How to Buy Very Cheap Property
- Article posted by Editor
If you’re in a situation that is similar to many of us out there, in this current economic climate, any property you buy is going to have be a very cheap property.
This is the case regardless of whether you’re a seasoned property investor, or just a smarter than average home buyer looking to find a way to get a deal. Great news! At the present time, very cheap property abounds– and if we’re lucky, will for a while longer, until we find what we’re looking for!
Investors and personal home buyers alike can benefit in this economy from foreclosures. When you hear the word “foreclosure,” you probably immediately associate it with “mortgage foreclosure;” people who default on their mortgage payments and eventually lose their home to the bank. With the recent sub-prime mortgage crisis, and people borrowing more than their homes were worth, you’re not likely to find very cheap property that way. People with mortgages just don’t generally have a lot of equity right now.
Luckily for you, there are also thousands of homes being foreclosed on for overdue tax payments– and that’s where you can really cash in.
Why?
Almost all properties that end up at tax sale are free from a mortgage! Mortgage companies take care of tax issues in order to keep from losing their interest in the mortgaged property. So if a property still had a mortgage, it would never end up at tax sale in the first place! This is where you can get very cheap property, and lots of equity.
The way the government handles these properties is by selling them at monthly or yearly tax sales– sometimes for the deed to the property, and sometimes for a lien on the property, which affords the lien holder the right to foreclose at a future date. Your best bet is to stay away from these sales. There’s too much competition, and you can make a lot more money investing an alternate way– by buying directly from the tax delinquent owners themselves.
Sound easy? It is. The funny thing about it is, almost no one invests this way. You’ll find you’re often the first and only one who’s contacted these owners. The strategy is often overlooked by typical investors, because often, they are failed mortgage foreclosure investors. Mortgage foreclosure investing is a major headache. New investors are likely to get chewed up and spit out within a few deals, and even seasoned investors are looking for new ways to invest. There are just too many problems to deal with to make them worth the while.
The secret here is that tax foreclosure investing is almost nothing like mortgage foreclosure investing. As stated earlier, there’s almost never a mortgage, leaving you only to deal with the back taxes and liens– and mortgage free homes are often lien-free homes. And unlike mortgage foreclosure owners– who are often bitter and down on their luck due to their situation– tax sale owners are often absentee owners or landlords who are just plain tired of the burden of ownership. We’re talking heirs who unwittingly inherited a far away property, owners with multiple properties, former investors who can’t find tenants– that sort of thing.
These prospects are a gold mine. More often than not, by the time it gets close to tax sale, they are glad to hand over their deeds for a token amount, just to get it over and done with and out of their hair. All the better if you’re just someone who’s looking for a property for their family to live in– then the tax delinquent owner gets to feel great about providing you with a very cheap property for you to actually use.
It’s a win-win for everyone involved.
This little-known method of investing in tax foreclosure properties is known as “deed grabbing” amongst the small number of real estate investors that practice it. It’s not difficult to do, and best of all, due to the current economic climate, there are more tax foreclosures than ever before, and will likely continue to be for some time.
About The Author
Maggie Dawson is a respected writer on all topics relating to real estate investing and building wealth through property. Learn insider deed grabbing strategies from this *free* report: “5 Days to Getting Tax Delinquent Property for $200 or Less”, visit http://DeedGrabber.net now. Or, get the free Insider’s Guide to making money with the tax overages from this property. Click here: http://Tax-Sale-Overages.com
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