| Investing in properties being sold for back taxes is a | | | | likely free and clear. |
| great move, especially with the record high number of | | | | 4. Contact the owners of the remaining good |
| foreclosures. Here's how to get them for a fraction of | | | | properties. See why they haven't paid off. You'll find |
| their worth, without attending the auction. | | | | some owners who just couldn't come up with the |
| 1. Skip the auction. Property being sold for back taxes | | | | cash - they'll be in a hurry to sell you the property, for |
| at auction almost never go for just the amount of | | | | far, far below market value. |
| back taxes. The bidding process ensures that. Plus, | | | | Other owners have simply decided to let the property |
| you can't inspect the properties beforehand, and have | | | | go, for a number of reasons. These owners will be |
| to pay for your bid, in cash, at the auction. | | | | your main revenue source - they're often willing to |
| 2. After the tax sale, check the results. See which | | | | deed the property over to you for nothing more than a |
| properties got a lot of bids. This will tell you which | | | | few hundred dollars, just to get the deed out of their |
| properties seasoned investors and tax sale companies | | | | name sooner. |
| thought were great deals. These will be the properties | | | | 5. Pay the delinquent tax bill - or, sell quickly. If you've |
| you eventually go after. | | | | only got a small amount of cash invested, you can |
| 3. Wait until the redemption period is about 3/4 over. | | | | afford to flip the property, even if it's in great condition, |
| During the year long grace period after tax sale, | | | | for far less than retail value, just to get a quick sale. |
| delinquent owners can still pay their taxes off. If after 9 | | | | You'll still walk away with thousands in profit, and you |
| months they still haven't, chances are they're not going | | | | won't have to deal with selling for retail value. |
| to. Also, this weeds out properties that have | | | | Or, pay the back taxes, and keep the property - |
| mortgages - mortgage companies pay back taxes to | | | | simple as that. Rent it out, or use this technique to get |
| avoid losing their stake in the property. So what's left is | | | | a great, cheap home for your family to live in. |