Real estate investment is part of every wealthy person's portfolio. But to be as successful as possible, you'll need to know the right properties to buy – before you make a bunch of mistakes. The best opportunity for making money in real estate comes from foreclosures, and of those, back tax foreclosures win hands-down. This is why.
Reason numero uno: the mortgage! Mortgage foreclosures always have them. Back tax foreclosures do not. Taxes are usually paid by the mortgage company, and they do not stop paying even if you quit paying your mortgage – otherwise they'll lose the property too. So most tax properties that make it all the way to tax sale are owned outright. You can make a lot of money from this type of property, if you get it cheaply enough.
So what's the second big reason back tax property is the best investment? Price. Got $ 1000? You can buy yourself a tax property, if you know what you're doing. You will not get a bargain on mortgage foreclosures. Even if they have a lot of equity you still have to come up with all the cash to deal with the back mortgage payments.
If you're not familiar, you're almost certainly wondering how you get back tax foreclosures for so little. If you were thinking "tax foreclosure auction," you're wrong! Because there's a lot of competition at tax sale, it's very difficult to get a good deal bidding on tax property there. You'll get property for a fraction of the price you'll pay at tax sale if you wait until after the tax sale to buy it.
If you wait until the very end of the redemption period, you will find a set of owners you definitely want to buy from. The owners in question are those that have no intention of redeeming. In fact, they're letting it go so they do not have to deal with it anymore. They're looking forward to the day the deed is no longer their problem, so ask to take it off their hands and offer a few hundred dollars for their time.
Mortgage foreclosures just can not compare to back tax foreclosures, especially when you use this insider technique. You can be just as successful investing in back tax foreclosure property as anyone else out there. There are so many properties out there in tax foreclosure that you'd be foolish to put it off any longer. Now's the time!