Today I’m answering your questions about residential real estate investing, and the topics I’m going to cover are:
- There Are Many Viable Real Estate Investment Strategies
- Why Tax Defaulted Real Estate Investing Is Lucrative
- My Quick Sale, Buy Low, Sell Low Real Estate Strategy
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There Are Many Viable Real Estate Investment Strategies
Everyone wants to make money, and the most recent 50 years of residential real estate investing has been good for the average investor.
For the residential real estate investing strategy that makes the most money, I don’t think it boils down to just one single investment or asset type.
There are going to be different answers depending on viewpoint and experience.
Flipping Residential Real Estate
Rental real estate is the primary method where most people get started, although there is a new class of investor called flippers. These are people buying what they perceive as undervalued real estate, sometimes fixing but always flipping to a new owner for profits.
Rental Property Investment
Rentals are a large part of the residential real estate investing world. The landlord anticipates that appreciation will create profits, the rental revenue will pay the mortgage, and the banks will loan as much as 80%.
Newcomers can buy real estate using leverage. This is a big deal. Leverage is paying a portion, a small part of the total balance of the purchase.
Real Estate Investment Trusts
There are many strategies to make money in real estate. Many people make money in real estate in the stock market purchasing REIT (Real Estate Investment Trust) shares.
Real estate syndication groups are formed to purchase property, and they pass on the tax deductions that real estate allows, distributing those tax deductions to investors who are in the game for capital gains.
Security brokers create small mutual funds that allow small investors to join together and own real estate. The mutual funds prefer to own small to medium size office buildings, commercial real estate and apartments.
Investors prefer commercial real estate because of the consistent monthly income generated from long-term leases and the fact that the investor has little or no day-to-day management of tenants.
Tax Defaulted Property Investing
I’m Ted Thomas, and for more than 30 years, I’ve been involved in residential real estate investing in a subset of the traditional real estate market called tax defaulted real estate. These are properties that were owned by people who failed to pay property tax.
Tax defaulted real estate may be any of the following types of real estate:
- Small apartment properties
- Small office buildings.
- Vacant residential lands
- Small farms
What’s different? The property owner has defaulted and not met their obligation to pay property tax which is a serious problem for the property owner and the local county.
If the taxes remain unpaid, the treasurer will confiscate the real estate. However, the county is in the business of operating and managing the county and doesn’t want the defaulted property, therefore, the treasurer will sell tax defaulted real estate at public auction to the highest bidder.
This can be a huge opportunity for a knowledgeable and trained investor who is searching for short-term or long-term real estate investments and high yields.
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Why Tax Defaulted Real Estate Investing Is Lucrative
The tax defaulted properties are sold at public auction with starting bids that can be as low as 10 to 20 cents on the dollar of the assessed value. I’ve attended auctions where the starting bid was only $100.
The county treasurer, who is responsible for the auction, will motivate buyers by starting the bidding at very close to the back delinquent taxes.
At tax delinquent property auctions, it’s not unusual for real estate to be sold for 60%, 70%, or 80% below the tax assessed value. Also, the treasurer will cancel the mortgage or deed of trust loan on the property, so the winning bidder gets the real estate mortgage-free.
There are over 3,000 counties in the United States, and they all hold tax defaulted property auctions. There will be 5,000 auctions across the nation in any given year.
My Quick Sale, Buy Low, Sell Low Real Estate Strategy
For example, Bill B. purchases tax defaulted properties at auctions throughout the state of Michigan where all 83 counties will auction tax defaulted real estate.
Bill typically purchases for very close to the back taxes, then he heavily markets the property. He utilizes seller financing and sells property via an installment sale.
Bill follows my system of buy low then sell low at less than the tax assessed value. The low price attracts property flippers, fixers, and renovators and generates a quick sale.
In my experience, this is the best residential real estate investing strategy that makes the most money and lets you live the lifestyle that you deserve.
We hope you enjoyed Ted’s lesson, “The Residential Real Estate Investing Strategy That Makes the Most Money.”
There are a multitude of ways to profit from residential real estate investing, but Ted Thomas discovered the way that makes the most money and doesn’t require a lot of capital to get started.
Ted’s residential real estate investing strategy begins with purchasing tax delinquent real estate, which is sold mortgage-free and for pennies on the dollar at local county auctions. The enormous profit margin enables you to generate cash flow fast by utilizing Ted’s “buy low, sell low” quick sale strategy that can be repeated over and over for massive profits.
If you’d like to learn how to reap huge rewards from tax delinquent property investing, Ted Thomas provides full support and complete tax lien 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.