Thinking you need a ton of money for buying real estate past due taxes? Not when it's tax property. When you get it the right way (outside of tax sale), it can be virtually headache-free and very profitable. Here's how you should go about buying real estate past due taxes for pennies on the dollar, with no competition.

1. Forget bidding at tax sale. New tax sale investors always drive prices up - no more good deals to be had. Need another reason? The owners usually pay the taxes and you don't get the property this way anyway. Tax sale will be a disappointment - but don't worry. There's another way to get them.

2. About 9 months after tax sale, you'll start to buy. Mortgage companies have already bailed out mortgaged property at this point, leaving free and clear property. And you can bet that the owners remaining probably aren't going to pay the taxes. This is where you'll find your best opportunity for deal-making.

3. Get phone numbers for the remaining property owners. This is not difficult - you can usually find them easily using internet resources. You can then contact them via email, letter, or phone. (Phone usually works best.)

4. Offer to resolve the situation sooner by getting the deed off their hands now. If they aren't planning to pay the taxes, tell them you'd love the chance to see if anything could be done with the property, and offer a few hundred bucks for their time. If you don't think this will work, just try it for yourself - you'll be amazed how many owners just want the deed out of their name as soon as possible.

5. Make your money! You can keep the property for a rental, or live in it. Or if you don't have the cash, price the property low and sell to another investor.

Either way, you'll profit. This is by far the best way to start buying real estate past due taxes for pennies on the dollar. And there's really never been a better time to start investing.