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.