Today I’m answering your questions about back taxes homes for sale, and the topics I’m going to cover are:
- Houses for Sale for Back Taxes
- Tax Delinquent Homes for Sale at Auctions
- Pooling Money to Invest in Tax Liens and Deeds
- 3 Ways to Profit from Buying Tax Delinquent Properties
- Is It Risky to Invest in a Tax Delinquent Property?
- Learn More About Tax Lien and Tax Deed Investing
Want to learn how you can make big profits with tax delinquent property investing? Would you like to buy homes for pennies on the dollar? Or earn interest rates up to 36% secured by real estate? Then you won’t want to miss this FREE Mini Course.
Houses for Sale for Back Taxes
Back taxes homes for sale are in every state and are easy to find.
Local governments around the United States are serious about collecting the revenue they need. They do this through property taxes. When those taxes are not paid, then back taxes homes for sale is the result.
Can you buy a house by paying the back taxes? Yes, this is real. It is legal. It’s done regularly.
Reporting for CNN Money, Les Christie says, “When homeowners don’t pay property taxes… local governments have less money to maintain services like schools, police and fire departments and road maintenance. By selling tax liens, those governments can collect on what it is owed.”
There are two kinds of tax sales, a lien and a deed. I explain them in detail here. What’s more important than knowing what kind of sale is held, is knowing when the sale takes place, how to bid and how to invest in back taxes homes for sale.
With this kind of investing, sometimes you wind up with a house. Sometimes you wind up with a tidy profit on your investment because the homeowner redeemed the taxes.
In either case, if you pay attention to what you’re doing, you make a healthy profit. This kind of sale covers homes, condos, businesses and vacant lots. To make things simpler, I’ll just use the words house and home. Let’s take a look at how this is done.
Tax Delinquent Homes for Sale at Auctions
All these sales are auctions. Some are done in person. Some are done online. If you’re not sure what kind of sale your community has or how to find tax delinquent properties in your area, the local tax office can tell you.
If you are interested in investing in other communities, there are websites which can help find auctions.
Some delinquent property tax auctions require you to register ahead of time. Some sales just require you to show up. Regardless of how the auction of back taxes homes for sale is held, you have to attend the auction, virtually or in person, in order to bid.
If it’s an auction you can’t attend, if you can find someone you trust who can attend the sale, let them bid for you.
You’re going to need the money to pay for your bid at the end of the auction for in-person sales. Online events may allow you a couple to days to get the money to the tax office. Some might require you to wire it to the office.
Pooling Money to Invest in Tax Liens and Deeds
A lot of people wonder if they can pool their money. Absolutely. Just make sure you pick one person to handle the bidding and you all agree on what to do with the property, if you get it.
Put this in writing. If the taxes are redeemed, then the profits can be split according to who invested how much.
I have a free gift for you, a special mini course that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Get your FREE gift today.
3 Ways to Profit from Buying Tax Delinquent Properties
If you wind up with the house, there are several things you can do with it.
• Sell it. You bought it for a fraction of the fair market value. You can sell it below the market price and still make a profit. You can list it with a real estate agent and sell it. The next door neighbors may be interested in buying it from you.
• Rent it. The rental market is lucrative. A lot of people make a living as landlords. People need a place to live and not everyone can buy a house. Not everyone wants to buy a house. This does mean you have some long term maintenance responsibilities.
• Combine the two. Some people want to buy a house, but can’t get a conventional mortgage. So, you sell it to them on an installment plan and act as the mortgage company. You get a regular income and profit, and they have all the responsibilities for maintaining the property.
Is It Risky to Invest in a Tax Delinquent Property?
As with every kind of investment, there is some risk attached to purchasing back taxes homes for sale.
The risk is not repercussions from paying off the back taxes. That’s as guaranteed as anything. States need to make absolutely sure that buying back taxes homes for sale is safe because they need people to invest to collect the taxes. If it were risky, people might not do it.
The risk comes from the house you are buying. There’s no real way of knowing what the interior is like, but when you consider that you are buying it for a tiny fraction of the full value if the house in good shape, it’s a worthwhile opportunity.
Look at it this way. If the risk, even in getting a bad house, was that big, the government would take even more steps to make this kind of investing more secure.
Learn More About Tax Lien and Tax Deed Investing
We hope you enjoyed this lesson on purchasing back taxes homes for sale.
If you’d like to know more about how to get the best bargains in real estate, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
To learn more about investing in back taxes homes for sale, which are sold at public auctions for 10, 20, or 30 cents on the dollar, or learn the secrets of tax lien investing to earn returns of 16%, 18%, up to 36%, then get started today with the FREE Master Class.
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.