Get the confidence and tools to take advantage of this growing method of investing
Tax liens sales and tax deed auctions, conducted by governmental agencies for delinquent taxes on real estate, are not new they have been around for more than 200 years. But until recently, they remained a small niche market for investors. However, as more people become delinquent on their real estate taxes due to the increased foreclosure market, and local governments look for revenues wherever they can find them, this investing methodology has become increasingly popular - and it can be done from anywhere. Zero Risk Real Estate shows readers exactly what to look for, what to avoid, and how to get the biggest return with the smallest amount of risk.
Explains how to utilize the internet for research and investing from anywhere in the world!
Gives step-by-step advice on how to determine your investment objectives and where to find tax sale listings
Details how to take advantage of "over-the-counter" bargains and increase your returns
Shows what to do once you have your new tax certificate, and how to "cash in"
This is not a get-rich-quick infomercial approach it is a real investing strategy that is expected to grow over the next several years as an appealing alternative to the stock market and other investments. Using real-life examples and case studies, this book walks you through the process step-by-step to make it easy for beginners, and shares advanced investing techniques for more experienced investors.
Chip Cummings is host of the nationally syndicated Financial Fitness Show and the past president of the Michigan Association of Mortgage Professionals, with over $1 billion in mortgage and real estate (buy/sell) volume. He provides consulting services to leading institutions and speaks to thousands of industry professionals each year. He has been featured on Fox News, NBC News, and MSNBC and is the author of Cashing In on Pre-foreclosures and Short Sales (Wiley).
Foreword Sharon Lechter xiii Acknowledgments xv Introduction xvii Downloadable Letters, Forms, and Scripts xix Demonstration Videos xxi Chapter 1 Understanding Tax Liens and Deeds 1 Real Estate and the Property Tax Process 4 What Is a Tax Lien? 6 What Is a Tax Deed? 9 Understanding Redemption Periods 11 What About the Real Estate Market Collapse? 12 What Makes These Types of Investments Zero Risk? 14 Chapter 2 Getting Started 17 Selecting Your Location 20 Finding Tax Sale Listings 24 Filtering Your Data 32 Evaluating Different Types of Properties 33 Conducting Internet Property Research 41 Recruiting Local Help 43 10 Rules for Qualifying Every Property 46 Setting Your Bids 46 Chapter 3 Going, Going, Gone! 49 The First Auctions 51 Types of Auctions 52 Onsite Auction Tips 56 Online Auctions Bidding in Your Pajamas! 60 Online Auction Strategies 61 Cancelling Your Bid 63 Over-The-Counter Bargains 64 Paying for Your Winning Bid 65 Chapter 4 Protecting Your Investment 67 What To Do First 69 Protecting Your Tax Lien Interest 72 Protecting Your Tax Deed 73 Insurance and Property Maintenance 75 What To Do When Your Property Doesn t Redeem 76 Chapter 5 Taking Control of Your Property 79 Do You Really Want To Own It? 81 Understanding the Foreclosure Process 83 The Costs of Foreclosure and Possession 86 Adverse Possession 87 Eminent Domain and Condemnation 88 The Art of Eviction or Not! 89 Dealing with Former Owners 92 Other Legal or Equitable Interest Holders 94 Chapter 6 Avoiding and Eliminating Risk 95 Risk Elimination 97 The Risks of Illiquidity 103 Managing the Property 104 Chapter 7 Liquidation and Cashing In 107 Creating an Exit Plan 109 Hold and Rent Strategy 111 Rapid Liquidation 116 Creating Long-Term Wealth Using Installments 117 Chapter 8 Advanced Strategies 121 Using Traditional Funding 123 Tapping into Private Money 124 Corporate Investing 125 Locating Investment Capital 126 Investing Using Retirement Accounts 127 Tax Strategies 130 Unique Types of Property Deals 131 Chapter 9 Tracking Your Investments 133 Setting Up a Simple System 135 Accruals and Yield Information 138 Maintaining Contacts and Lien Lists 139 Generating Reports 139 Chapter 10 Taking Action 143 What To Do Now! 145 The Complete 13-Step Checklist 145 Measuring Your Success 151 Setting Goals and Evaluating Results 152 Final Thoughts 152 Appendix A 101 Online Resources 155 Appendix B State Listings 161 Glossary 165 About the Author 179 Index 181 Free Bonus Forms and Videos 186