subject: Buying Property At A Tax Sale Is A really Bad Idea [print this page] Buying Property At A Tax Sale Is A really Bad Idea
No matter who you are, armed with the right info, you can be successful investing in buying property at a tax sale, without actually going to the tax sale. Using insider techniques to get the most profitable type of property at the right time pretty much guarantees your success. This method of buying property at a tax sale is easy if you know what you're doing: tax sale property... bought after the foreclosure auction is the way to go.
Why not just bid at tax sale? Well, there are a couple of serious considerations. You'll pay close to market value this way, due to the immense competition. And did you know you can't view the properties before buying them? You could end up owning a dump you've never seen, this way. Again - tax sale is a waste of your time. 95% of the time, the owners redeem their property out from under you anyway.
Don't take this to mean you can't get a great deal on tax property - quite the opposite. What to do is to wait until the redemption period after tax sale has almost expired, and then buy property from the delinquent owners directly. Those that can redeem, have, by this point. The ones that are left have probably decided to just let it go.
They'll be willing to sell for next to nothing. These owners, such as heirs, don't want to deal with the tax burden. Be bold, and just ask them if they'd sign the deed over to you - since they're letting the property go anyway. The paperwork necessary could take an hour to fill out - offer them $200 for their time. Once you've got the deed, just redeem the property, or sell before the end of the redemption period.
If you're serious about buying property at a tax sale, without the usual competition, this is the way to do it. The number of tax foreclosures is through the roof, so don't wait to get started.
Want to know the tax sale investors' biggest secret? in most counties, any amount that's bid over what was owed on the taxes on the house belong to the owner that lost the property. More often than not, the owners don't understand their legal right to the money. Since they usually are gone from the property, any mailings they get from the county go unnoticed. And guess what happens next? If they don't collect it in time, the government gets to keep it.
Since this money isn't held at the state level, you're not subject to the state "unclaimed funds" money finder laws, in most places. That means it's legal for you to charge up to 50% to locate and help collect these funds for owners. That means some nice paydays, since real estate overages are often $10,000 or much more.
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