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.