Today I’m going to show you a little-known way to make passive income with real estate.
The topics I’m going to cover are:
- Earning Passive Income With Tax Defaulted Real Estate
- Amazing Deals With Tax Defaulted Real Estate Investment
- How Small Investors Are Making Passive Income in Real Estate
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 take advantage of this FREE Gift.
Earning Passive Income With Tax Defaulted Real Estate
Imagine passive income of $25,000, $30,000, or even $50,000 from your own real estate. Today I’ll share with you how you can follow a step-by-step process with tax defaulted real estate investing using only small dollars to make big money and earn passive income with real estate.
Most people don’t know how to make passive income with real estate, especially tax defaulted property. I’m going to show you how to develop a six figure income in real estate.
My name is Ted Thomas, and I’m an educator, investor, and author. Today I’ll share information with you from an investor’s point of view. I’ll reveal how to make money on small deals, then once you’ve learned this, you can transition to larger deals. I’m going to show you how you can make real money.
I’ll demonstrate how to generate passive income with real estate and show you a case study of two seniors, a married couple, who turned a $12,000 investment into $48,000.
Amazing Deals With Tax Defaulted Real Estate Investment
I specialize in a subset of traditional real estate called tax defaulted property, which includes tax lien certificates.
What is tax defaulted property? Annually, a number of real estate owners will have difficulty paying property tax. If the county is unable to collect property taxes, the treasurer is authorized to seize the property.
The county wants the revenue, not the property, so the treasurer will announce a tax defaulted property auction, also called a tax sale, on the county website and in the local newspaper.
The starting bid on a property at a tax sale usually begins at the amount of the delinquent back taxes which will be quite low, 10 to 20 cents on the dollar of the tax assessed value of the real estate.
As amazing as it sounds, these properties can go to the highest bidder for 60%, 70%, and 80% more below the tax assessed value. Additionally, at the close of the auction the treasurer will cancel the deed of trust loan or a mortgage, resulting in the highest bidder walking away with mortgage-free property purchased at a stunning discount.
A lot of people want to know the average passive income from rental property that an investor can earn. Well, the incredible bargains you can get on real estate sold at tax defaulted property auctions can enable you to easily meet or exceed the 1% rule that many investors use to vet properties.
How Small Investors Are Making Passive Income in Real Estate
How do you earn passive income with real estate purchased at a tax sale? Here’s a perfect case history example.
At an auction in Michigan, Sonny and Marcia purchased a tax defaulted property for $8,000. It was a modest single family home with a tax-assessed value of $55,000. That’s a purchase price of less than 15 cents on the dollar!
Next, Sonny and Marcia supervised the tidying up of the property, which cost them an additional $4,000, so now at this point, their total investment is $12,000.
I have a free gift for you that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Be sure to get your FREE gift today.
Earning Passive Income the Ted Thomas Way
Sonny and Marcia wanted to earn a passive income with real estate. Using the quick-cash-flow generating “buy low, sell low” strategy that I had taught them, they sold the property for $35,000.
In their training, Sonny and Marcia had learned my system of buying and selling below the tax assessed value to make a quick sale, then moving on to the next property, which is exactly what they did.
My system recognizes that the student makes their money when they buy the property at auction, then they collect money when they sell the property.
Residual Income From an Installment Sale
Let’s get back to how Sonny and Marcia earned passive income with real estate on this deal.
To recap, the tax assessed value was $55,000. They purchased for $8,000, spent $4,000 on clean up, were all in at $12,000, and sold for $35,000.
Sonny and Marcia generated a profit of $23,000 on the sale price.
Having learned in my training workshop that many working class people are rejected for home loans by the banks, Sonny and Marcia advertised an installment sale and sold the property to a qualified buyer who made monthly installment payments plus interest.
Making Monthly Passive Income for 10 Years
Let’s do the math.
- Purchase price and clean up: $12,000
- Sales price: $35,000
- Installment sale payments: over $400 a month for 10 years
- Installment payment total: $48,000
The above is a very simplified breakdown. If you choose to sell a property via an installment sale, using a real estate passive income calculator can be helpful.
The payments on a rent-to-own option are passive income. If the client purchasing the passive income rental property fails to pay, the seller can evict the tenant, resell the property and start collecting passive income once again.
We hope you enjoyed Ted’s lesson, “How to Make Passive Income With Real Estate.”
When you purchase real estate as an investment, you want the best profit margin you can get. That’s where tax defaulted property investing comes in. At a tax sale, you can buy real estate for pennies on the dollar of the tax assessed value, and you get the property without a mortgage.
Using Ted’s “buy low, sell low” strategy combined with an installment sale, you can sell the property quite quickly and make passive income with real estate for years.
If you’d like to learn how to reap huge rewards from investing in homes at tax delinquent property auctions, 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.
Get started today by taking advantage of this Free Gift from Ted. 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.