How back taxes owed on houses can make you rich

You’ve probably heard that investing in real estate is one of the best ways to get rich. This is true, but you have to really know what you’re doing, or you’ll find yourself in a lot of trouble right from the start. Don’t worry, even Donald Trump didn’t get to where he is without a little help; and he will not be your competition, if you are going to work with the back taxes owed on the angle of the houses.

If you’re going to invest in today’s economy, these properties are excellent investment material, almost always mortgage-free, which means they’re brimming with equity and ready to sell for a big profit. You can’t ignore them if you want to be successful in the years to come – there will be more and more of them as back taxes owed on houses catch up with their owners and they lose their property to tax sales.

First of all, what does this mean, “back taxes due on homes”? Well, it’s simple. When a homeowner doesn’t pay his taxes and falls behind, his home will be delinquent in the county in which he lives. It differs from county to county, but sometime within a few years, typically, if homeowners are unable to come and pay back taxes owed on their homes, then the county will foreclose and liquidate the properties.

Liquidation occurs in one of two ways: the deed to the property is sold or a lien on the property is sold. Sometimes this is done by auction, other times by lottery, and other times by rotating shifts. It can happen in different ways, even within the same state. It is a very competitive way to get property. Buying tax liens or deeds has become very popular, and with the rise in popularity has come a sharp decline in the profits made that way.

You will avoid all of that. If you want to make money on back taxes owed on homes, you’ll need to stay one step ahead of tax sale investors and get the deed to the property before the auction, without bidding, or after the auction, at the redemption period where the owner can still redeem their home (usually about a year).

As?

Well, it’s surprisingly simple, and yet if you pay attention, you’ll see that hardly anyone does this. Because? Maybe they are antisocial. They may feel guilty about getting involved in other people’s business when they are “down on their luck.” Maybe they are just chicken.

What am I referring to? Simply by contacting the owner and dealing directly with him.

Let’s say it again: you can get rich invest in back taxes owed on homes, but only if you can be sure that the property will be yours once you pay those taxes. The way to do this is to not bid on the deed or a lien at the auction; the owner can still go back and pay that, and get his deed back from under you. The only way you will be able to invest in such secured properties is if you deal directly with the owners.

It may seem counterintuitive to you, but you’ll be surprised how often these homeowners are happy to hear from you. By the time the tax sale gets underway, these homeowners are desperate to get out of tax delinquency, and will be primed and ready to sell to you for pennies on the dollar. You’ll also find absentee owners and heirs who inherited unwanted property just dying to get the load off their shoulders and sell it to you for a few hundred or thousands of dollars.