PLAN No. 639. A DEACON MAKES MONEY ON TAX DEEDS
I met this gentleman in connection with some old back taxes which the city claimed were against certain properties. He showed willingness to pay the back taxes at once without any argument, and after making his payment entered into a conversation with me relating how he had acquired this property and how much he had made. One rainy day, he said, he attended a sale at the courthouse, and there being no bidders present, for the property there offered for sale, except himself, that he acquired this piece of land for a $150, and two years later sold the same piece of land for $3,000. He said that for the last six years he had made his living by punctually attending these tax sales and, from time to time, making good purchases. He took a great deal of the property that, at the time of the purchase, he did not know what to do with, but later used it for trading purposes and profited on it very handsomely. He made more than $3,000 a year in that work alone. He found, in attending tax sales, that about the same crowd were always present, and soon he made arrangements with them for the purchases of different properties that each wanted to secure. In other words, he would not bid when another party wanted a piece of property, and the other party would not bid when he wanted a piece of property, and in this way, they obtained their property at a low price.
There is a Chicago corporation that follows this business entirely, however in the connection with it, they purchase tax certificates. They say that about 25 per cent of the property on which they purchase tax certificates, come to them, and out of this they make very good money.