Ways to Invest in Real Estate for Massive Cash Flow
I’m Ted Thomas, and I’ve been involved in different types of real estate for over 30 years.
Today I’m answering your questions about different ways to make money in real estate. What I’m about to reveal is not for everyone. I’m going to reveal a little-known but highly lucrative real estate segment that allows the little guy to make significant upside cash flow. I’ll let you be the judge and jury if this is something you want to do.
The topics I’m going to cover are:
- Traditional Ways to Invest in Real Estate
- An Alternative Way to Invest in Property
- Buying Real Estate at Tax Defaulted Property Auctions
- Earn Real Estate Profits from Tax Defaulted Property Investing
Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
Traditional Ways to Invest in Real Estate
Traditional real estate involves everything from renovations and fixer uppers to modifying small apartments or buying and reselling office buildings. It can be in rural areas and urban areas.
Traditional real estate offers many short-term and long-term deals. From time to time, it offers land deals and even new subdivisions. There are many different ways to make money in real estate via traditional markets and methods
In the last decade, the television media has made renovations of homes look really easy.
You’ve probably seen many of those shows which are really infomercials. They’re popular and have glamorous young people as the masters of ceremonies, always all smiles with very snappy answers and all the problems of real estate are solved in a short 28 minutes before the next show comes on.
If you live on the coast of the United States or on a lake or have a home or duplex in the mountains or in the garden spots of San Diego, Miami, or Orlando, you are encouraged to make your home a vacation rental and that is another whole world.
It’s difficult not to be seduced by the promotion of these types of real estate. Everything is pristine and clean, and who knows what the cost really was.
An Alternative Way to Invest in Property
Today I’m discussing different ways to make money in real estate, and I’m going to tell you about a different market, an alternative market.
For 30 years, I’ve been involved in a subset of traditional real estate called tax defaulted property. It involves all the same types of real estate as traditional real estate. However, the properties are slightly used and abused, some are not so hot or are even junk, and a few of the properties just need paint and clean up to be ready to be lived in.
Tax defaulted real estate is available in all 3,000+ counties in the United States. The properties involved are in default on the mandatory property tax payment.
The property being in default causes big problems for the local county. Counties use property tax revenue to pay the school teachers, firefighters, police and sheriff’s departments.
In all 50 states, the legislature which governs the state has enacted laws that require all property owners to pay property tax. If the property owner fails to pay property tax, the treasurer will seize the property and then sell it at a public auction.
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Buying Real Estate at Tax Defaulted Property Auctions
At tax defaulted property auctions, the bidding begins at only the back delinquent taxes. This could be 10 cents or 20 cents on the dollar for a starting bid.
The auction is a public auction and the property will be sold to the highest bidder.
All property has a tax assessed value. The county does not want defaulted properties and requires the treasurer to auction them, many times with a 60%, 70%, or 80% discount below the tax assessed value.
The tax defaulted auction process cancels the existing mortgage or deed of trust loan, therefore, the new successful bidder at auction receives a property with no mortgage or trust deed loan encumbrance.
Note that properties sold at tax defaulted auctions qualify for a warning “buyer beware” because the purchase of the tax deed from the county does not warrant or guarantee clear title by that county.
Earn Real Estate Profits from Tax Defaulted Property Investing
In a local county with a small population located just north of Tampa, Florida, my student invested $9,100 at a tax-defaulted auction and picked up a used and abused single-family home completely overgrown with small trees.
The tax assessor valued the property at $91,000. Using techniques he learned in our training, my student checked more thoroughly and found comps (comparable values) which determined the value at $150,000 or more.
My student sold the property to a tenant as a “handyman special.” The tenant offered to fixup the property and tendered a $5,000 down payment on an option to buy for a purchase price at $150,000.
Regarding all the different ways to make money in real estate, I come from a practical world. If you’re buying real estate from the county or a municipality for 10, 20, or 30 cents on the dollar and you’ve evaluated that the property you’re purchasing has a large margin between the purchase price and your possible sales price, then tax defaulted property investing makes sense.
We hope you enjoyed Ted’s lesson, “Different Ways to Make Money in Real Estate”
There are many different ways to make money in real estate, including alternative ways that few people know about, like tax defaulted property investment.
Tax delinquent property can be purchased mortgage-free at county auctions for massive discounts of 10, 20, or 30 cents on the dollar and resold at a discount to produce quick cash flow.
If you’d like to know more about tax delinquent property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
Learn how to reap huge rewards from tax lien and tax deed investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.