Profiting From Tax Foreclosures - Why You Shouldn"t Feel Guilty About It
If you're thinking about getting into the field of foreclosures investing, whether you want to buy tax foreclosures or simply make money from finders fees on tax sale overages, you've almost definitely run into someone, or many people, who have tried to make you feel like a jerk for "profiting off of others' misfortune.
" These people are fondly referred to as "haters," and you shouldn't listen to them.
Here's why.
1.
"Profiting from the misfortune of others" is a misnomer in this case.
The person losing his property due to non-payment of taxes is going to lose his property regardless of if you profit off it or not.
When you purchase a property at tax sale, you are purchasing a property from the government.
It's not as if the homeowner gets to stay in the home if no one buys it.
2.
In many cases, you can actually help the tax delinquent owner by buying his property.
Many buyers continue to hold onto property well after they should have found a way to bail out.
By waiting until last minute, they stand to lose everything.
If you step in and offer to buy, yes, you'll get a good deal and probably profit from it.
But you also allow the owner to walk away with something.
3.
The people you deal with when buying tax foreclosures are not, for the most part, little old ladies who will be thrown out on the street come foreclosures time.
They are people like you and me, who made bad financial decisions that resulted in their property going to tax foreclosure.
They made their bed; now they're lying in it.
They've all had the chance to sell their properties to get out of debt, chose not to, and the consequence is that now the property is being sold to you.
The worst example of "haters" is people who act judgmental about collecting finder's fees for tax sale overages.
Since these finder's fees often are 30-50%, everyone wants to scream about how unfair that is.
The truth is, it's hard work finding records, locating owners and dealing with the government to get the money released.
And without money finders, these owners would never even know about the money in the first place.
Let's be clear.
People who make you feel guilty for profiting from tax foreclosure are negative energy suckers who like to complain more than they like to take action to improve their own financial situations.
These types of people talk without knowing much about what they're saying, and they have a way of getting under your skin.
Ignore them, and go through the experience for yourself.
You'll find owners of tax property to largely be grateful when you buy their property, and especially when you reconnect them with their (time-sensitive) overages - which can be $10,000, or much more.
" These people are fondly referred to as "haters," and you shouldn't listen to them.
Here's why.
1.
"Profiting from the misfortune of others" is a misnomer in this case.
The person losing his property due to non-payment of taxes is going to lose his property regardless of if you profit off it or not.
When you purchase a property at tax sale, you are purchasing a property from the government.
It's not as if the homeowner gets to stay in the home if no one buys it.
2.
In many cases, you can actually help the tax delinquent owner by buying his property.
Many buyers continue to hold onto property well after they should have found a way to bail out.
By waiting until last minute, they stand to lose everything.
If you step in and offer to buy, yes, you'll get a good deal and probably profit from it.
But you also allow the owner to walk away with something.
3.
The people you deal with when buying tax foreclosures are not, for the most part, little old ladies who will be thrown out on the street come foreclosures time.
They are people like you and me, who made bad financial decisions that resulted in their property going to tax foreclosure.
They made their bed; now they're lying in it.
They've all had the chance to sell their properties to get out of debt, chose not to, and the consequence is that now the property is being sold to you.
The worst example of "haters" is people who act judgmental about collecting finder's fees for tax sale overages.
Since these finder's fees often are 30-50%, everyone wants to scream about how unfair that is.
The truth is, it's hard work finding records, locating owners and dealing with the government to get the money released.
And without money finders, these owners would never even know about the money in the first place.
Let's be clear.
People who make you feel guilty for profiting from tax foreclosure are negative energy suckers who like to complain more than they like to take action to improve their own financial situations.
These types of people talk without knowing much about what they're saying, and they have a way of getting under your skin.
Ignore them, and go through the experience for yourself.
You'll find owners of tax property to largely be grateful when you buy their property, and especially when you reconnect them with their (time-sensitive) overages - which can be $10,000, or much more.
