When it comes to buying tax lien properties, there's a right way and a wrong way.
The wrong way is attending an auction with potentially hundreds of other people, and trying to get a good deal bidding.
The right way is waiting until a strategic point in the tax sale process, and then buying directly from the owners.
If you've ever tried buying mortgage foreclosure property you may be feeling a little resistant to the idea of dealing with owners.
Mortgage foreclosure owners can be extremely hard to get in touch with and work with.
Delinquent owners of tax lien properties, on the other hand, can be some of the most motivated, easiest to work with sellers in the business - as long as you wait until just before the property is about to be lost forever.
This would be after the tax sale, during the year or so long redemption period most states allow for owners to pay the taxes.
The reason they're so motivated, obviously, is because it's do or die time.
Before the tax sale, many owners still are delusional about what's happening.
By the time the final foreclosure date is 2-3 months out, they'll be singing a different tune.
Don't have a lot of money to get started with? You'll find there are all kinds of deals you can make with these owners to purchase their deeds for as little as a few hundred dollars.
Another secret stemming from tax lien properties: the overages they create.
When more is bid at tax sale than is owed in taxes, the overage is usually held for the original (tax delinquent) owner.
Sadly the notices sent out to the owners to let them know about the overage often just get sent right back to the address for the property that got sold, and the owner never finds out about it.
After a while, that money escheats permanently to the government and the owner is out of luck.
That's where you come in (and this is another great way to break into the field even if you have very little money to start with).
Since these funds fall outside the state laws for finder's fee limits, you can charge 30, 40, 50% for your information and assistance to these owners.
They're being created at a speedy rate with all the foreclosures happening right now; there's never been a better time to start collecting overages and/or buying tax lien properties than right now.
The wrong way is attending an auction with potentially hundreds of other people, and trying to get a good deal bidding.
The right way is waiting until a strategic point in the tax sale process, and then buying directly from the owners.
If you've ever tried buying mortgage foreclosure property you may be feeling a little resistant to the idea of dealing with owners.
Mortgage foreclosure owners can be extremely hard to get in touch with and work with.
Delinquent owners of tax lien properties, on the other hand, can be some of the most motivated, easiest to work with sellers in the business - as long as you wait until just before the property is about to be lost forever.
This would be after the tax sale, during the year or so long redemption period most states allow for owners to pay the taxes.
The reason they're so motivated, obviously, is because it's do or die time.
Before the tax sale, many owners still are delusional about what's happening.
By the time the final foreclosure date is 2-3 months out, they'll be singing a different tune.
Don't have a lot of money to get started with? You'll find there are all kinds of deals you can make with these owners to purchase their deeds for as little as a few hundred dollars.
Another secret stemming from tax lien properties: the overages they create.
When more is bid at tax sale than is owed in taxes, the overage is usually held for the original (tax delinquent) owner.
Sadly the notices sent out to the owners to let them know about the overage often just get sent right back to the address for the property that got sold, and the owner never finds out about it.
After a while, that money escheats permanently to the government and the owner is out of luck.
That's where you come in (and this is another great way to break into the field even if you have very little money to start with).
Since these funds fall outside the state laws for finder's fee limits, you can charge 30, 40, 50% for your information and assistance to these owners.
They're being created at a speedy rate with all the foreclosures happening right now; there's never been a better time to start collecting overages and/or buying tax lien properties than right now.
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