subject: How To Buy Homes For Back Taxes - The Sneaky Way [print this page] In uncertain economic times, there is one investment concept that continues to offer huge profits: when investors buy homes for back taxes. What you really need to comprehend fully is how to buy the property, what type of property to buy, and - important - when to buy it. Learning how to buy homes for back taxes is easy, and easy to find: tax sale property... bought aftern the foreclosure auction.
A guess: you're wondering why not to just go to tax sale, and buy property there. The process is designed to elicit the highest price for a property - and your competition makes sure it stays that way. Not only that, but you can't inspect the property, or finance it - you have to pay for your purchase immediately, sight unseen. It's futile, even if you do get a deed: the owners have a year to pay off, and usually do.
Does this mean you're out of luck? No way. The owners of the tax properties are who you'll be going after, but only at the very end of the redemption period. This late in the game, those who still haven't paid their taxes probably aren't planning to, and are letting the property go.
These owners' properties will be easy to purchase. These are often absentee owners that just want the property gone. Getting their deeds are as simple as asking for them. Offer them $200 to sign the documents. Once it's yours, either redeem or sell - it's that simple.
This technique used to buy homes for back taxes is called "deed grabbing," and it's extremely effective when one considers . Don't wait another day to jump in - this is a golden era economically for tax sale investing.
One more BIG tip before you go... the former owner is usually due any money that was paid for a property at auction that exceeded the amount he owed in taxes. But sadly, the owners (who really need it!) are often unaware of this law. Since they usually are gone from the property, any mailings they get from the county go unnoticed. After a specified period of time, the government can seize the money - even if it's $100,000.
But all is not lost. Since this money is held at the local level, state money finder laws don't apply (usually). What that means for you is that you can charge 40-50% as a finder's fee for locating this money for owners. Since these are real estate overages, they're often for high amounts - which means lots of profits for you.
