Wednesday, 26 January 2011 11:03
Get Your Money Faster with Tax DeedsWritten by NRI Support
Many students ask "what is the fastest way to get my money working for me where I can see results quicker?' This is a question that we all want to have the answer to. Let me first say that working with tax deeds will yield more money; however, there is a bigger risk and typically requires larger capital investment. Let me explain what I mean. When you are working with a tax deed you are actually buying the property. Let's say you are the highest bidder and have won the property. Now you are a property owner. It didn't take very long, just a few hours at the auction to own this property. Now you want to go to the recorder's office and put the title into your name so that you have completed the process. This is a great way to get going in the fast zone. Once you own a property then you can do with it whatever you want. You can sell it making a profit, remodel and then sell making an even greater profit, or you can rent it out guaranteeing a cash flow every month, or you can live it in yourself and be mortgage free and rent free. With your tax deed investment, you are able to open the door to make money sooner than later, but in order to buy a tax deed you generally have to spend more money. Tax liens are typically sold through the auction for only the amount owed to the county by the property owner. But because you are buying the actual property, and not just a tax lien certificate, when buying a tax deed, you typically end up paying more. The bidding starts where the county is owed, but through the auction process bidders will generally bid up the price closer to fair market value. Therefore, you tend to spend more on tax deeds. There are many variables that come in to play when you own a property. Tax deed investing is a great way to get a jump start into the real estate world. The risk with ownership is that now you are responsible for the taxes. If you are borrowing money to get started then you want to make sure that you have an exit strategy so that you make money from your investment. This could include finding a buyer, renter, or perhaps you want to donate it to charity and use it for a tax deduction. There are many things that you can do with property once you become the property owner. Just to make sure that you have things in place, you can line up a buyer and use a real estate agent if you want to get the ball rolling faster. Working with tax deeds can be an accelerated way to make money faster.Last modified on Wednesday, 26 January 2011 11:15
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Published in Tax Deed Investing