| Buying real estate by back taxes investing is the most | | | | have to sell, or they don't care anymore and are |
| profitable way to make money right now. Because of | | | | planning to just let the property go. For the first group, |
| the high foreclosure rate, buying real estate for pennies | | | | you can negotiate all kinds of good deals to buy their |
| on the dollar has never been easier. Here's how to get | | | | property for extremely cheap. |
| those properties by back taxes investing. | | | | But the second group is going to be your true diamond |
| 1. Skip the tax sale. Bidding here will do you no good - | | | | mine. Those who have already decided to just let the |
| too much competition. However, the tax sale | | | | property go to the government will often be more than |
| information will prove useful to you after the fact. You | | | | happy to sign their property over to you - even better |
| can research the results, and see which properties | | | | if you offer them $100 for their time to sign the |
| other investors have carefully researched and | | | | documents. They'd rather see a small-time investor get |
| deemed to be worthy of back taxes investing. | | | | the property than "those jerks" who bought at tax sale. |
| 2. About nine months into the redemption period, check | | | | 4. Decide whether to keep the property or flip it. Since |
| again and see who still hasn't redeemed. Most states | | | | you only paid a tiny fraction of the property's worth, |
| give owners a year to rectify the tax problem. Nine | | | | you can easily sell it to another investor for, often, |
| months in, those that haven't probably aren't going to. | | | | thousands in profit - that way if you don't have the |
| These properties are also likely free and clear - if they | | | | money to pay the taxes, you can still profit from the |
| were mortgaged, the mortgage company would have | | | | property. Or, if you can afford to, pay the taxes off |
| paid the taxes by that point. | | | | and keep the property to live in or rent out. |
| 3. Contact the owners of the properties. See what the | | | | Buying real estate by back taxes investing is truly that |
| deal is - most will be happy to tell you. You'll find two | | | | easy when you follow the simple steps above - and |
| common things - either they can't pay and know they | | | | the market's never been quite as hot as it is right now. |