What to Do With Your $200 Tax Delinquent Property Once You’ve Got It

What to Do With Your $200 Tax Delinquent Property Once You’ve Got It

You’re a smart investor, and you’ve probably learned by now that you should buy tax delinquent property outside the tax auction. What can you do next to make a lot of money from it? There are tons of options – here are a few of the best, including a secret tip only the pros have figured out.

 

Need your profits immediately? Sell – before you have to pay the taxes – and you can take your money to do more deals. Set the sales price for your tax delinquent property at 50% of the market value (or less, depending on how much the taxes are). This will attract an immediate buyer – probably another property investor.

(This is what you want!) The new buyer knows up-front that they are responsible for the taxes – you factor them into your low selling price. You’ll make a nice profit, just a bit smaller than if you had paid the taxes and sold for higher.

Keeping the property? Once you’ve decided to keep tax delinquent property, you should take care of the tax issue first thing. Use the property for a rental – or live in it yourself! You can take out a mortgage on the property and use that money to finance other deals – and if you’re renting, use the rent to make the payments.

You can also opt to sell for market value. Give the property a nice once-over first.

Want to do both? It’s not only possible – it’s a little-known technique most successful investors use with their tax delinquent property. You have to have pretty good credit and income today to get a mortgage. Lots of folks would love to buy, but can’t the traditional route. If you’re willing to offer to finance the property for them, you’ll open yourself to a world of buyers that didn’t exist before.

Offer a low down payment that covers your investment costs, plus maybe a couple thousand in profit, and then take monthly payments. Now each month you have free money coming in… not too shabby.

There are tons of things you can do with tax delinquent property, and those are just a few. Because of the housing slump, there’s a ton of opportunity for you out there, so decide what to do and move on to your next deal quickly!

By Robert Holiday

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