How to buy a very cheap property: it is easier than you think

If you’re like many of us, in this current economic climate, any property you buy is going to have to be dirt cheap, whether you’re an investor or just a savvier-than-average homebuyer looking to find a way to an agreement. Great news! Really cheap property abounds these days, and if we’re lucky, we’ll have it for a while longer, until we find what we’re looking for!

Both investors and personal homebuyers can benefit from foreclosures in this economy. When you hear the word “foreclosure,” you probably immediately associate it with “foreclosure”; people who default on their mortgage payments and eventually lose their home to the bank. With the recent subprime crisis and people borrowing more than their home is worth, you’re not likely to find real estate cheap that way. People with mortgages generally don’t have a lot of equity right now.

Luckily for you, there are also thousands of homes being repossessed for back taxes, and that’s where you can really cash in.

Why?

Nearly all properties that end up on a tax sale are mortgage free! Mortgage companies deal with tax issues so as not to lose their interest in the mortgaged property. So if a property still had a mortgage, it would never end up in a tax sale in the first place! This is where you can get real cheap property and lots of equity.

The way the government handles these properties is by selling them at monthly or yearly tax sales, sometimes by deed to the property, and sometimes by a lien on the property, which gives the lien holder the right to foreclose on a future date. Your best bet is to stay away from these sales. There is too much competition and much more money can be made by investing in an alternative way: buying directly from the defaulting owners themselves.

It sounds easy? This. The funny thing about this is that hardly anyone invests this way. You will find that you are often the first and only person to contact these owners. Typical investors often overlook the strategy, because they are often failed foreclosure investors. Investing in foreclosures is a huge headache. New investors are likely to get chewed up and spit out in just a few trades, and even seasoned investors are looking for new ways to invest. There are too many problems to deal with for it to be worth it.

The secret here is that tax foreclosure investing is nothing like foreclosure investing. As stated above, there is almost never a mortgage, leaving you alone to deal with back taxes and liens, and mortgage-free homes are often lien-free homes. And unlike foreclosure homeowners, who are often bitter and down on their luck because of their situation, tax sales homeowners are often absentee homeowners or homeowners who are simply tired of the burden of foreclosure. property. We’re talking about heirs who inadvertently inherited a faraway property, owners with multiple properties, former investors who can’t find tenants, that sort of thing.

These prospects are a gold mine. Most of the time, by the time the tax sale approaches, they are happy to hand over their deeds for a token amount, just to be done with it once and for all. Much better if you are someone who is looking for property for their family to live in, then the tax delinquent landlord will feel great about providing you with a very cheap property to use.

It’s a win-win for everyone involved.