You may not have heard of Hybrid Tax Investing before.
It's not available in all states, but in the places where it is permissible, you have a golden opportunity to make some serious cash.
Before you begin though, you need to learn the ropes to ensure you make the best investments.
Hybrid Tax Investing is Win/Win As with Tax Deed Investing and Tax Lien Investing, the first thing to do is find a decent property that is selling due to tax default.
You also want to make yourself aware of which type of investment is allowed in the state that the home or lot is in.
When you purchase the deed to a property that is being sold for back taxes, that property belongs to you, just as it would normally.
With a Hybrid transaction, the former owner still has the opportunity to pay off his debt with added interest and penalty fees.
If the previous owner manages to settle the bill, the ownership of the property reverts back to the person you bought it from.
If that happens, then you receive your original investment plus a profit of all the interest and penalties.
There is nothing for you to do but wait for your cheque and cash it.
The government takes care of all the billing, collecting of monies and delivering the funds to you.
That's easy profit.
Should the previous property owner fail to raise the necessary funds to clear the debt, then you are the owner free and clear.
You will have bought a piece of property for a fraction of what you can now sell it for.
To keep your capital working for you, you will probably want to resell as soon as possible.
After that, you keep repeating the process, making money over and over again.
Something to keep in mind with Hybrid Tax Investing, is that it can be a lengthy process.
The government allots the previous owner a specified time frame in which to come up with what he owes.
It may be a couple of months or a couple of years.
It's probably best to think of it as a long term investment, but one that will pay off handsomely.
You really need to be knowledgeable about tax investing methods and various state regulations before going into this type of endeavor.
Happy investing!