| If you're not in a position to spend thousands investing | | | | Or, if they want to sell, offer to pay them $200 for |
| in property, that doesn't mean you can't start buying | | | | their deed and agree to split whatever you can get for |
| properties for back taxes now. Tax property is one of | | | | it. |
| the few types of property you can often buy for less | | | | 3. Take care of the tax problem. Either pay the taxes |
| than $500 - free and clear - and easily turn a profit on, | | | | off before the end of the redemption period yourself, |
| even if you're a beginner. Here's how to start buying | | | | or sell it quickly - for well below market - to another |
| properties for back taxes, now. | | | | investor. If it's an especially nice property, try selling it |
| 1. Locate owners of tax property that are about to | | | | for closer to retail value. Either way, let the new owner |
| lose their homes. This means finding them after the | | | | take care of the taxes if you don't want to. |
| tax sale. Owners generally get a year after tax sale | | | | 4. Take your profits! After investing only a few |
| to pay the taxes off, so you'll want to see who still | | | | hundred dollars, you'll walk away with at least a few |
| hasn't paid their taxes about nine months after tax | | | | thousand, if not much more. By investing so little, you |
| sale. | | | | can start buying properties for back taxes without |
| This will tell you a few things. The property is probably | | | | worrying too much about risky investments or owning |
| free and clear or the mortgage company would have | | | | bad properties. It's hard to make a bad investment for |
| paid the taxes. And the owner probably isn't going to | | | | $200. |
| be able to come up with the cash to pay the taxes. | | | | Not only that, but you'll help an owner out. Even if all |
| This creates a huge opportunity for you to start buying | | | | the owner ever gets is the $200 you pay him for his |
| properties for back taxes with these folks - and | | | | deed, it's better than the goose egg he stood to get by |
| there's a lot you can do with all that equity. | | | | not taking care of the problem. You'll also be delighted |
| 2. Find out what the owner's plan is. If they've decided | | | | to find that not many investors are working these |
| to just let go of the property, great. Offer them a few | | | | properties at this point - meaning you'll probably be the |
| hundred dollars for their time in signing the deed over | | | | only game in town. Regardless, use the method above |
| to you, and ask if they might let you see what you can | | | | and you'll have your real estate investing business off |
| do with it rather than just giving it to the government. | | | | the ground in no time. |