If you've already figured out that foreclosure investing is the right way to make money in today's market, congratulations- you're one step ahead of most people investing in real estate. But when most people hear the term "foreclosure," they immediately think "mortgage foreclosure"- what happens when people don't pay their mortgages, and their homes are repossessed by the bank that owns their mortgage. But seasoned investors know that if you want to make money dealing with foreclosures, you've got to go after property that's in tax foreclosure- that is, property that's been seized or had a lien put on it by the government to recoup unpaid back taxes.

Unfortunately for the small investor, it's hard to compete. In most cases, you need a lot of cash, there's some SERIOUS competition, and risks galore. It all starts when you show up at the tax sale- and see a line out the door. Regardless of if you're bidding on liens or the actual deeds (it varies by state), the end result is usually the same: all the good properties get bid up to the point that they're no longer profitable. If you happen to be bidding on a lien, you'll almost always get paid off in the years it takes before you can apply for a deed. This is great if you're just looking to earn interest on your investment, but even then, there are risks. Investing in tax liens for the interest always carries the risk of ending up with a retail value property, when all you wanted was your money back with interest.

There's gotta be a better way, right?

Let's think about why it is properties end up at tax sale in the first place. The most obvious reason would be that people are under too much financial strain, and can't pay their taxes (and usually, their mortgage)... right? WRONG. Properties with mortgages almost never end up at tax sale, because due to their interest in the property, the mortgage company will come in and pay those taxes to avoid losing their claim on the property. So by the time a property ends up at tax sale, it is almost always free at clear- of a mortgage, at least. In states where tax liens are sold, sometimes mortgaged properties get tax liens, but again, they are paid off almost every time. So, occasionally lack of funds is a reason for a property making it all the way to tax sale, but usually, it's something else.

So what could it be?

I know it's hard to believe, but in many cases, the owners of these properties simply no longer want them. Perhaps it's a property they bought with the intention of using later, or renting out, and just never got around to doing it. Or they inherited it, and live halfway across the country and it's a pain to look after it. Or they are just plain tired of the responsibility of being homeowners. They either don't care, or are ready to lose their property at tax sale, and they are just waiting for YOU to come and "grab their deed"! Deedgrabbers learn to find and contact these owners and get their properties for $1000 or less most of the time... and sometimes, they'll even give them to you. You read that correctly!

There are no shortage of prospects- there are millions of tax delinquent properties spread through every county in the US! And best of all? The competition is just not there for these properties - they don't know about them. So YOU can be the first in your area to milk the "tax-delinquent property cow"!