| When someone says they're going to "buy real estate | | | | you play your cards right. Then, pay the property |
| taxes," they generally mean that they're either investing | | | | taxes and keep the property, or flip quickly to another |
| in tax deeds, or buying a tax lien. They "buy real estate | | | | investor and let them take care of the tax problem. |
| taxes" because the starting bid for the deed or lien is | | | | 2. Forget owning property and collect overages |
| generally the amount of back real estate taxes, or | | | | instead. When bidders bid more at tax sale than was |
| property taxes owed on the property, and that's how | | | | owed, that extra overage is usually due back to the |
| the government recoups the taxes. | | | | owner. But the government notifies them at the tax |
| But if you want to take advantage of the foreclosure | | | | sale address - which they usually no longer live at. The |
| market, this may not be the most profitable way to go | | | | opportunity for you is in finding these owners, and |
| about it. Here are two better (and less risky) ways to | | | | reconnecting them with their funds. |
| make a lot of money off the foreclosure market: one | | | | By working on contingency to help collect the funds, |
| including property ownership, and one where you don't | | | | you can collect up to 50% of the overage as |
| have to own property at all. | | | | payment! All for helping owners get back money they |
| 1. Buy real estate taxes - but do it outside the sale. | | | | didn't know existed. Since the government gets to |
| This way, you'll still have to pay the back taxes if you | | | | keep this money if the owners don't collect, they are |
| want to own property, but you'll get it for much | | | | lazy with notifications, so these owners really need you |
| cheaper. The bidding at tax sale ensures properties | | | | and your commission is well-earned. |
| won't sell for a bargain. But that's okay - you can buy | | | | The best part about both of these opportunities, |
| directly from the owner, after the auction. It's still legal | | | | besides their incredible profit potential, is that you can |
| to purchase tax property during the redemption period | | | | work both from your home office with nothing more |
| - and this is a great time to buy. | | | | than a phone and internet connection. There's nothing |
| Your competitors aren't active during this period - they | | | | quite like being your own boss - if you haven't tried it, |
| just got done with tax sale. And now, the owners are | | | | these are two stellar ways to break into the huge |
| more desperate than ever to sell. You can often get | | | | paydays you can get from real estate, all while |
| deeds for a steep bargain - even as little as $200, if | | | | working from your underwear. |