrid States
Dual Benefits: These states let you profit in two ways—either acquire properties at a low cost or earn penalty returns if the property redeems.
Short Redemption Periods: With timelines as short as six months in Texas, you’ll see results faster compared to traditional lien states.
Higher ROI Potential: Penalty rates in these states are impressive—25% in Texas and 20% in Georgia—offering returns that outpace most investments.
These unique features make hybrid states an attractive option for tax deed investors looking for flexibility and higher profits.
Additional Resources
Watch This Week’s Episode
Hybrid states are an incredible opportunity to diversify your investments. Ready to dive deeper into the strategies for investing in hybrid states? Check out this week’s episode of Tax Lien TV to learn how you can leverage these unique opportunities to grow your portfolio.inside!
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Dustin Hahn
