| Sale of property for back taxes is creating a huge | | | | themselves. And the timing's important too - wait until |
| opportunity for investors in today's foreclosure market. | | | | after the tax sale. |
| These properties are stellar investments because of | | | | The owners get a year or so to try to pay their taxes |
| one major factor: they almost never have a mortgage. | | | | off after the property's been sold. If you approach |
| If a mortgage company owns a mortgage on a | | | | them before that, they'll be trying to figure out a way |
| property, they will never let it go to the sale of | | | | to pay. If you wait until after, until close to the end of |
| property for back taxes. They will just step in and pay | | | | the redemption period, you'll find a lot more owners |
| the back taxes, so they can foreclose or do whatever | | | | have realized they can't pay and need to sell. |
| they like with the property (assuming the owner also | | | | This means you'll get their property for very cheap, as |
| isn't paying their mortgage.) | | | | low as $200, depending on what angle you use and |
| So what does this mean? Properties that make it all | | | | what deals you're willing to strike up. |
| the way through the sale of property for back taxes | | | | Contrast this to investing at the sale of property for |
| are generally free and clear - and that means full of | | | | back taxes. You buy a deed for too much to really |
| equity. No wonder everyone is clamoring to bid on | | | | make a huge profit. Then you wait out the redemption |
| those properties. | | | | period, during which time the owners usually pay off. |
| But because everyone and his brother is now buying | | | | At the end of it all, you've made a few hundred dollars |
| at tax sale, that means that properties get bid up close | | | | - not the thousands you were going for. |
| to retail value. So how can you still get free and clear | | | | The clear winner is investing outside the tax sale. |
| property for a steep bargain - and buy all that equity | | | | Follow these few simple rules, and you will make |
| for next to nothing? | | | | double or triple, or more, what you would have made |
| It's actually pretty easy. You just have to buy it outside | | | | at tax sale - and that's without taking the risks inherent |
| the tax sale auction - directly from the owners | | | | in tax deed/tax lien investing. |