Today I’m answering your questions about investing in a rental property, and the topics I’m going to cover are:
- Investing in Rental Property the Smart Way
- Common Misconceptions About Property Rental
- Buying Rental Property at Wholesale Prices
- A Way of Real Estate Investing That Solves Money Problems
- A Strategy for Selling Investment Property
- Earning Passive Income From Investment Properties
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.
Investing in Rental Property the Smart Way
I’m Ted Thomas, and I’ve been involved in tax defaulted real estate investments for more than 30 years. Today, I’ll be discussing investing in a rental property and what the smart investors are doing.
There is a whole industry of people and property involved with rentals. A small amount of investigation would lead to a large inventory of possible rental properties which come up for auction in over 3,000 counties across the United States.
My perspective comes from decades of watching, learning, shifting and sorting through hundreds of tax-defaulted properties.
This article will not be about horror stories; it will be about solutions for investing in a rental property and researching the physical condition of properties in order to buy for pennies on the dollar.
Common Misconceptions About Property Rental
Let’s talk about an alternative, little-known, but highly lucrative, part of the real estate business that is poorly understood although it is quite profitable for those who know how.
There’s a misconception that you can buy a house, put up a “For Rent” sign, and then 30 years later your tenants have paid for your investment, made you a lot of money, and you feel like you’re rich.
There are two sides to every story, and the opposite of what I just said is the nightmare that results in business losses, irritated tenants and the involvement of angry attorneys.
Thinking about investing in a rental property? I’m a solutions guy, and I’m about to show you how to make a bundle of dough with rentals, which can be done if you don’t have a huge mortgage and the properties are purchased in decent neighborhoods.
Buying Rental Property at Wholesale Prices
What are the smart investors doing? They’re buying mortgage-free properties wholesale for 10 to 20 cents on the dollar at tax-delinquent property auctions.
These are properties that the local county has seized because the owners failed to pay property taxes, then the properties are sold at a tax defaulted auction. This is a public auction, and the starting bids are only the back taxes. However, that doesn’t necessarily mean the property will sell for that price. The highest bidder will be the winner of that auction.
Simultaneously, the treasurer deletes the mortgage or deed of trust loan on the property.
What if you could locate a number of single-family homes that were slightly used and abused but had no mortgage or trust deed loan? Wouldn’t this give you a big head start?
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A Way of Real Estate Investing That Solves Money Problems
What I’m sharing with you gives you access to bargains on single family homes, vacant residential lots, small apartment buildings, and small office buildings.
From my perspective this is the piece of the puzzle that most people are missing. For you, it’s an inventory that’s unlimited.
The best part of this system is it works even if you’re just getting started investing in a rental property.
Your worry and fear of money problems can turn around practically overnight because this process will allow you to buy low at auction and sell low quickly or rent it out fast by offering a discount.
A Strategy for Selling Investment Property
Markets and locations are different. If you can’t afford to buy a mansion in the country club, that doesn’t matter. You can start by purchasing at much lower prices. Dozens of properties will be in working-class neighborhoods.
These are not always pretty houses, but somewhat used and abused. They can be sold or rented out to needy buyers or tenants.
For example, a property valued by the tax assessor at $100,000 could be sold at auction for 10 cents on the dollar, $10,000.
The tax-assessed value was $100,000, but the savvy investor has learned to buy low. If they wanted, they could try to sell high. However, my suggestion is to sell it low and do it quickly.
Sell to guys and gals who like fixers, or sell to a flipper who understands the value.
Earning Passive Income From Investment Properties
If you’re looking for passive income, advertise on Craigslist, eBay, Trulia or a sign on the front lawn: “For Sale – Seller Financing – Installment Sale Acceptable”.
The terms of the installment sale are 10 years at $700 a month, which comes to a total of $84,000.
You purchased a property at close to back taxes for $10,000, and now you’re collecting $700 a month.
You won’t have to hard sell, and the clients will come to you. They’ll be happy to pay you $700 a month to have a property that they might fix up and own even though they have poor credit.
We hope you enjoyed Ted’s lesson, “Thinking of Investing in a Rental Property? What the Smart Investors Are Doing.”
Before you buy your next rental property, you’ll want to do a serious investigation into tax defaulted property investing.
At local tax delinquent property auctions, real estate is sold mortgage-free with the bidding opening at or near the back taxes, mere pennies on the dollar of the assessed value.
If you’re investing in a rental property, just imagine what you could do with a $100,000 home that you purchased for $10,000 or $20,000, and it has no mortgage or deed of trust loan.
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.