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 … Continue reading “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.

Delinquent Tax Properties – Why They Are the Best Source of Property

Are you looking to make money from delinquent tax properties? There are several ways. The first question to ask yourself is, what do you want to accomplish by getting involved with delinquent tax properties?

Basically there are two ways to make money by getting attending tax sales: return, in the form of interest, on tax liens that you can purchase, and which wind up paying you off, or by acquiring the properties themselves at a bargain price.

If you’re interested on earning an above-market rate on your money, consider investing in tax liens. About half the states in the country sell tax liens against delinquent tax properties. Once you buy a tax lien, the owner and other interested parties will have a certain time period to pay off the lien, with interest and reimbursement of your legal costs. This is called the redemption period. If you don’t really want to acquire delinquent tax properties but are interested in a solid return only, buy liens on nicer properties in good areas. Most of the time the lien will be bid up by other people attending the auction to about 75% or more of the property’s value. But usually you earn the stated interest rate on the entire amount you invest.

By investing in nicer properties, you almost guarantee that you will be paid off and earn your interest. Over 95% of properties in the upper range of condition and value wind up paying off. Just don’t overpay for the lien in the event the lien doesn’t pay off. In that case you will apply for a deed after the redemption period and receive the property for what you invested in the lien.

The second way to make money is to try to acquire delinquent tax properties. I’ve found that most people want to get involved with delinquent tax properties in order to acquire bargain property. This is a lot trickier.

If you attend a tax deed sale, where a deed (and immediate ownership) is offered, you will be bidding against several others and the price will often reach retail value. If you buy tax liens to try to get property, you will have to wait out the redemption period, and will also often have to bid the prices of the liens up to near retail value. You may have to bid on low-end properties to have any chance of acquiring one with a lien. Also, you must hire an attorney to handle all of the legal work that goes along with acquiring delinquent tax properties through a lien.

So does this mean that it’s difficult to get cheap tax delinquent properties? Not at all. You just have to approach it from the right angle: buying the tax delinquent properties right from the owners before they lose them!

Now you don’t have to wait to get your property and do all the research needed to buy tax liens or tax deeds. Just see who is about to lose their property to tax sale, and contact them right beforehand! You’ll be amazed, many of the delinquent tax properties are free and clear, and the owners simply don’t want them anymore or can’t afford to keep them up. Then you can resell immediately for nice profits, or keep them for rentals.

How to Buy Back Tax Properties – It’s Not the Way You Think

If you’re thinking of delving into the field of tax foreclosure properties, you’re headed in the right direction. The number homes being foreclosed in this economy is skyrocketing. There are more available properties than ever before, but if you want to be successful, you’ve got to know how to buy back tax properties – and it’s probably not the way you think.

The tax foreclosure industry has exploded. There are countless infomercials on late night television explaining how simple it is to go to the tax sale, pay the back taxes, and walk away with a great property for almost no money. This is a joke, and it is not how to buy tax properties anymore, if it ever was. Competition has made profitability at the tax sale next to impossible.

However, where there’s a will, there’s a way, and you can still buy back tax properties for, truly, pennies on the dollar, but you’ve got to outsmart and outwork your competition in the beginning. How? Buy back tax properties before they go to auction.

Sound like a no-brainer? Well, it sort of is, but almost no tax investors do it. Why? Well, they’re wusses. In order to get the best deals on tax properties, you’ve got to make contact and deal with the owner. Most investors think this will be awkward or difficult– let them keep thinking that, while you cash in on this unheard of economic climate.

You’ll find that these owners are frequently no longer living in the property. They either never lived there (heirs, landlords), and/or they’ve resigned themselves to the fact that they will lose the property to the government. When you come along just before they’re about to lose it forever, they are more than happy to make a deal with you just so their property goes to someone other than the “tax man,” and often you prevent them from losing everything at the last minute.

Buying Delinquent Tax Properties – 2 Huge Ways to Profit

If you’ve caught on to the fact that tax property is one of the best ways to make money in real estate (especially in this economy), you’re a step ahead of most new real estate investors. Here are 2 ways to make massive profit buying tax delinquent properties.

1. Buy the property without attending the auction. Most investors don’t exercise this legal way to get tax property – why, is anyone’s guess. The tax sale is not remotely close to the best way to get tax property. You can’t inspect the properties beforehand, and you have to bid against scores of other bidders. You’ll rarely see a nice property sold at tax sale for less than retail value or very close to it.

Buying delinquent tax properties is easiest if you buy directly from the owners – but only after tax sale, during the redemption period. This has given the owner plenty of time to try to pay the taxes off. Now he knows he can’t, and is desperate to sell – or just no longer cares and is ready to let the property go. Either way, this is the time for you to get in and make an offer. Find an owner that no longer cares, and you can pick up deeds for less than $1,000.

Also, by waiting until after tax sale, you’ve weeded out most properties with mortgages, as mortgage companies will bail out the delinquent taxes in order to avoid having the property be sold at tax sale.

2. Go after the huge overages created by tax sale. This is a big one, and it applies to mortgage foreclosures as well. When a bidder bids more at tax sale than was owed, that overage amount is often due back to the owner. But due to owner ignorance and government laziness, the owner often never connects with the overage and moves on. As you might guess, if it sits there long enough the government can seize it.

If you can find these owners and records of their missing funds and act as a liaison between the two, due to a legal loophole almost no one knows about (even those actively working delinquent tax properties!), you can legally charge the owner up to 50% for your service. On overages reaching into the tens of thousands of dollars routinely, especially with the current foreclosure rate, there is a lot of money to be made from these overages. And you can do it all from your home office, anywhere in the world.