Summertime has arrived in the southeast, bringing with it scorching temperatures and the highly anticipated tax sales in the state of Arkansas, which are set to kick off in July. After the challenging times of the pandemic, the live tax sale auctions throughout Arkansas have returned to their usual format, much to the delight of investors and tax sale enthusiasts.
For those who are newcomers to the world of investing in Arkansas tax sales and have grown accustomed to the convenience of purchasing properties comfortably from their laptops, get ready for an exciting experience when you join the crowd at this year’s auctions on the courthouse steps. Now, don’t get me wrong, there is always something convenient and thrilling about buying properties without leaving the comfort of your own home, but nothing quite compares to the buzzing atmosphere and competitive edge of a live auction. It truly ignites the passion for real estate investment and adds a whole new level of excitement.
One of the greatest advantages of attending a live auction is the smaller pool of investors. Unlike competing against hundreds of investors scattered across the globe, you’ll find yourself bidding against a select group of individuals. This presents an excellent opportunity for those willing to travel, spend a night in a hotel, and diligently conduct their due diligence before making an investment. However, it’s important to note that anyone you’re bidding against has also put in a significant amount of effort into researching the properties, so be prepared for some stiff competition.
Arkansas has experienced remarkable growth throughout the state, thanks to the influence of major players such as Walmart, Amazon, and various automobile manufacturers. The jobs created by these companies have propelled the economy to unprecedented heights, making Arkansas tax sales a favorite among investors looking to capitalize on the state’s growth.
As the go-to authority on tax sales, we at Tax Title Services are frequently asked about the major pitfalls associated with investing in Arkansas tax sales. However, we prefer to focus on the positives, so let’s begin by highlighting the advantages of Arkansas tax sales.
Firstly, Arkansas tax sale laws differ significantly from those in neighboring states like Mississippi or Alabama. While some tax sale investors label Arkansas as a redeemable deed state, however, the state boasts one of the shortest redemption periods in the country. This enables investors to keep their capital moving at a much faster pace, allowing for quicker turnaround and potential profits.
Another notable advantage is the high level of organization found across all tax sales in the state. The Commissioner of State Lands (COSL) is responsible for organizing the tax sales for all counties. The COSL maintains up-to-date lists on their website, offers an interactive GIS map, and provides records of previous sale results. Additionally, properties that did not sell at the tax sale can be purchased directly from the COSL through their Over-The-Counter (OTC) Auction process, further expanding the opportunities for investors to find desirable properties.
When considering the pros and cons of Arkansas tax sale investing, there is one aspect that can cause some confusion – the conveyance process involved. Many investors mistakenly believe that once they purchase a property through an Arkansas tax sale and the redemption period expires, they are ready to proceed with their investment and/or exit strategy. While this may hold true in certain situations, obtaining title insurance can be a different story.
The conveyance process by the Commissioner of State Lands involves a Special Warranty Deed for Taxes. While a Special Warranty Deed (SWD) can be insurable in some states without additional curative measures such as a quiet title action, a SWD for Taxes is not immediately insurable by most title companies. As a result, these title companies typically advise investors to either allow the property to “season” for a certain number of years or obtain a successful judgment through a Quiet Title Action. This can pose challenges for investors, as many attorneys do not offer a flat fee for Quiet Title Actions, and if they do, it can be excessively expensive and hinder the investment strategy. In addition to the excessive cost, a Quiet Title Action can take months if not years to complete.
However, there is a solution to this dilemma. Consider partnering with Tax Title Services, the experts in reviewing tax sales and providing a certification that is accepted by numerous title companies. With our certification, you can eliminate the need for seasoning or a quiet title action when pursuing title insurance, saving you valuable time and resources.
So, with summertime heating up and Arkansas tax sales just around the corner, there has never been a better time to explore the opportunities and advantages that await investors in this thriving market. Make the most of the live auction experience, take advantage of Arkansas’ growth, and let Tax Title Services be your trusted partner in navigating the intricate world of tax sale investing.