As was mentioned in a past post about safe investing, certain tax deed properties are safer than others. A few things determine a safe investment is a property's value, potential return on investment, property type and the condition of the building if any.
Although your safest bet in buying tax lien certificates is in residential homes there is much opportunity elsewhere. For example, lots can be a great investment. If the numbers work and the exit strategy are sound then what else do you need? There are so many lots available to buy at this point in time that if an investor is able to buy low and sell low then opportunities are endless. If you were to buy a $20k lot for $3k then your margins can be very high. Two years ago everyone would have tried to sell it for $20k but that's not happening in today's market. If you were to try to sell it for ½ or a 1/3 of its value then it will sell much quicker. Do that a few times and you're creating some quality flow. Although properties with quality homes on them are usually your best bet you may want to explore the possibilities of investing in other types of properties as well.
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