Everyone has to start from something small. In the Tax Delinquent Investment Business, it would be wise to start out small during the beginning.
On purchasing tax delinquent properties you’ve decided to focus more on lower dollar value properties. This is great since, the lower the value of the property the lower it’s back taxes are, and adding up both won’t get you off your budget.
Usually the Assessed value is a percent of the actual market value of the property. If they say that the assessed value is 5% of the actual property and that 5% is at $500 then the estimated property value would be $10,000. Basically you would want to focus on delinquent properties that are assessed at perhaps $50 to $500. Eliminate the higher dollar values because chances are all of those are going to get redeemed and that’s not what you’re looking for. Remember you’re on a budget and its best to stick to it.
After eliminating properties with high and very low assessed values, next thing to do is to get the addresses of all the property owners that are on that list. You would want to know if the owner lives in state or out of state. If the owner lives nearby chances are they’re not that willing to give up the property soon but are just waiting out for the right deal, which is high as they would hope. But if they leave out of state, most likely they show little interest on the property and are willing to give it up.
Sometimes counties send letters to property owners who weren’t able to pay their property taxes and if they send it out to a bad address or the owner doesn’t respond to such letters, the county put a mark on these properties. You can ask the county for that list if they have one.
Out of state owners are those you have to put your eye on because they are the ones who are more than willing to let their properties go. The sooner they want to get rid off their properties the cheaper the deal you’ll be getting. Most of all, you get to stick to your goal and budget.
They say that all good things come from small packages. In Tax Delinquent Investing, starting out small and doing it right will eventually lead to great things. It would be advisable to start small and spend more time to master the craft in the beginning. The great package will come later as a result of all your invested hard work.