Buy Delinquent Tax Homes, and You Could Make $100,000 This Year
If you learn to buy delinquent tax homes the right way - after the tax sale - you could easily make $100,000 this year.
That's even if you only have a few thousand (or as little as a few hundred) dollars to get started with.
Here's how to buy delinquent tax homes and flip them for thousands in profit.
1.
Find out how long the redemption period in your state is.
Most states give owners a year to bail out their taxes, but in a few states, there is no redemption period.
If there is no redemption period in your state, you'll follow the same steps below; your time frame to do your research and buy tax delinquent homes will simply be before tax sale (in these states only).
2.
After the tax sale, check to see which properties got bid up to high selling price.
This will tell you that these properties were deemed to be the best properties by seasoned tax sale investors and tax sale investing companies.
It will also tell you which properties are trash.
3.
Wait until a few months before the end of the redemption period, and check to see which of the owners on your "good properties" list has still not redeemed their property.
Owners that haven't redeemed by this point generally won't.
Some can't pay the taxes, but others have simply chosen not to.
4.
Contact these owners, and find out what they're planning to do.
If they fall into the group that can't pay the taxes, they need to sell, and sell fast.
You can negotiate a very low buying price, or make a deal with them to sell to you for very cheap ($100) plus some of the proceeds whenever you are able to sell their property.
The second group, the owners who have decided to just let the property go, are your best prospects.
They don't even care about the property anymore.
Ask them, since they've already decided to give up the property, if they'd mind deeding over the property to you, so you can see if you can do anything with it before it's lost.
You'll be surprised at the "yes" rate from these owners! 5.
Make your profit.
You can do one of two things once you've gotten a yes: you can pay off the back taxes and sell the property for as close to retail as possible (fixing it up, if you like), or you can quickly flip the property to another investor, before you've even put the deed in your name and paid the taxes.
You do this by pricing the property low enough that you walk away with a hefty profit, but that also ensures that you'll sell the property within a few days.
This is the only surefire way to turn a profit right away.
Any other method will involve either a lot of money, or a lot of time.
If you've got $500 in the bank and a real desire to hit the ground running with real estate, buy tax delinquent homes after the tax sale.
That's even if you only have a few thousand (or as little as a few hundred) dollars to get started with.
Here's how to buy delinquent tax homes and flip them for thousands in profit.
1.
Find out how long the redemption period in your state is.
Most states give owners a year to bail out their taxes, but in a few states, there is no redemption period.
If there is no redemption period in your state, you'll follow the same steps below; your time frame to do your research and buy tax delinquent homes will simply be before tax sale (in these states only).
2.
After the tax sale, check to see which properties got bid up to high selling price.
This will tell you that these properties were deemed to be the best properties by seasoned tax sale investors and tax sale investing companies.
It will also tell you which properties are trash.
3.
Wait until a few months before the end of the redemption period, and check to see which of the owners on your "good properties" list has still not redeemed their property.
Owners that haven't redeemed by this point generally won't.
Some can't pay the taxes, but others have simply chosen not to.
4.
Contact these owners, and find out what they're planning to do.
If they fall into the group that can't pay the taxes, they need to sell, and sell fast.
You can negotiate a very low buying price, or make a deal with them to sell to you for very cheap ($100) plus some of the proceeds whenever you are able to sell their property.
The second group, the owners who have decided to just let the property go, are your best prospects.
They don't even care about the property anymore.
Ask them, since they've already decided to give up the property, if they'd mind deeding over the property to you, so you can see if you can do anything with it before it's lost.
You'll be surprised at the "yes" rate from these owners! 5.
Make your profit.
You can do one of two things once you've gotten a yes: you can pay off the back taxes and sell the property for as close to retail as possible (fixing it up, if you like), or you can quickly flip the property to another investor, before you've even put the deed in your name and paid the taxes.
You do this by pricing the property low enough that you walk away with a hefty profit, but that also ensures that you'll sell the property within a few days.
This is the only surefire way to turn a profit right away.
Any other method will involve either a lot of money, or a lot of time.
If you've got $500 in the bank and a real desire to hit the ground running with real estate, buy tax delinquent homes after the tax sale.