Some people act like selling a property gives the buyer the opportunity to instant profit free and clear. Well, sometimes that is not the case. Do you know why? It is because of expenses. No matter how someone chooses to sell their property, either in an FSBO (For Sale By Owner) or tax lien sale, there would always be expenses involved. Some of these would be:
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An FSBO advertisement because of tax lien would need money in order for the property to be advertised in radios, web listings, printed flyers, and newspapers. The real estate agent would be in charge of the advertising.
Repairs
A tax lien property that needs repairs would require money coming out of your own pocket. The repairs would depend on the condition of the property. Furthermore, roof, plumbing, and electrical repairs would need inspection.
However, do not be discouraged because of these expenses. Take note that there are properties out there that need only minimal repairs. These repairs have little effect on the potential profit that you are going to earn by flipping the property. So, it is a must to do due diligence on each piece of property that you are aiming to buy.
