Finally! You’re not at another LAME tax sale site like you’ve seen a million times before – here you’ll discover all of the hidden opportunites that present themselves:

  • WAY before a tax sale
  • RIGHT before a tax sale
  • AT a tax sale
  • and yes, AFTER a tax sale occurs – even if you don’t walk away with a property from the sale.

We Speak a Different Language Here at RealEstateTaxSale.net…

There are so many real opportunities to make money with tax sales, it would be pointless to tell you the usual lies like:

  • “Tax liens are guaranteed by the government – so you have NOTHING to lose!”
  • “You’ll be able to buy BEAUTIFUL houses (some brand new) from tax sales, free and clear, for a few hundred bucks”
  • “It’s easy to make 16% or more on your money if you just invest in tax liens (was that another way of saying the first lie?)”

Got Cash?

You’ll need some if you want to use a couple of these strategies. If not, you’ll just use the other strategies for now, which require little or no cash.

Personally, I stick with the low and non-cash strategies 99% of the time. Putting a lot of cash at risk with real estate today is really sort of foolish – too unpredictable.

Plus, I’ll just admit it – I HATE losing money. Spending it can be fun. Losing it is not.

There are 9 strategies for making money from tax sales. Only a few are conventional.

I’ll do an entire article on each – but here they are in a nutshell:

‘Before the Tax Sale’ Strategies

#1 Deed Mining: I credit my friend Mitchell Goldstein with coining this term. We’ll start with ALL tax delinquent properties in a county and narrow down that huge list to those most at risk of reaching the final stages of tax foreclosure. We’ll take full advantage of the long length of time we have available before the property goes to foreclosure to do almost any kind of deal that makes a profit.

#2 Deed Grabbing: DeedGrabbing is always a thrill. We’ll look at the relatively small list of owners who are down to their last couple months, weeks, or even days before they lose their property to the tax sale. Something must be done now – and the owner knows it. We’ll offer a small amount of cash and often that will be his best option. Or we’ll line up a cash buyer to immediately flip our deals to if we’re cash-poor or a few hundred bucks won’t cut it for the deed.

‘At the Sale’ Strategies

#3 Buy Tax Liens for their High Interest Return Hey, I’m not a Communist – earning 10% – 30%+ on your money, especially today, is a great thing. Especially with an investment like tax liens where the high return is fixed and you have some control over how well you buy the asset. Just make that interest adds up to something – 16% of almost nothing is almost nothing! There are certain fixed costs to tax lien investing, and they can be significant.

#4 Buy Unusual Properties at Tax Deed or Tax Lien Sale: It doesn’t take a genius to see a pretty house on a tax sale list for $5,000. Rest assured, that property will be redeemed or bid far above the minimum value. Hidden gems like billboards, railroad easments, and other “oddballs” are favorites of the savvy investor.

#5 Buy Tax Liens to Get Cheap PropertyIf you carefully buy tax liens against valueable property, you will be redeemed 96% of the time or more – meaning you’ll get some interest but no property. Want to increase your chances of a property? Follow my instructions in #1 and #2. There will be a handful of properties where you get returned mail, and the owner is deceased or otherwise completely vanished. Buy THOSE tax liens and watch the odds flipflop in your favor.

#6 Sweat Equity Investor Method Team up with an investor who would love to earn tax lien rates of return, but doesn’t want to deal with the hassles of the tax lien sale. You do all the work, they get all the interest on liens that pay off. But if a property is obtained, it’s yours for cost. Properly bought tax lien properties, while rare, can be windfalls – and the more investor money you have working, the sooner one will come your way.

#7 Second Chance Sales Many properties do not sell at the first tax sale at which they’re offered. Be on the lookout for the county to offer these properties again with much more favorable terms. You may find the price slashed 90% or more, and the wait time to get title drastically reduced. I’ve obtained several rented houses for under $5,000 by buying these tax liens and waiting only 120 days for ownership.

After the Sale Methods

#8 Overages on Properties You Just Purchased Did you buy any properties before the tax sale as I just showed you? In many states, a bidding war can happen at the tax auction. If you purposely fail to pay the property taxes on a property, allowing it to go to a tax deed sale, you may be eligible to collect any extra funds received by the county above and beyond the taxes owed. You’ll lose the property, but there could be a fistful of cash waiting for you to claim almost immediately.

#9 Hooked on Overages The same scenario in #8 happens to thousands of Americans each year. Their property is sold at a tax sale for more than what they owed in taxes, and that excess amount is now available for them to collect.

The problem? They don’t know it! You can obtain lists of funds on hand with counties for tax sale overages and earn a finder fee of 40% or more for reuniting it with its rightful owner. These amount routinely reach $20,000, $50,000, even over $100,000. The most a student of ours has collected on a single deal is $178,000.

I’m a Bad Liar

The truth can be stranger than fiction – and that is certainly the case with tax sales. So that makes it easy for me. Stay tuned for a full post on each of these tax sale profit models – and please – don’t fight over the scraps with others at tax auctions!

{ 0 comments }