OfflineHello all! I do not know if this is the best place to post this but I will give it a shot and feel free to let me know if somewhere else would be better.
A little bit about myself: I am currently a college student and was looking at this opportunity after my mother said she bought some of the products and went to some of the seminars. I would really like to help her out in making this a profitable business as she has always wanted to make a business and after seeing the video of the college student who said he was successful in this endeavor, I figured I could be as well.
I have a few questions that I hope I can get some insight into with regards to whether or not I should look into tax liens more than the other strategies of real estate investing.
1) If you acquire a tax lien certificate, how often do you get a return on it? For example, do you only get a return after the owner of the house has paid of the tax lien or do you get a monthly return of say 12%?
2) If you buy a tax lien do you ever get the money you paid into it back? For example, if you pay $1000 for a tax lien, do you get the $1000 back plus interest on the lien if the home owner pays it off?
3) If the home owner does not pay off the lien and eventually the property becomes yours, do you get the interest back and the house or just the house?
4) Is investing in liens profitable for a family that is low on available capital or would spending our time on wholesaling and the other techniques be more realistic and achievable?
I am sorry if my questions are poorly worded or if they are just bad questions but I would really appreciate some insight!
let us know what we can help you with to get started on liens.
To answer your questions:
1: You will only get the money and interest when they pay back. It is not monthly. However they can pay back at any time so sometimes I get paid back in a week, a month or sometimes I have even waited a year.
2: Yes! you will always either get your money back plus interest or the property if they dont end up paying back. Those are the only outcomes. That is why they are so safe and secure. They work great!
3: If you dont get paid back you will just get the property.
4: You need to be doing both. Liens are a great way to get your money working for you but you will want to do other deals so you can be putting more money into them.
Those were great questions. let us know if you have anymore! would be happy to help.
These are great questions, and there is not much for me to add to the response you got above; tax liens are a great investment, but you need to have some capital that you won't need for your use in the near future. I think it would be a good idea to build some capital first, maybe with wholesaling? That's a fast cash strategy; you can download DG's book "30 Days to Cash in RE" from one of his recent weekly blogs; it shows you how to wholesale a property in 30 days
You may also want to fill out some info on your profile, so that others here can know where you are so that they can network/ partner with you
Wishing you success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Thank you guys for the great and helpful responses! I have the books you mentioned but I will need to do further studying before I feel comfortable enough to go out and perform wholesales and other strategies. For the time being, I will focus on learning how to do that effectively and then working on tax liens after we hopefully achieve some success. Do you guys have any tips for getting started in wholesaling?
Im a college student just like you and you couldn't have picked a better time and position to invest in RE. I've been a full time college student since 2011 and starting in 2012 I have been using the loans i get each semester to buy properties and put my loans to work. You'll be so thankful in the upcoming years that you took action. Good Luck!
Thank you everyone for the positive comments! I have a few more questions about typical lien deals that you have all performed if you wouldn't mind sharing them!
How have your tax liens varied and about how much does each one profit and how long does it take to make the profit? I know that they may vary by a lot but a general idea would be great of your past successes.
Also, how did you go about approaching your first tax lien? I am having a hard time stepping over and getting the courage to doing this because I do not want to be taking the wrong steps.
As always, thank you everyone for all the help and support!
As far as wholesaling goes the best and most important thing that you can be doing is building a buyer list! that is the key so be working on that.
Dont over think liens. They are super easy and the most safe investments you can make. Just make sure you are buying a lien against a property that have value and you will be fine. That is the beauty of liens because you dont have to worry. There will be only 2 scenarios with liens, Either you get the money and interest back that you invested or you will get the property. So you can go wrong unless you buy a bad property.
Liens that I buy usually pay back within the first 6 months that I bought them. sometimes I have things that go longer but I have never gone longer than a year and half.
hope that helps.
any other questions?
Hey Amil in the mean time how about going and buy a tax lien and while you are reading the books you will be making money or properties....I love tax sale properties! And seeing how you are a collage student you have the time.. Good Luck...