| If you're interested in buying property sold for back | | | | go to the government. |
| taxes, you will probably not be very successful trying | | | | You can offer the first group of owners - the |
| to bid on it at tax sale. There's too much risk and | | | | desperate owners - $200 for their deed, and a deal to |
| competition involved. But this is really no problem - | | | | give them a percentage of the profits when you sell |
| there's a much easier and much less risky way to buy | | | | the property (or, alternatively, you can rent it back to |
| property sold for back taxes outside the auction. | | | | them). |
| It's a pretty obvious solution: buy property sold for back | | | | The second group is the real gold mine. Just tell them |
| taxes directly from the owners... but only after tax sale, | | | | that since they're already letting the property go, could |
| not before - a mistake many new buyers make. | | | | you pay them $200 for their time in signing the deed |
| If you try to approach the owners before tax sale, you | | | | over - just so you can see if you can do something |
| will run into a lot of resistance. Many owners will be | | | | with it, instead of the government? You will get an |
| being romanced by other investors - and the ones | | | | overwhelming positive response in both instances. |
| who aren't are busy trying to find a way to pay the | | | | Then, you can pay the taxes off yourself and do |
| taxes and keep their houses from being sold. | | | | whatever you like with the property - or, if you don't |
| In contrast, after the auction, investors stop calling. | | | | want to or can't pay the taxes off, price the property |
| Most have moved on to the next area tax sale and | | | | high enough that you'll make a nice return on your |
| those owners. Even though it's perfectly legal to buy | | | | $200 investment (how does $5,000 sound?) and still |
| property sold for back taxes even after it's been | | | | attract a buyer - likely another investor - immediately. |
| "sold," most investors don't realize that this is the best | | | | Then, let them deal with paying the taxes off. |
| time to get great deals from very desperate owners. | | | | If you're a new investor without a lot of cash, or a |
| Nearing the end of the redemption period, those who | | | | seasoned investor looking for a new way to get more |
| can pay off, will have. And mortgage companies have | | | | properties, this is the least risky and most profitable |
| bailed out mortgaged properties. All that leaves is | | | | way to pick up property sold for back taxes. And with |
| owners with free and clear properties who are about | | | | the current number of foreclosures, there's a lot to |
| to lose everything if they don't sell - and owners that | | | | choose from. |
| simply don't care and have decided to let the property | | | | |