subject: Buying Unpaid Taxes - Like The Rei Pros [print this page] Donald Trump's no fool - he invests in real estate because it's the best way to get rich, especially if you're in the business of buying unpaid taxes. What you'll need to become intimately familiar with is the right (and wrong) way of buying unpaid taxes, and exactly how to go about getting it in the most profitable way. Follow these rules, and you'll find investing in tax property - outside the auction - to be the best move you've ever made.
Don't even consider buying property at tax sale. There is stiff competition at tax sale, and the bidding will never end low enough for you to profit. Also, properties are sold as-is - and you can't view them before buying them. Does that sound smart to you? Here's the kicker: if you do win the bidding, and pay the money, the owner will probably pay off the taxes before you get the property anyway.
This doesn't mean you can't get a great deal on tax property. Wait out most of the redemption period, and then approach the tax delinquent owners at that point, and that point only. Would you believe that most of the owners left at this point have properties they just don't want anymore? It's true.
Getting this property is so easy, it's amazing. These are often absentee owners that just want the property gone. Simply ask them if they'd mind signing over the deed. Offer $200 for the hassle of signing the documents. With $200 invested, you can then afford to sell for cheap and take your profits immediately! Or, redeem, and keep the property.
If you're serious about buying unpaid taxes, this is the way to do it. And it's the perfect time to start, with a huge number of foreclosures right now.
Here's another big tip... the former owner is usually due any money that was paid for a property at auction that exceeded the amount he owed in taxes. Often, owners don't know this. Since they usually have moved on from the tax sale property, they don't get notices of the overage. 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). So if you can find the owners, you can charge up to 50% as a finder's recovery fee. Since these are real estate overages, they're often for high amounts - which means lots of profits for you.
by: Maggie Dawson
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