subject: How To Buy Commissioner Sale Homes - 2 Insider Tips Guaranteed To Make You More Money [print this page] Tax sale investing is the right direction to head in in the current economy, especially if you're a beginner or don't have a lot of cash to invest. However, if you're trying to figure out how to buy commissioner sale homes (at tax sale), you're barking up the wrong tree. It's growing more and more difficult to get a good deal at commissioner sale, and you've got to learn a few advanced tax sale investing techniques - namely, to buy commissioner sale homes without attending the tax sale auction, and to collect tax sale overages.
Luckily, this is easy. It's perfectly legal to buy commissioner sale homes directly from the tax delinquent owners themselves. A lot of people go the route of contacting these owners before the commissioner sale, and this, too, is a mistake. As you can imagine, tax delinquent owners are scrambling to find a way out of their tax mess, and before their home is "sold" at tax sale (it's not really sold, since they have another year or so to redeem in most cases), they are much less likely to accept the situation and consider a deal.
That's okay too! You can still buy commissioner sale homes from the owners after the tax sale, and this is the best time to do so. You can often find owners who have moved on that are willing to simply sign over their deed to you to get it all over with. Owners of nicer properties are more willing to accept that they will have to sell for much less to avoid losing everything. This is a great time to employ a wide variety of buying tactics, most of which you can do with very little cash on hand.
Another way to make a boatload of cash from commissioner sale homes is by collecting the overages. These are the overbids made on properties at tax sale. For example, if someone owed $5,000 in taxes and a bidder bid $20,000, that owner would be owed the $15,000 difference. But guess what? Most don't realize they're supposed to get it. They move on, and leave it behind. Eventually, the government is legally able to seize the funds.
Due to a legal loophole, there are no limitations on finder's fees for these funds. That means you can act as a money finder, locate the owners, and collect a 50% finder's fee on these funds. Real estate overages can be $50,000, $100,000 or more - so those finder's fees can add up, fast. And since the former owners are clueless about where they could have "found money", getting them under contract for 50% is a breeze, assuming you play your cards right and don't reveal the source of the funds.
