How Back Taxes Owed on Homes Can Make You Rich

You've probably heard that investing in real estate ismoney off of back taxes owed on homes, you'll have
one of the best ways to get rich. This is true, but youto stay one step ahead of tax sale investors, and get
have to really know what you're doing, or you'll findthe deed to the property before the auction, without
yourself in a lot of pickles early on. Don't worry-- evenbidding- or after the auction, in the period of redemption
Donald Trump didn't get where he is without a little help;where the owner can still bail out his or her home
and he won't be your competition, if you're going to(usually, around a year).
work the back taxes owed on homes angle.How?
If you're going to invest in today's economy, theseWell, it's shockingly simple, and yet if you pay attention,
properties are prime investment material-- almostyou'll see that almost no one does this. Why? Maybe
always mortgage free-- meaning brimming with equitythey're antisocial. Maybe they feel guilty getting
and ready to be flipped for a huge profit. You can'tinvolved in other people's business when they're "down
overlook them if you want to be successful in theon their luck." Maybe they're just plain chicken.
coming years-- there's going to be more and more ofWhat am I referring to? Simply contacting the owner
them as back taxes owed on homes catch up withand dealing directly with them.
their owners, and they lose their properties to tax sale.Let's say it again: you can get rich investing in back
First of all, what does this mean, "back taxes owed ontaxes owed on homes, but only if you can be sure
homes"? Well, it's simple. When a homeowner doesn'tthat property's going to be yours once you pay those
pay his or her taxes and gets behind, their home willtaxes. The way to do that is not to bid on the deed or
become delinquent in the county they live in. It differsa lien at the auction-- the owner can still come back
from county to county, but at some point within a fewand pay that off, and take their deed right back from
years, usually, if the owners can't come in and payunder you. The only way you'll be able to invest in
those back taxes owed on their homes, then thethose properties with surety is if you deal directly with
properties will be foreclosed upon by the county andthe owners.
liquidated.It may seem counter-intuitive to you, but you'll be
The liquidation happens one of two ways- either thesurprised how often these owners are glad to hear
deed to the property is sold, or a lien on the property isfrom you! By the time the tax sale is rolling around,
sold. Sometimes this is done by auction, other times bythese owners are desperate to get out of the tax
lottery, and still other times by round robin. It candelinquent situation, and will be primed and ready to sell
happen all different ways, even within the same state.to you for pennies on the dollar. You'll also find
It's a very competitive way to get properties. Buyingabsentee owners and heirs who inherited an
tax liens or deeds has become very popular, and withunwanted property that are dying to get the burden
the rise in popularity has come a sharp decrease in theoff their shoulders and sell to you for a few hundred
profits to be had that way.or a few thousand dollars.
You're going to avoid all that. If you want to make