| Looking for sound property investment advice? | | | | wait for the tax sale. |
| Look no further: buy tax foreclosures... but only | | | | Waiting for tax sale will do a few things for you. |
| after the tax auction has already occurred. If you | | | | First, it'll weed out almost all properties with a |
| didn't know that was legal, you're in the majority. | | | | mortgage. The mortgage companies will come in |
| Most investors who invest in tax foreclosures do | | | | and pay off taxes before tax sale. So properties |
| so either at the tax auction, where they bid | | | | that go through tax sale are, for the most part, |
| against many other bidders, or by contacting the | | | | free and clear. It'll also tell you which properties |
| owners before tax sale. These methods don't | | | | are desirable -- just look and see where the big |
| work. | | | | tax sale companies bid, and let them do the |
| Tax sale is not the place to get a deal anymore. | | | | research for you. |
| The competition drives bids up close to retail | | | | Then, simply wait out the redemption period. |
| value - and that's on property you can't even | | | | When there's about 2 months left, see who still |
| inspect beforehand. Then you have to wait at | | | | hasn't redeemed their property. These are the |
| least a year to be able to apply for the deed - | | | | owners that are going to sell to you for pennies |
| and who knows what's happened to that | | | | on the dollar. These owners can't pay, or just |
| property in the meantime. The soundest property | | | | don't care - and both are great prospects. They |
| investment advice you'll ever get is to avoid | | | | know they're going to let the property go, and |
| buying at tax sale. You can actually lose money | | | | they'll be glad to get a little money from you to |
| buying that way. | | | | sign over their "worthless" (in their mind) deed. |
| It's also not a great idea to approach owners | | | | Sound property investment advice? You bet. No |
| before the sale to buy directly. Many will still be | | | | other investment strategy offers the potential to |
| dealing with mortgage issues at that point, holding | | | | make as much quick cash as tax foreclosures |
| out hope they'll come up with the funds to bail | | | | that you get outside the auction. Once you get |
| out, or simply will be avoiding calls because they | | | | these deeds, you can even opt to flip to another |
| get so many of them. This is when your | | | | investor if you don't want to pay the taxes |
| competition is out in force. During this time, you | | | | yourself, and walk away with a quick $5-10 |
| just sit back, play some Xbox with your kids, and | | | | thousand. |