How to Buy Back Tax Property Outside the Auction For Less Than $500

The tax sale auction is no longer a great place to buy back tax property. Among other pitfalls – not being able to inspect property beforehand, and owners paying off 95% of the time – the influx of investors in the last 10 years has ensured that properties will get bid up close to retail value. Here’s how to buy back tax property outside the tax sale auction for less than $500.

1. Wait until about nine months after the tax sale. This will be the point at which owners that still haven’t paid their taxes are deciding to just let the property go. This will also allow for banks and other lien holders to pay off properties, leaving mostly properties without mortgages. If you’re going to buy back tax property, free and clear is the best kind!

2. Contact the owners. Most will have moved on at this point, and are letting the government have the property. You’ll also find many owners that never lived in the property – heirs, landlords, etc. These people are often trying to get a property they don’t want to maintain out of their hair the lazy way.

3. Ask them if they’d mind signing over their deed to you. Say you’d like to see if anything can be done with it before it goes to the government. Offer them $100, $200, whatever you think will get a “yes” for their time in signing over the deed.

4. You just learned how to buy back tax property for $500 or less, and you now own it. Either pay the property taxes off and keep the house or sell it for retail value. Or, if you truly only have $500 to your name, you can take your profits now by selling quickly to another investor for well below market value, and still walk away with thousands in profit.

If you buy back tax property this way, it’s almost risk-free. If anything goes wrong with the deal, you’re not out much money. You can always let the property go (without ever even recording your name on the deed)! And 99% of the time you’ll end up walking away thousands richer – all on an investment of a few hundred dollars.

The current foreclosure rate won’t last forever – take advantage of it now.

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Delinquent Tax Properties – Why They Are the Best Source of Property

Are you looking to make money from delinquent tax properties? There are several ways. The first question to ask yourself is, what do you want to accomplish by getting involved with delinquent tax properties?

Basically there are two ways to make money by getting attending tax sales: return, in the form of interest, on tax liens that you can purchase, and which wind up paying you off, or by acquiring the properties themselves at a bargain price.

If you’re interested on earning an above-market rate on your money, consider investing in tax liens. About half the states in the country sell tax liens against delinquent tax properties. Once you buy a tax lien, the owner and other interested parties will have a certain time period to pay off the lien, with interest and reimbursement of your legal costs. This is called the redemption period. If you don’t really want to acquire delinquent tax properties but are interested in a solid return only, buy liens on nicer properties in good areas. Most of the time the lien will be bid up by other people attending the auction to about 75% or more of the property’s value. But usually you earn the stated interest rate on the entire amount you invest.

By investing in nicer properties, you almost guarantee that you will be paid off and earn your interest. Over 95% of properties in the upper range of condition and value wind up paying off. Just don’t overpay for the lien in the event the lien doesn’t pay off. In that case you will apply for a deed after the redemption period and receive the property for what you invested in the lien.

The second way to make money is to try to acquire delinquent tax properties. I’ve found that most people want to get involved with delinquent tax properties in order to acquire bargain property. This is a lot trickier.

If you attend a tax deed sale, where a deed (and immediate ownership) is offered, you will be bidding against several others and the price will often reach retail value. If you buy tax liens to try to get property, you will have to wait out the redemption period, and will also often have to bid the prices of the liens up to near retail value. You may have to bid on low-end properties to have any chance of acquiring one with a lien. Also, you must hire an attorney to handle all of the legal work that goes along with acquiring delinquent tax properties through a lien.

So does this mean that it’s difficult to get cheap tax delinquent properties? Not at all. You just have to approach it from the right angle: buying the tax delinquent properties right from the owners before they lose them!

Now you don’t have to wait to get your property and do all the research needed to buy tax liens or tax deeds. Just see who is about to lose their property to tax sale, and contact them right beforehand! You’ll be amazed, many of the delinquent tax properties are free and clear, and the owners simply don’t want them anymore or can’t afford to keep them up. Then you can resell immediately for nice profits, or keep them for rentals.

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