Get the confidence and tools to take advantage of this growing method of investingTax liens sales and tax deed auctions, conducted by governmental agencies for delinquent taxes on real estate, are not new―they have been around for more than 200 years. But until recently, they remained a small niche market for investors. However, as more people become delinquent on their real estate taxes due to the increased foreclosure market, and local governments look for revenues wherever they can find them, this investing methodology has become increasingly popular - and it can be done from anywhere. Zero Risk Real Estate shows readers exactly what to look for, what to avoid, and how to get the biggest return with the smallest amount of risk.
- Explains how to utilize the internet for research and investing from anywhere in the world!
- Gives step-by-step advice on how to determine your investment objectives and where to find tax sale listings
- Details how to take advantage of "over-the-counter" bargains and increase your returns
- Shows what to do once you have your new tax certificate, and how to "cash in"
This is not a get-rich-quick infomercial approach―it is a real investing strategy that is expected to grow over the next several years as an appealing alternative to the stock market and other investments. Using real-life examples and case studies, this book walks you through the process step-by-step to make it easy for beginners, and shares advanced investing techniques for more experienced investors.
Author(s): Chip Cummings
Edition: 1
Publisher: Wiley
Year: 2012
Language: English
Pages: 208
Zero Risk Real Estate: Creating Wealth through Tax Liens and Tax Deeds
Copyright
Contents
Foreword
Acknowledgments
Introduction
Downloadable Letters, Forms, and Scripts
Demonstration Videos
Important Disclosure Notice
Chapter 1: Understanding Tax Liens and Deeds
Real Estate and the Property Tax Process
What Is a Tax Lien?
What Is a Tax Deed?
Understanding Redemption Periods
What About the Real Estate Market Collapse?
What Makes These Types of Investments Zero Risk?
Chapter 2: Getting Started
Selecting Your Location
Estimated Annual Returns on a Tax Lien Certificate
Finding Tax Sale Listings
County Website
Call or Visit the County Office
Check Local Newspapers
Tax Listing Service Subscription
Auction Request Letters
Filtering Your Data
Evaluating Different Types of Properties
Residential
Commercial and Industrial
Unimproved Vacant Land
Special Use
Conducting Internet Property Research
Recruiting Local Help
10 Rules for Qualifying Every Property
Setting Your Bids
Chapter 3: Going, Going, Gone!
The First Auctions
Types of Auctions
Premium Bidding
Bidding Down Ownership
Bidding Down Interest
Lottery or Rotational Bidding
First Come, First Served
Random Selection
Onsite Auction Tips
Online Auctions—Bidding in Your Pajamas!
Online Auction Strategies
Advantages and Disadvantages
Cancelling Your Bid
Over-The-Counter Bargains
Paying for Your Winning Bid
Chapter 4: Protecting Your Investment
What To Do First
Record Certificate
Notification
Pay Taxes
Protecting Your Tax Lien Interest
Protecting Your Tax Deed
Insurance and Property Maintenance
What To Do When Your Property Doesn't Redeem
Chapter 5: Taking Control of Your Property
Do You Really Want To Own It?
Understanding the Foreclosure Process
The Costs of Foreclosure and Possession
Adverse Possession
Eminent Domain and Condemnation
The Art of Eviction—or Not!
Dealing with Former Owners
Other Legal or Equitable Interest Holders
Chapter 6: Avoiding and Eliminating Risk
Risk Elimination
Market Risk
Property Risk
Liquidity Risk
Price
Mortgages
IRS Liens
Bankruptcy
Mechanic's Liens
Environmental Risk
The Risks of Illiquidity
Managing the Property
Chapter 7: Liquidation and Cashing In
Creating an Exit Plan
Tax Lien
Tax Deed
Hold and Rent Strategy
Making Repairs
Collecting Rent
Dealing with Problem Tenants
Surviving Evictions
Keeping Your Property Safe
Paying Taxes
Rapid Liquidation
Creating Long-Term Wealth Using Installments
Property: 3-unit multi-family house with detached garage
Zero Risk Liquidation Results
Rinse and Repeat
Chapter 8: Advanced Strategies
Using Traditional Funding
Tapping into Private Money
Corporate Investing
Locating Investment Capital
Investing Using Retirement Accounts
Tax Strategies
Unique Types of Property Deals
Chapter 9: Tracking Your Investments
Setting Up a Simple System
Accruals and Yield Information
Maintaining Contacts and Lien Lists
Generating Reports
Chapter 10: Taking Action
What To Do Now!
The Complete 13-Step Checklist
1. Decide Where to Invest
2. Decide How to Invest
3. Decide How Much to Invest
4. Investment Strategy
5. Acquire the Tax Sale List
6. Select Quality Properties
7. Conduct the Research
8. Prioritize Your List
9. Set Your Limit
10. Get Ready, Get Set, Bid!
11. Arrange Payment
12. Track Your Investment
13. Do It Again!
Measuring Your Success
Setting Goals and Evaluating Results
Final Thoughts
Appendix A: 101 Online Resources
Appendix B: State Listings
Glossary
About the Author
Index
Free Bonus Forms and Videos
