Posts Tagged ‘foreclosures’

Government Auctions – The Investment Differences Between Tax Lien and Tax Deeds

by Leslie Jones

Have you ever considered what the penalty is when a property owner is unable to pay their taxes? Well as you may of guessed the IRS is intolerant and will do whatever is required to retrieve the taxes due, including forcing the buyer to foreclose on their home. On the outside this may seem like a very unpleasant situation, however, there are other sources of alternative financing available to assist this owner. That’s where individuals like yourself can profit while providing a possible ‘light at the end of the tunnel’ for the distraught home owner.

Sometimes tax lien sales are held by the government for the local public to bid on the tax sales in lieu of the property. This means that the public will bid on the chance to pay the tax debt for the property owner so that the owners may keep the property. Of course, nothing comes for free.

If the homeowner fails to pay back the lender, the lender then has every right to foreclose the property and to transfer the title in their name. In order for the homeowner to remain on the title, the owner must keep up with the payments on the new tax lien loan. The lender will charge the homeowner a predetermined interest rate which is much higher then the going mortgage rate in return for saving their home.

Obviously, a savvy business person would like the homeowner to be unable to pay back the loan or default on the loan terms, so that they can receive title on the property themselves. It’s in the homeowner’s best interest to pay their dues on the home and home tax loan, but if their financial situation was bad in the first place, there’s is a chance it may not improve anytime soon in this economy. In many cases, all odds are against the homeowner.

A tax deed sale is different then a tax lien sale. The main detail the two hold in common is that they’re both sold at local municipal government auctions. At a tax deed sale the municipality sells the actual property with title, with the top bid winning the rights to the property immediately. The current homeowners do not have an option to pay a new lender in an effort to maintain the property. Any outstanding liens and or penalities may or may not have to be honored as declared by the local or state governments. You can find which is the case beforehand by contacting these offices toavoid encountering any unexpected costs.

These government auction tax sale opportunities may be the best investments one can make because you actually have a house and/or property that either you own or have as collateral should your lien interest payments not be made. Just reflect on the amount of money you can make by purchasing a tax lien and charging high interest rates, or paying the defaulted taxes, receiving the house and either renting it for a monthly income or reselling it for a healthy profit.

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Build systems for true success in Real Estate

by Jesse Davis

When you decide that you truly want to be successful in real estate investing and get into it full time, or even if you want to be really good at it part time, then you have to build systems. Systems for everything.

Here are some of the systems that you need to have in place: 1. Lead generation (for buying houses and finding buyers for your deals); 2. Lead processing (a system to handle the leads once you get them); 3. Closing system. The system to handle your buyers is the most important of them all.

Set up a system that attracts to you the buyers looking for the kind of deals you have. Among all things, it must be able to whittle them down. Meaning, the system should separate tire kickers from true buyers, so that you don’t have to respond to everyone who shows just a little interest. If you don’t have this system, you will not be selling a lot of properties and you will be wasting a lot of time.

Take the trouble to build these systems. Take the time to do it. Most investors are too busy trying to do deals so they never bother to do it. The problem is they don’t understand that having this kind of systems will help them get to the point they want to be at as an investor.

Take the time to build the system and it will grow your business like no other. The time is worth it! I guarantee it.

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Real Estate Marketing is the key!

by Jesse Davis

Is everything working right in your real estate investing? Are you doing the amount of deals that you want to be doing? If not, then I know what your problem is.

Even without talking to you, I know that every problem that you have in your real estate business can be traced back to marketing. If you don’t have enough leads, it is a marketing problem. If you can’t sell your house, it is a marketing problem. If the leads you are getting are not panning out, then it is a marketing problem.

I could go on, but I don’t want to bore you. The bottom line is: Marketing is key to any business. The right marketing can grow your business so fast you will be astonished. So if you are having problems, go back to the basics of your marketing and find out what you have to change.

Eventually, all the time and money you spend on marketing is worth it. Even if the marketing strategy fails, it is still worth it because you found out what doesn’t work. So, keep trying and keep learning, but 50% of your effort in your business needs to be focusing on marketing.

If you are not marketing online, then you are missing out. In my opinion, 99% of your marketing should be online. You will not find a better ROI on your marketing than the marketing on the Internet.

Market or Die! It is essential. Learn from the right source to know what will work the best and do it!

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Real Estate business is now done Online

by Jesse Davis

Lets face it. Most business, some exclusively, is done online now. That is just the way the world is going. More houses are sold using the Internet than any other way nowadays, and realtors and investors are keeping up with it.

If you are an investor and have not learned online techniques, then you are missing out on some huge profit.

I know you want to stick with what you know will work, but you have to set aside at least a few hours a week learning online techniques to buy and sell your deals.

If you devote a few hours to this and get the right direction and education, I know that you will grow your business and make more money. It is totally worth all the time that you spend learning and building a presence on line.

To run with the big dawgs in real estate, also making your life easier, make sure to establish your business’s presence online. You won’t regret it.

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For true success in Real Estate you have to build a system

by Jesse Davis

If you decide that you want to get into real estate investing full time and be successful in it, or even if you want to be really good at it part time, then you have to build systems, effective systems for everything.

Some of the systems that you need to have are: 1. Lead generation (for buying houses and finding buyers for your deals) 2. Lead processing (a system to handle the leads once you get them) 3. Closing system. Most important of them all is the system to handle your buyers.

You have to have a system set up that attracts buyers to you looking for the kind of deals you have. It must be able to whittle them down. Meaning the system should separate tire kickers from true buyers, so that you don’t have to talk to everyone who shows a little interest. Without this system you will not sell a lot of properties and you will waste a huge amount of time.

Take time to build these systems. I know most investors are too busy trying to do deals. The problem is they never make an effort to build the systems and, as a result, they never seem to get to the point they want to be at as an investor.

Take the time to build the system and it will help expand your business like nothing else. This time is worth it, I guarantee it!

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Think twice when you buy real estate courses online

by Jesse Davis

I just finished another course on how to find motivated buyers that I just bought for 97 bucks. Well, I am all about finding buyers for my real estate deals, and I have purchased thousands of dollars worth of courses over the past year or so. Anyway, I went through the whole thing. It was all nice and had a bunch of videos. And after going through it all, I have to say that it was all nice and had a bunch of videos. That’s it. Totally worthless when it comes to really selling houses in today’s market.

Like many other courses, the guys who are selling this information on the Internet are not making money doing Real Estate. They are making big money selling old information on selling houses in an up market. This particular guy did talk about selling houses in a down market, but everything in his course was actually about what used to work when the market was booming.

None of the techniques I have used to sell over 70 properties in the first 7 months of this year was covered in the course. I won’t mention the name of the course, but it had to do with finding all the motivated buyers for your real estate deals. So if you stumble upon a course for 97 bucks with that headline In my opinion, it definitely was not worth it.

Here is my point: be careful what you buy online, especially when it is dealing with real estate education. Most of it is just re-hashed basic concepts with no meat.

Well, when I buy a course I didn’t find useful, I don’t ask for my money back, ever. I just move on and try something else, and always try to get something out of it. What I got out of this course was confidence. Yes, confidence that what I am doing online with my new Web site www.howtofindthebuyers.com is something totally different. What I provide is blunt and straightforward, techniques that can help you in your real estate investing in the market in 2008.

When someone saw the offer on my site and didn’t buy, I used to feel like, maybe, my stuff is not worth it. But having spent a lot of money on a bunch of courses, I know that people who didn’t join my on-line seminar are truly missing out. I am confident that my system and my teaching will help people change their lives.

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Don’t get stuck with a deal that you can’t sell!

by Jesse Davis

I talk to many investors who started in Real Estate with the goal of buying and selling houses, but they ended up being landlords – and they hated it. I personally love rental houses and own a lot of them, but these sad stories led me nevertheless to focus on finding buyers.

This same experience happened to me where I ended up having to get a loan to buy a house I put under contract and was not able to sell.

Fortunately, I had a mentor who told me to forget everything I have learned about real estate and who taught me a new way of investing – finding out what investors wanted and not what I thought they should have.

Real Estate investing, if you do it full time, is not a simple fun hobby that you do on the side like you see on TV where people flip houses and make a bunch of money. Yes, it can be done, but in my opinion the TV shows are dramatized crap that does more harm than good. They make people think one can get a junker property, invest a lot of money in it, and sell it really fast making a killing.

Wake up and get real! Most of the time it does not work like that in the real world, and you will find it out really fast. Really know what is going to sell before you put time and money in the deal.

For that you will have to find the buyers and ask them what they want. It can be an easy process if you set up a system that does it automatically. Learn the secret that most the gurus don’t tell you – how to find out what will sell before you buy.

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