Even if you don’t have a lot of money to invest, there has never been a hotter time to get into real estate investing. Here’s how to buy houses for back taxes owed with less than $200.
- Don’t even think about attending the tax sale! Competition is too fierce at tax sale to get any good deals – plus, you have to come up with your whole bid in cash. Not only that, but you can’t inspect the property first. You can buy houses for back taxes owed without attending tax sale, and that’s what you’re going to do.
- Check the results of the tax sale after it’s occurred. This is an easy way to weed out worthless properties – those without any bids won’t be worth your time. The ones that got lots of bids, you’ll know are nice properties.
- Wait until several months are left in the redemption period, and check again. See who still hasn’t redeemed their property. If they haven’t by now, they probably aren’t going to. Also, by now, most properties that are left are free and clear. Those with mortgage companies will have been bailed out by now.
Also, at this point, you’re not going to have much competition to buy houses for back taxes owed. Most competitors have moved on this late in the game.
- Contact the owners who still haven’t redeemed. Ask them what their plans are. Most owners at this point are resigned to (or don’t care about) letting the property go. These owners will be your best prospects.
- Ask the owners if they’d mind signing their deed over to you. Since they’re going to let it go anyway, ask if they’d allow you to see if you can do anything with it. Offer to pay them a few hundred dollars for their time. You can even be honest with them if you like – let them know you’re trying to start investing in properties but are broke. What have you got to lose?
You’ll be amazed at the positive response. People like to see their property go to the ” We Buy Houses Franklin WI” instead of the government.
- Flip the property to another investor – or if you can, pay the taxes off and keep the property. With so little invested, the world’s your oyster. You can flip for way below market value to another investor and still walk away with thousands in profit in your pocket.