buying tax sale properties to flip?

Question

how does one find properties to flip? i've heard of tax sale properties but does anyone know how to do it/research it? i'd like to flip a home but in callie there doesn't seem to be very many foreclosures. thanks

Answer 1

Tax sale properties are not really the properties you are looking for. When a county has a tax sale, investors bid on the taxes due. Instead of bidding up, they bid the interest rate down. For example in Arizona the default interest rate on past due taxes is 16%. Every month that is not paid, interest is accrued. Usually about 12-18 months after the taxes were due, they will auction tax notes. The average is about $1,000. Investors will then pay this amount in cash to the county, and hold the note. In Arizona, you can not foreclose on the house with past-due taxes until three years after the purchase of such note.

Investors do not bid on tax sales in hopes of acquiring the properites, they do it for a secure investment of 1,000 at 10-12% interest. It is always the first lien on the property to be paid off in a sale, and who would let their house go to foreclosure for a 1,000 tax bill?

Buyer Beware: Do research the property you are bidding on, in case you DO become the owner in 3-10 years. Commercial Gas Stations and such stopped paying their taxes because it was too costly to clean up contaminated waste. If you are the new owner, EPA will be knocking on YOUR door to clean it up!

Answer 2

I live in California there are lots of foreclosures here in the Golden State. There are several ways to find them you have to decide which method you want to use.

#1 Purchase a list of pre-forclosure from a list broker

#2 Go to the county court house to find them yourself

#3 Advertise in your local newspaper that you purchase foreclosues

#4 Direct mail to a select area in your city (Normally about 5000 to 10000 homes) indicating that you are in the business of purchasing foreclosures.

Tax sales are pretty good even though I have not personally conducted one.

I understand that you pay the county taxes current. After a certain time if the home owner does not bring them current the county does the foreclosing for taxes only. If the taxes are paid you get interest on the amount you invested,if not you get the house or what ever was owed back taxes on.

There are several books you can purchase on buying and flipping properties. You will find them at your local book store. You need to purchase several of them so you will have a working knowledge of the business you want to go into. You might also find a few of these books in your local library.

You might also purchase one of the TV gurus programs. They offer you a few legal forms that you may need to write offers. They will also have some scripts you can use when speaking with potential clients.

They will further give you some idea about how to figure out when you have found a property that you can make an offer on so as to make a profit.

I hope this has been of some use to you, good luck.

"FIGHT ON"