Buying Property for Back Taxes - Investing In Tax Defaults Without The Need For Tax Sale Auctions

Consider yourself a smart investor, if you're interested in buying property for back taxes. Back taxes property is the most profitable of all the types of property you can buy. However, as more people find out about this investing method, these tax sales are getting too crowded with competing bidders. It's getting extremely difficult to get good deals anymore. If you want to be successful, here's how you can buy property for back taxes, without competing against other bidders at the tax sale auction.

Out of the many reasons why you would want to stay away from auctions, a primary one would be that you can't inspect the property first. Think about it. If you couldn't inspect a property first, would you ever consider living in it? I didn't think so. A property that may have extensive problems you don't know about is not what most would call a "safe investment". This alone should be enough of a deterrent to pursue alternatives to tax sale investing.

Here's what the old veteran REI guys have been doing for years...

They exclusively use a "loophole" strategy that allows them to exploit properties for profit - before they end up in the auctions. It's a very logical technique: after the property has already been sold at tax sale, they buy it directly from the owner. This way they know what they're getting before they buy it, and it's the only surefire way to get the property for back taxes.

As you may already know, you can legally (in most places) pay off the tax bill on the property during a specified redemption period. However, most owners are so emotionally exhausted from dealing with their money problems that they're pretty much ready to move on. It is during this time that the savvy investor can make an offer to take the house of their hands for a modest fee. It is not uncommon to offer $200 to $500 for the deed, and the owners are more than happy to do it. Now the house is yours. Simply pay off that tax bill and you've just got yourself a healthy return on your money.

But it even gets better than that...

During the auction period, houses will be sold by the state for amounts well above their tax default amounts. These overbids often run into to tens of thousands of dollars and are legally due to the owners who have lost the property. Unfortunately, many times the owners are long gone and are not aware of the overages owed to them. So this becomes yet another golden investing opportunity for you to exploit.

If you can find the owners who have overages owed to them, and help them collect their money, you can charge up to a 50% finder's fee for your service. It's perfectly legal, yet not very well-known. The reason why it's a highly guarded secret is because the government gets to keep this money if it is unclaimed for an extended period of time. So as you can see, there are a handful of crafty little tricks you can use to make some serious money with tax sale auctions.

The current foreclosure rate won't last forever - take advantage of it now.

Learn the "magic words" to say to owners to get deeds for $200 or less. For a limited time, get a free e-book at http://DeedGrabber.Org

Want real-estate-sized paydays without owning property? You need to read about tax sale overages right now, before you do anything else.