Buying real estate by investing back taxes is the most profitable way to make money right now. Due to the high rate of foreclosures, buying real estate for pennies on the dollar has never been easier. Here’s how to get those properties by investing back taxes.

1. Skip the sales tax. Bidding here won’t do you any good – too much competition. However, the information about the tax sale will come in handy after the fact. You can research the results and see which properties other investors have carefully researched and found to be worth investing in back taxes.

2. About nine months into the redemption period, check back and see who hasn’t redeemed yet. Most states give homeowners a year to rectify the tax problem. Nine months later, the ones that haven’t probably won’t. These properties are also likely to be free and clear: If they were mortgaged, the mortgage company would have paid the taxes at that time.

3. Contact property owners. See what the deal is – most will be happy to tell you. You will find two common things: either they can’t pay and know they have to sell, or they don’t care anymore and plan to leave the property for sale. For the first group, you can negotiate all kinds of good deals to buy your property at an extremely low price.

But the second group is going to be your real diamond mine. Those who have already decided to turn the property over to the government will often be more than happy to sign their property over to you, even better if you offer them $100 for their time to sign the documents. They would rather see a small time investor get the property than “those jerks” they bought at the tax sale.

4. Decide whether to keep the property or change it. Since you only paid a small fraction of the property’s value, you can easily sell it to another investor for often thousands of dollars in profit; That way, if you don’t have the money to pay the taxes, you can still benefit from the property. . Or, if you can afford it, pay the taxes and keep the property to live in or rent.

Buying real estate by investing back taxes is really that easy when you follow the simple steps above, and the market has never been hotter than it is right now.