If you’re considering making the move into property investing, either as a full-time job or just a way to build toward a secure future, there’s a right way, and wrong way to go about it. The fact that you’re reading and doing your research before taking that leap puts you one step ahead of most people.
Since most people know very little about property investing, they often make rookie mistakes. With the popularity of tv shows like “Flip This House” and “Curb Appeal”, people have gotten the idea that there are millions to be made in flipping properties, just by cleaning them up and doing a cosmetic overhaul. While there is some money to be made here, it’s not as easy as it looks to locate the right property in the right area for the right price. It’s a very competitive field, and there are a lot of pitfalls and risks, as well as time investment, that when considering all the possible ways to go about property investing, makes rehabbing and flipping properties just not the best option.
Usually the next place people look is mortgage foreclosures. After all, going after homeowners who are about to lose their properties due to non-payment of their mortgage seems like a gold mine. Unfortunately, this, too, is a very crowded niche. Most homes don’t have a lot of equity, and the headache of dealing with the large mortgages and other liens and debt issues that come along with this property is usually enough to weed out most “weekend” investors.
If you’re still left standing after going that route, the next place most people turn to is investing at tax sale. Most states sell either tax liens on delinquent properties, or the deeds to the properties themselves at auction, to collect the back taxes. This is a great route to go in theory, especially if you’re an investor with a lot of money. But if you’re still small-time, you’ll find that most sales are filled with bidders who will bid against you to the point where it’s no longer profitable for you to buy the properties or liens you had your eye one. So what’s the little guy to do?
Get creative, that’s what. You’ve got to find a way to get more properties, with little competition, without having to lay out a lot of cash for a lot of risk. The secret is, tax delinquent property is STILL the best way to begin property investing- but you’ve got to learn how to get the properties from the owners BEFORE the tax sale. It’s a method known as “deedgrabbing” and it’s still a well-enough-kept secret that there’s lots of profits to be made- and in current economic times, there are more tax delinquent properties than ever.
Want to learn the secrets of deedgrabbing? Go to deedgrabber.info.
Olliver Kennedy is a successful entrepreneur and real estate expert.
[tags]property investing, tax sale, mortgage foreclosure, tax foreclosure, tax lien, tax deed[/tags]
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