Tax Deed Investment Case Study
Do you think it's probable that you can buy real estate for pennies on the dollar and then unload it, making a huge return on your investment? You may have listened to stories like this hyped by people who want you to think it's effortless. Honestly, it can be done, but only if you are properly prepared. Where can you find the information you need? Can you go to a reference center, or maybe a bookstore and find the information? Doubtless not. But there is an even simpler way - and that's asking.
What Do You Know?
Begin by understanding that you just don't know what you don't know and the intelligence that allow you to make a profitable deal won't be found in newspapers, books, TV or the Internet. The truth is that very few investors work at seeking out the good deals so they can make good money.
Let's examine the story of a woman named Sandra. After learning with a course on tax lien certificate and tax deed investing, she was psyched-up to make real money. She did her homework and opted to start looking for parcels in Warren, MI. She flew there and went immediately to the county court house.
She started researching by asking questions. Promptly she asked for a list of real estate the county was foreclosing on for delinquency of the property tax. These were real estate leftover after the auction that no one else was enticed by. Sandra established a bond with the clerks at the courthouse and they graciously answered her questions. They helped Sandra by providing her a list of delinquent Tax Liens and Tax Deeds up for grabs to the public over the counter.
Sandra was able to locate a real estate that she purchased for $427 via tax deed. This was a three-bedroom, two-bath house - for only $427. The state of Michigan actually sells tax lien certificates but this parcel had gone unredeemed too long and it was available.
You might be thinking that's impossible. When is the last time - if ever - that you heard about someone acquiring a home for $427? Yet that's absolutely what Sandra did. She bought a Treasurers Deed for the property over the counter at the Warren, MI courthouse.
The key to Sandra's accomplishment was simply asking. If she hadn't taken the time to chat with the clerks, she may never have found such a lucrative deal.
It Doesn't Stop There
But Sandra couldn't gain from the deal until she cleared the title. This is a legal process in which the tax-defaulted owner must be warned and receive due process of law before the property became hers.
The residence wasn't in the nicest order, either. Sandra had to pay for repairs and renovations. But after the labor was completed, Sandra quickly found someone who wanted to rent the house. After leasing it to the renters for three years for $500 a month, the residents wanted to buy it and Sandra became their homeowner's loan holder as well as their landlady.
So the purchasers had compensated Sandra $500 a month for rent for three years and then began making mortgage payments of $500 for an additional seven years. Do the math - $500 a month for 10 years = a whopping $60,000!
This is just one valid success story of an individual just like you who made a nice gain from investing in tax lien certificates and tax deeds.
About the Author
Ted Thomas is America's Tax Lien Certificate and Tax Deed Authority. He has helped thousands of students graduate from his investment courses and make amazing profits. Visit Ted's website and receive your FREE copy of the 57-page Start Up Guide now at http://www.tedthomas.com.