If you want a more secure future, start building a real estate portfolio – and you’ll want to start with tax foreclosures. Even a brand-new investor can make a ton of money investing in tax property the right way. Here’s how to get tax property for $200 or less, outside the auction.
1. Don’t try to bid at the auction. Most properties at tax sale sell for close to retail value. Between new bidders and large tax firms, good properties almost always sell for close to what they would on the market. Plus, you can’t inspect them first – too risky. A property may look okay on the outside and be a disaster inside. Obviously, this isn’t a good way to invest. You’ll get your properties by going around the auction instead.
2. About 10 months after the tax sale is when the property is about to be lost forever. Act now. The properties remaining at this point are usually free of a mortgage. The rest of the owners can’t, or don’t want to pay their taxes. Owners at this stage of the game will be easy to buy from.
3. Find the owners of these properties. Put their names into Google – you’ll be surprised how much info you find. If at all possible, search for their phone number. You can always contact them through Facebook, but a phone call is better.
4. Ask the owner about the situation with the deed. Pay them $200 for their time to sign the paperwork. Most owners are glad to have the deed out of their name sooner, so you’ll get a lot of “yeses.”
5. Decide what you want to do with the property. If you’ve decided to keep the property, get the tax situation taken care of as soon as you can. Or let another investor buy from you and pay the taxes – you can still make thousands this way. Use this technique, and make six figures in real estate in your first year. Strike while the iron is hot – the foreclosure rate has produced a huge number of foreclosures for you to go after. Click here for more info
