If investing in real estate foreclosures is your next move, you couldn't have made a better choice. If you want to be successful at property investing, you'll need to do your homework first, and learn which type of real estate foreclosures are the most profitable. The answer? Tax property will almost always be your best bet, because of a few prominent factors.

Reason numero uno: the mortgage! Mortgage foreclosures always have them. Tax foreclosures don't. The property taxes will end up being paid by the bank - otherwise, their mortgage will be wiped out in the tax sale. So most tax properties will be free from liens, leaving the equity up for grabs. If you want to profit as much as possible from real estate foreclosures, free and clear property is a good start!

Tax property also beats other investments because it's cheaper. And if you know a couple of insider moves, you can often buy it for $200 - or less. Other real estate foreclosures don't offer this possibility - either you're paying a lot, or bringing debt current to get them. If you're not already, you need to get acquainted with the technique for buying tax property cheaply... and if you're imagining the auction block at tax sale... think again.

You'll get tax properties the cheapest by buying outside the tax sale. You'll wait until all the way at the end of the year following tax sale, when the owner can still redeem. At that time a certain breed of owners is left. These owners aren't even trying to pay the taxes - they decided, probably before tax sale, to just let the government foreclose. They view the deed as worthless, and are happy to get rid of it sooner. They'll sign their deed over to you for a few hundred dollars.

When it comes to real estate foreclosures, in terms of profit potential relative to the amount you've put in, you just can't find a better investment than tax property. What have you got to lose when you're investing so little? Don't let fear stop you from trying. And this point in history is one of the best ever to get involved with when it comes to real estate foreclosures - there are lots of them out there. Don't put it off any longer!