Are you letting fear hold you back from investing in real estate? Don't. Get educated, and take the leap. But not just any investment will work - buying a home with back taxes is the best place to start. Here's how to buy free and clear tax property for as little as a few hundred dollars.

Tax sale is not the place to get this property. In case you need convincing, consider this. The bidding process ensures that every desirable deed will be bid up close to market value. Still need a reason? You can't visit any of the properties before the auction - you have to bid blindly. And don't forget - the owners have a year after tax sale to redeem the property - and usually do. Buying a home with back taxes for a real profit will require a bit more creativity.

This isn't bad news - there's a much easier and more profitable way to buy tax property. The tax delinquent owner himself is your best prospect - but only if you approach him at the end of the redemption period, when he is just about to lose the property for good. You won't find many owners still trying to pay their taxes - most have decided to just let the property go.

These owners' properties will be easy to purchase. You'll find a lot of heirs, landlords, and people who just bought the property thinking maybe they'd do something with it one day. All of them no longer want the headache of maintaining the property. You don't need to do much else but ask, and these folks will sign over the deed. Toss in a few hundred dollars as payment for their time. With $200 invested, you can then afford to sell for cheap and take your profits immediately! Or, redeem, and keep the property.

Use this method of buying a home with back taxes and you're sure to have success, even if you've only got $200. The number of tax foreclosures is through the roof, so don't wait to get started.

Want another huge tip? in most counties, any amount that's bid over what was owed on the taxes on the house belong to the owner that lost the property. More often than not, the owners don't understand their legal right to the money. Notifications from the government often go to the tax sale property, where they no longer live. Unfortunately for the owner, if they don't collect the money in time, they'll lose it - permanently.

Here's where you come in - since these funds aren't held by the state, they are usually not subject to state laws about finder's fees. So that means that you can charge whatever you want as a finder fee for your information and help recovering the money. Since these are real estate overages, they're often for high amounts - which means lots of profits for you.