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Invest in a Back Taxes Property and Bump Up Your Real Estate Profits

In the current economic climate, tax delinquent property is far and away the best property investment you can make. There’s tons of it, it’s easy to get, and there’s a lot of money to be made from it. If you can find a back taxes property and buy it without attending the auction, you’ll be able to profit as much as you want this year.

What’s the best way to find a back taxes property? This is simple, but usually overlooked by investors. First, don’t buy from the tax sale – there is too much competition, and it’s too risky to buy a property you can’t inspect first. But don’t buy it from the owners yet, either. Wait until after the tax sale, and research the properties that actually sold.

Why? Well, first, you’ll seldom find a back taxes property with a mortgage at this point. This is because banks will step in and pay off taxes, rather than lose their stake in the property. Also, if a property actually sold at tax sale, then that means someone out there thought it was a good enough deal to buy it. Properties with no bids, you can forget about entirely. They’re trash.

Next, find the owners of these properties. They can still legally sell to you during the redemption period after tax sale, and they are highly motivated to do so at this point. You can often get properties for as little as a few hundred dollars during the redemption period.

Then, you can either choose to pay the taxes off yourself, or find a buyer before the end of the redemption period and let them pay the taxes off. This is a great, quick way to make a lump of cash without ever having to put out more than a few hundred dollars yourself.

Bidding on Property Up For Taxes – How to Get Tax Property For $200 Or Less

Thinking of bidding on property up for taxes at the next tax sale? You may want to reconsider. There are other ways of getting tax property outside of the tax sale, if you decide bidding on property up for taxes isn’t for you.

Tax sale does simplify things. All the properties available are auctioned in the same place. However, the bidding on property up for taxes is very competitive. Most nice properties are bid up close to retail value. You can’t inspect these properties before bidding on them, and often the owners pay them off anyway.

The best thing to do is to avoid bidding on properties up for taxes, and just buy them directly from their owners. But the best time to do this isn’t before tax sale; it’s after – towards the very end of the redemption period.

It’s still perfectly legal to buy these properties from their owners, even after they’ve been “sold”. But most investors don’t realize this.

About 9 months into the redemption period, check and see which properties are still unredeemed (their owners haven’t paid the taxes off). These will be the owners and the properties you want to look at. Tax sale investors’ bidding on property up for taxes at the tax sale will be valuable here too – you can see which of the remaining properties got bids, and that’ll tell you which are more desirable.

Next, contact the owners and offer to buy their property. At this point they’ll be desperate to sell, and willing to negotiate a very low price.

Want to get the property for $200 or less?

Find owners that have decided to “just let the property go,” meaning they have no intention of trying to sell or pay the taxes off. Tell them you’re a new investor and that you’d love the opportunity to try to do something with their property before it’s lost, since they’ve already decided to just let it go. Ask if they’d be willing to take $200 for their time in signing the deed over to you.

You’ll get a lot of “yesses” this way – and it’s the least risky way to invest in tax property. With only $200 invested, even if you are unable to flip to another investor, or pay the taxes off in time, you’ve lost almost nothing if you end up just letting the property go yourself. And it’s the only surefire method for getting property outside the auction for a steep discount.

Buying Back Taxes – Properties For Fun and Lots of Profit in 5 No-Brainer Steps

If you’ve been considering taking the leap into property investing, now’s the time. Buying back taxes properties is a great place to start. You can potentially buy dozens of properties a year if you know the right way to go about getting them. You should learn to buy tax property outside the auction for the best profits. Here’s how.

1. Let other investors bid at tax sale… you stay home. New tax sale investors always drive prices up – no more good deals to be had. Also, Buying back taxes properties at tax sale is risky. You can’t inspect it first, more than doing a drive-by. Even if it looks good from the outside, it could have major issues inside. You’ll be able to avoid all these pitfalls by getting your properties without going to the tax sale.

2. You’ll buy property at the end of the redemption period after tax sale. This weeds out owners that will redeem the property – they have, by this far in. This leaves owners that can’t or don’t want to pay the taxes, for a number of reasons. Keep your eye out for this situation – it’s the one you want to find, because it makes buying back taxes properties really simple!

3. Next, determine who the owners are and what their contact info is. Free searches on the web as well as paid skiptracing sites makes this step easy. When you have their contact info, give them a call or an email.

4. Buy the deed. If they aren’t planning to pay the taxes, tell them you’d love the chance to see if anything could be done with the property, and offer a few hundred bucks for their time. These owners are often glad to see you get the property, and not the tax sale bidder.

5. Sell or pay the taxes on the property. If you have enough cash on hand, you can redeem the property and rent it or sell it later for market value. You can also opt to sell right away and let the new buyer take care of the back taxes. Either way ensures a healthy profit on your investment.