Tax Distressed Properties
Tax distressed properties are an excellent investment if you are looking to make money fast. Flipping homes is a great idea and big way to make money on tax distressed properties. Many investors are buying up homes right now and you can actually get in on the action too. It is easy to do and the profits can be phenomenal if you choose one of the foreclosure properties wisely.
Tax foreclosures are owned by the lenders and they look bad on the bank's books. The bank wants to get rid of them right away and they will do almost anything to get cash for them. The good thing to know is that a bank is willing to get whatever they can in cash for foreclosure properties. This means that lowball them on the initial bid of any of the tax foreclosures you consider buying. You want to take the price down at least 40%. This is a good starting point and then the two of you can negotiate the price higher.
Banks will work with you to buy tax distressed properties if they think you are a serious potential buyer. If you have been approved for a loan or you have cash then your negotiations will be taken seriously. They are willing to drop the price and some investors have been able to get the banks to drop a price on a house as low as 50%. Dropping the price not only increases your profit but it gives you more to work with when it comes to repairs on the home.