One such resource for quick profits is the property tax sale. This is a common form of collections by individual counties in the US for people who have fallen behind in their property taxes. As you are well aware, governments are big on getting their tax dollars when they want them and as such they are willing to sell a home in return for the taxes that are owed being paid. This is where the savvy investor can make some serious money in a hurry with little or no risk involved at all.
The property tax sale is really a giant auction. Each year the county government is going to gather together a listing of all the homes that are behind in property taxes. This list is usually published in the newspaper and this gives those interested in purchasing the opportunity to take a quick look at the property before actually putting out some money. During this process you should spend considerable time working out which properties that you want to bid on.
Bidding
The minimum bid on each home that is for sale is going to be the total amount of the taxes that are owed plus a small administration fee that is applied by the county. In most cases you have the chance to get a home that is completely ready to be lived in. However, you have to remember that you are competing against other investors. You should not expect the home to sell for the minimum bid unless there is little interest in the property overall.
Time Frame
The county government that is administering the sale is going to give each of the bidders a set amount of time before the tax money is due. This is generally thirty days from the time of the sale. You will have that amount of time to pay the total amount of money that is due. If you do not pay within that amount of time then they will move on to the next bidder on the list.
Possession
The last thing that you have to remember is that you cannot take possession of the homes right away. The owner of the home has a certain amount of time to pay the taxes before they lose the home. They would actually be paying the tax amount to you and you are allowed charge a certain amount of interest or fees to make up for the money that you have put out. However, if they fail to do that then you can take possession of the home.
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