| If you want to buy property for back taxes, you're a | | | | this time, and offer to buy what is, in their minds, their |
| smartie. Of all the types of property you can buy, back | | | | now-worthless deed. You can often get these deeds |
| taxes property is the most profitable. The problem is, | | | | for only a few hundred dollars, and flip the property |
| the tax sale is getting too crowded these days, as | | | | before you ever even pay the taxes off. |
| more people find out about this investing method. The | | | | And all's well that ends well: these folks are usually |
| competition's too fierce to get good deals anymore. | | | | glad to get at least something for their property, and |
| Here's how to buy property for back taxes, without | | | | would much rather see a person like you get it and do |
| competing against other bidders at the tax sale | | | | something with it than watch a greedy, evil tax sale |
| auction... and why you must invest this way, if you | | | | investor foreclose. It's an important psychological |
| want to be successful. | | | | difference, and it will allow you to buy property for |
| Besides the competition, there's one main, glowing | | | | back taxes without dealing with the headaches of |
| reason why you must not buy property for back | | | | buying from the auction, and make a lot more money |
| taxes at tax sale: you can't inspect it first. Would you | | | | while you're doing it. |
| buy a house to live in you couldn't inspect? Doubtful. If | | | | Here's another secret: in about half the states in the |
| you bid at tax sale, you're committing to buy, in cash, a | | | | U.S., when someone bids more for a property than is |
| property that may have extensive problems you don't | | | | owed for taxes, that overage amount is held for the |
| know about... or that may become extensively | | | | owner to come in and collect. Most owners don't |
| damaged in the period of time after you've bought it, | | | | realize this, since in many states, the money just goes |
| but before you can foreclose (1-5 years, depending on | | | | right to the government. The owners rarely figure it out, |
| what state you're in). If that's not enough to convince | | | | since they don't live at the property anymore and, thus, |
| you, what is? | | | | don't receive notice from the government that they |
| There's really no reason to take this risk. There's a | | | | have the money waiting for them. After a year or so, |
| little-used loophole in the tax sale investing business, | | | | legally, the money becomes property of the |
| and you should start using it exclusively. It's simple: buy | | | | government, and the owner loses it forever - even if |
| directly from the owners... but only after the property | | | | it's $50,000. |
| has already been sold at tax sale. It's the only surefire | | | | Since this money isn't held at the state level, you're not |
| way to buy property for back taxes, and know what | | | | subject to the state "unclaimed funds" money finder |
| you're getting before you buy. | | | | laws, in most places. So you can find these owners |
| During that redemption period where owners can pay | | | | and charge up to a 50% finder's fee for your |
| off their taxes, you can legally (in most places) buy | | | | information and collection service. Since these overbids |
| their property and pay the taxes off yourself. After | | | | regularly run into the tens of thousands of dollars, you |
| tax sale - if they can't bail the property out - in their | | | | can easily make in the six figures yearly making a full |
| mind, their property's already been "sold," even though | | | | time business out of it. |
| they still own it for a while. You approach them during | | | | |