subject: Investing In Real Estate Tax Sale Overages - Hidden Rei Secrets For Crazy Profits [print this page] Regardless of your experience level or bank balance, if you know what you're doing, you can make a lot of money investing in real estate tax sale overages. Understanding which type of property to invest in is key; if you understand that, you'll be unstoppable. This property is brimming with equity, and is often free and clear - tax foreclosure property.
If you're thinking of buying property at tax auction, stop right there. The process is designed to elicit the highest price for a property - and your competition makes sure it stays that way. This method also ties up a lot of cash - you'll have to have a check for the entire amount of your bid with you. Don't bother with tax sale. The owners usually redeem the property anyway, leaving you empty-handed.
Does this mean you're out of luck? No way. Instead, you're going to buy directly from the owners at a specific point in the process - when their property is about to be lost forever. Most of the owners that haven't redeemed are owners that don't want the property anymore.
These are the exact type of people you want to work with. These owners, such as heirs, don't want to deal with the tax burden. The deed is worthless to them - so just ask if you can have it! Offer to pay them for their time - say, $200. Then, it's up to you to decide how to take your profits from your $200 property!
Use this method and you're sure to have success buying property, even if you've only got $200. There's never been a better time to start buying tax property.
But wait... there's another big tax sale secret. when overbids occur at tax sale, the amount over the taxes is usually due back to the original owner. Often, owners don't know this. Notifications from the government often go to the tax sale property, where they no longer live. Unfortunately for the owner, if they don't collect the money in time, they'll lose it - permanently. This is where knowing how investing in real estate tax sale overages comes in real handy.
But there is some good news. Since this money isn't held by the state, state laws capping out finder's fees don't apply. What that means for you is that you can charge 40-50% as a finder's fee for locating this money for owners. That means some nice paydays, since real estate overages are often $10,000 or much more. Understanding these tips can help you profit by investing in real estate tax sale overages.
