Auction Overages Are Profit Making Machines for Real Estate Investors
Real estate is a phenomenal investment, and anyone can get a piece of the action – regardless of their financial status. The key to success in real estate is knowing secrets to auction overages, and how and when to buy them. Even better news? The best type of property to make a ton of money on is cropping up everywhere in the last few years: tax property.
A guess: you’re wondering why not to just go to tax sale, and buy property there. The competition makes it a waste of your time, bidding everything up to close to market value. Not only that, but you have to come up with all the cash for your bid right then and there, if you do win. It’s futile, even if you do get a deed: the owners have a year to pay off, and usually do.
You’re still going to be able to get great deals on tax property – just a different way. Wait out most of the redemption period, and then approach the tax delinquent owners at that point, and that point only. Most of these owners are going to just let the government have the property.
These owners’ properties will be easy to purchase. Many times these properties are ones that were willed to an unhappy heir, that lives somewhere else or just doesn’t want the responsibility. They’re already letting the property go, so ask them if they’d mind signing over the deed to you. Tell them it’ll only take a few minutes to sign the paperwork, and you’ll pay them $200 for their time. Then, just pay the taxes and you’re the new owner! Or, price it low and sell it right away for thousands in profit.
This is, by far, the easiest and cheapest way to get tax property. Has there ever been a better time to get started? Don’t put it off another day.
One more BIG tip before you go… in about half the states in the U.S., when someone bids more for a property than is owed for taxes, those auction overages amounts are held for the owner to come in and collect. But the former owners are often unaware of this! Typically, they no longer live at the property – so they miss the government notices to come and get the funds. And guess what happens next? If they don’t collect it in time, the government gets to keep it.
But all is not lost. Since this money is held at the local level, state money finder laws don’t apply (usually). That means that you can charge 40-50% as a finder’s fee for reconnecting these owners with their funds. And since these auction overages are often for high amounts, you can easily make a huge income from them.
