Back tax homes are a great direction to go in with your real estate investing business. If you’re a new investor, great- you’re about ten steps ahead of all the other beginning investors. If you’re a seasoned investor, you’ve simply got to shift your focus in this direction. There are more back tax properties available now than ever before in history, and if you want to get rich, you’ve got to throw your hat in the ring now.
You’ll see very few of these back tax homes has a mortgage, since almost every time, mortgage companies take care of tax delinquencies on their mortgaged properties to save them from winding up at tax sale in the first place! This means that there are untold profits waiting in the form of huge equities that you can get, more often than you’d think, for token amounts of money.
If you are looking to invest in back tax homes, it may seem counter-intuitive to forget the tax sale. Right? Isn’t that where you go to buy back tax properties? The answer– for novices– is “yes;” but you are going to skip all that. There’s hefty competition for the nice properties– the kind you’d like to buy– and you’ll have a lot of trouble successfully walking away with anything profitable from tax sale. The secret to investing in tax foreclosures is to get them while they’re hot– before they’ve gone to tax sale.
This investing method means contacting the owners directly. If you’re serious about investing in back tax properties, you’ll gain an advantage over your competition (although, there isn’t much of it yet) by putting aside any awkward feelings you have about contacting people in this situation and just making the call. If you call at the right time, and use the right approach, “pennies on the dollar” can come true for you. These owners are dying to get rid of their property, to leave the tax sale mess behind them, and if they don’t sell to you, they’ll walk away with nothing. They’ve truly got nothing to lose by selling their back tax homes to you– and they know it.
Truly, once you’ve made a few, the calls the the owners aren’t the hard part- it’s finding the owners that’s difficult! Why? Well, in plenty of cases, the owners of these back tax homes are absentee landlords, or people who own multiple properties and have let this one fall by the wayside, or unwitting heirs who just want to get rid of the dang thing already. Often, they don’t care that the property is tax delinquent, and probably live out of state.
What this means to you, the investor, is this: they’re people ready to get something, anything, to just make the problem go away. Obviously, they either don’t want the property anymore, or can’t afford to take care of it, and frequently they’re overjoyed to see the property go to a nice guy like, you instead of the “evil taxman.” These owners’ back tax properties are low-hanging fruit– you’ve just got to decide to contact them to get it.