Posts Tagged ‘Properties’

Buying Back Taxes – Properties For Fun and Lots of Profit in 5 No-Brainer Steps

March 11th, 2021

If you’ve been considering taking the leap into property investing, now’s the time. Buying back taxes properties is a great place to start. You can potentially buy dozens of properties a year if you know the right way to go about getting them. You should learn to buy tax property outside the auction for the best profits. Here’s how.

1. Let other investors bid at tax sale… you stay home. New tax sale investors always drive prices up – no more good deals to be had. Also, Buying back taxes properties at tax sale is risky. You can’t inspect it first, more than doing a drive-by. Even if it looks good from the outside, it could have major issues inside. You’ll be able to avoid all these pitfalls by getting your properties without going to the tax sale.

2. You’ll buy property at the end of the redemption period after tax sale. This weeds out owners that will redeem the property – they have, by this far in. This leaves owners that can’t or don’t want to pay the taxes, for a number of reasons. Keep your eye out for this situation – it’s the one you want to find, because it makes buying back taxes properties really simple!

3. Next, determine who the owners are and what their contact info is. Free searches on the web as well as paid skiptracing sites makes this step easy. When you have their contact info, give them a call or an email.

4. Buy the deed. If they aren’t planning to pay the taxes, tell them you’d love the chance to see if anything could be done with the property, and offer a few hundred bucks for their time. These owners are often glad to see you get the property, and not the tax sale bidder.

5. Sell or pay the taxes on the property. If you have enough cash on hand, you can redeem the property and rent it or sell it later for market value. You can also opt to sell right away and let the new buyer take care of the back taxes. Either way ensures a healthy profit on your investment.

This method of buying back taxes properties works. Try it for yourself! And because of the rising number of tax foreclosures, there’s never been a better time to start buying tax foreclosure property. Like anything in life – taking action is the first step!

The current foreclosure rate won’t last forever – take advantage of it no

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

February 11th, 2021

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.