If you buy a domain from a 3rd party, the backlinks are valuable.  I always wait a few months before redirecting, so just set up a quick minisite until two page rank updates have passed and then go ahead and 301 redirect.  However, it seems that you'll get the link juice from the back links, the anchor text is ignored by Google.   Buying a domain at Godaddy TDName expired auctions, seem to not count as a dropped domain if you immediately set up a mini-site.
GoDaddy Auctions is a marketplace where GoDaddy lists domains that have expired and are in the renewal grace period. Apart from these GoDaddy also lists other domains, but the expiring auctions at GoDaddy are the most popular. Based on the percieved value of the domain, domainers and SEOs bid on these auctions. If the original owner does not renew the domain, the top bid wins the auction and gets the domain name.

Internet Marketing is one of the best fields which have a great output potential, but using suitable tools for different tasks is what make it interesting. For newbies, it may not understandable, but for professional internet marketers, tools are everything. Among many tools of SEO (Search Engine Optimization), expired domains finder that finds expired domains with already build matrices are most attractive things. Online marketers are well aware of the fact that time is everything, so they try to find domains that have already great values to spare their time.

2) prerelease auctions.  These are domains where the auction venue has contracted with the registrar, like Fabulous or Moniker, to auction off non-renewed domains.  Just before a domain enters the pending delete process, it goes to a private auction to any person who has backordered the name.  Some people feel that back links on these type of auctions still provide a SEO benifit. My testing indicates that there is zero SEO benifit when these domains are redirected into another site.  So if you get a domain with "pink squirels" in a lot of achor text to a domain and then point it at your domain, you don't rank for "pink squirels"

While traffic, as an abstract, is fairly easy to understand and get, getting it on a consistent basis is another matter entirely. That’s why a lot of affiliate marketers who are serious about generating online traffic are quickly paying attention to drop domains. Drop domains is not a new phenomenon. People have been registering drop domains for many years now to scoop up traffic that those domains still attract. However, as Google continues to crack down, and as more social media platforms impose anti marketing rules, or rules that have an anti marketing effect, drop domains have become more prominent in the online marketing landscape. If you would like to tap into a fairly easy and potentially powerful source of online traffic, consider drop domains.
I've seen some people comment about losing the link value of domains that have expired and picked up, but what about non-expired domains?  Let's say a competitor is going out of business and they still have a year or two left, and we buy their domain and site.  Is there a risk changing registrant info and registrars, even if I keep their site up and mostly the same as before?  I was under the impression that I'd want to keep it under their name so as not to hit the uber-reset button on the domain's inbound link value.
The easiest way to see that is to go to HREFs and look at the anchor text. It reveals right away whether or not the site has been spammed. You also want to see if it’s been SEO’d too much. Right? In this case, it’s not because it has a brand name here and some natural keywords, but if the number one anchor text was like, cell phone management system and then the next one was like cheap cell phone management system, you’d know that the anchor text was manipulated and probably overly SEO’d. So, what you want as a site that has a natural link profile.
Domain Hunter Gatherer also makes expired domain detection less painful. As I've mentioned above, finding drop domains on your own can be like taking shots in the dark, or trying to find a needle in a haystack. You’re more than welcome to try it, but I’m telling you, it’s not going to be a pleasant experience. With Domain Hunter Gatherer, you have many different options on how to search for drop domains. You can enter a search term and it will spit out sites that you can then crawl for dead links. You can then filter these dead links to see if they can be registered. You can also enter a site URL of a competitor and get dead links that way. You can even import web pages from Wikipedia or other websites to scan for dead links.
Next, some of these expired domain names have ranked in high authority sites that are ranked or had ranked themselves. Besides, some of these domain names are worth a fortune. For example, domain names sell for about ten to twenty dollars each. However, those that are the most sought after can go for over $ 2500 a month because they have lots of traffic back links or rankings.The last advantage is that you don’t have to spend much to find expired domains.
ExpiredDomains.net gathers all the information you need to find good Expired Domains that are Pending Delete and you can Backorder. Depending on the domain extension you can search through thousands of domains every day before they get released to the public and pick what you like. ExpiredDomains.net currently supports 473 TLDs. From the classic gTLDs like .com, .net, .org to Droplists for ccTLDs you can only find here and now we even support some of the best new gTLDs like .xyz and .club.
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