| "If I pay back taxes on property, do I then own it? This | | | | still thinking they will come up with the cash to pay the |
| is a pretty common question/misconception among the | | | | taxes off in time. Or, you won't get a hold of them at |
| tax sale "uninitiated." While purchasing tax property is | | | | all; they're too busy dodging creditors and trying to |
| hands-down the best way to invest in property, it's not | | | | avoid the whole ordeal. |
| as simple as you just pay the back taxes on property, | | | | By waiting until after the tax sale, those who can pay |
| pick up the deed, and then go on your merry way. | | | | off, will have. The rest will fall into one of two |
| Most of the time, you'll be bidding on the property | | | | categories: desperate to sell, or don't care anymore. |
| against other bidders at tax sale. Because of the | | | | The ones who are desperate to sell have no choice |
| competitive nature of the business, most properties get | | | | but to sell at a steep discount. Those that have |
| bid up near retail value. This is not a good way for | | | | decided to just let the property go (you'll find many of |
| beginners (or anyone, really) to invest. Plus, you can't | | | | these!) will be happy to sign over their deeds to you |
| inspect the properties first. There is another way to | | | | for as little as a couple hundred dollars, just to move |
| get these properties, however, that allows to you pay | | | | on from the tax sale. |
| back taxes on property and as little as $200 for the | | | | If you follow the above advice, you'll find you can |
| deed, and then flip the property for thousands in profit | | | | acquire a lot of property very quickly and cheaply. You |
| if you like: buying property outside the auction. | | | | can even get started with as little as $500 in the bank. |
| There's no secret society here; if you want to avoid | | | | If you don't have the money to pay the taxes, you can |
| the tax sale, you have to purchase from the owners. | | | | always flip the property to another investor, still at a |
| But the timing is the really important thing here. If you | | | | steep discount, and walk away with a few thousand in |
| approach them prior to the tax sale, they are probably | | | | profit on the deal. |