Looking for an easy way to make a lot of money from back tax property? You’re in luck. Follow these steps to buy tax property with little to no competition for less than $200.
1. You’re going to skip the tax sale. The competition virtually guarantees you won’t get any good deals on back tax property at the tax sale. Also, you don’t get to see the interior of the property until close to a year has gone by. That means that when you are finally awarded the deed, you could find the property you bought a year ago trashed! Bad idea.
2. You’ll wait until just before the end of the redemption period. Most property with liens and mortgages has been paid off by now. The owners probably can’t or don’t want to pay the taxes, so the houses left at this point are likely going to be repossessed.
3. Locate the owners of back tax property you’re interested in. You can often find these owners just by Googling them; if they are more difficult to find, there are cheap paid services all over the internet that can reliably get contact info for hard to find people. You can then contact them via email, letter, or phone. (Phone usually works best.)
4. Offer to get the deed out of their hair now. Offer them $200 for their time in signing the paperwork. You might be surprised; many are just happy to see the property go to someone other than the government, and many are happy to get a few dollars out of it when they otherwise may have gotten nothing.
5. Sell or pay the taxes on the back tax property. The property taxes will need to be paid if you plan to keep the property as a rental. Or you can always avoid paying the taxes by selling to someone else before the end of the redemption period. That way, even if you don’t have a lot of money to get started with, you can still make a lot of cash without ever having to come up with any significant amount for the taxes.
This method works – try it for yourself and see! And you’ve picked a golden era to start tax sale investing – there’s never been a time quite like it. Back tax property is cropping up in numbers like never before due to the housing bubble burst.