Real Estate vs. Tax Sale, which way of investing is better?
The real estate market is getting off to a slow start in many parts of the country this year, but does that mean it won’t recover? No.
Interestingly, a slow housing market tends to create for itself a vicious circle. Just as the tendency among non-savvy stock investors is to buy when everybody else is buying (usually when stocks are high) and hold back when buying is low, the same thing occurs within the real estate market.
Real Estate vs. Tax Sale Investing: Which Will Remain Standing if the Other Falls Short? A Case for the Real Estate Tax Sale
You may wonder, especially if you’re a tax defaulted property investor, whether you should buy tax lien certificates or tax deeds, why would you want to pay more for a property when smart timing could get it for you with a lesser investment? This happens because people tend to follow the investment habits of others, even when it might not be in their best interest.
Another concern that stops investors dead in their tracks is fear of further depreciation of a property should prices continue to drop after they make their purchase.
On the other hand, those who invest in tax deeds for sale (tax defaulted property investors) know that the rules governing it are stable, allowing this investment method to retain its popularity even when the real estate market is preforming poorly. One has nothing to do with the other.
In conventional real estate investment, paying attention to opportunities offered during low housing markets and then following a strategic plan, an investor will be more likely to take advantage of good deals. It might require breaking away from what others are doing and trusting one’s self to make sound decisions.
When considering how to make money buying tax liens; i.e. tax defaulted properties, there’s actually less to consider. This industry has been helping people build wealth for over 100 years without much fluctuation or change. Guidelines are set by local government. Each of 3,200 counties and 1,400 municipalities set’s its own rules as they relate to statutory law, so there’s not a whole lot of wiggle room.
So when it comes to conventional real estate vs. tax sale property investing, which has the greater staying power when running neck and neck with the other? I’ll go with tax defaulted property investing every time.
As a real estate investor, have you ever considered tax defaulted property investing as an option to increase your cash flow or build wealth? You may be surprised. Learn the truth before you go any further.