Tax sale properties are great direction to go in with your real estate investing business. There’s a lot of money to be made in this field, especially right now. The current financial climate means there are more tax owned properties for sale than ever before… but probably not the way your first inclination led you to believe.
If you’re looking to invest in tax properties, it may seem counter-intuitive to forget the tax sale. Right? Isn’t that where you go to buy that sort of thing? The answer is yes. However, there’s lots of competition for the nice properties– the ones you’d want to buy– and you’ll have trouble being successful there without a doubt. The secret to tax foreclosure investing is to get tax owned properties for sale before they are owned by the government.
This means purchasing directly from the owners, and with the right timing and approach, you can really get some amazing deals. “Pennies on the dollar” truly applies here. Best of all, you’ll find almost none of these properties has a mortgage, since mortgage companies take care of tax issues on mortgaged properties to prevent them from ever ending up at tax sale in the first place!
Yes, you read that correctly- even though you aren’t buying at tax sale, you’ll still almost never have to deal with the headache of bringing that mortgage current! And mortgage-free homes are often lien-free homes as well. That means all you’re responsible for is that back tax payment… and today, you’ll find more often than not, it will only be a few hundred to a few thousand dollars.
Finding tax owned properties for sale isn’t so difficult. The hard part is finding their owners. Why? Well, in many cases, these owners are absentee landlords, or people who have another home out of state, or people who inherited a property they didn’t really want, and decided to just let it go to tax sale to get rid of it. They’re people who don’t care about the property, and probably live far away.
What this means for you is that they are people who are ready to make a deal. Even if it’s not on the market, you’ll find their tax owned properties are often for sale just for you when you make that call! Obviously, they can’t or don’t want to take care of the property anymore, and more often than not they’re happy to see the property go to a nice person like you instead of the government– and if they walk away with a few hundred or a thousand dollars, they’re usually more than glad.
Since these aren’t bitter owners who are being thrown off their property, you’ll find it’s much easier to get them on the phone and that they’re much more pleasant to talk to than, say, delinquent owners in mortgage foreclosure, who don’t want to give you the time of day. You’ll also be pleasantly surprised to find that in most cases, no one else has taken the time to call– which means for now, your competition is still overlooking this strategy.