The Smartest Real Estate Investment

The Smartest Real Estate Investment

Did you know there is an investment that is virtually guaranteed to make a nice profit plus has the potential to return hundreds of times your original investment? Well, you need to hear about tax certificates.

You might have heard about John Beck. He sells a program called Free And Clear that teaches how to acquire tax certificates. He has a program is fairly good, but his customer service program is suspect Click here. I am not particularly endorsing Beck but I know that tax certificates can be great investments

Here is how it works. When a property owner fails to pay his property taxes the County Assessor or a similar official schedules a time to sell the tax debt to an investor. Nearly every county in the country has tax certificates in one form or another. There are several different ways to handle the details.

Weld County in Colorado had several hundred certificates and slightly fewer registered investors. I won a certificate for a middle class home and a vacant lot. They cost $900 and $120 respectively. At another sale, in Jefferson County, there were a thousand bidders for several hundred certificates so a lot of them sold for a 5% premium. I didn’t buy any.

After the auction the owner decides if he wants to keep his property, in which case he simply pays back the investor with a reasonable profit, but if he does not catch up to his responsiblity the certificate owner can end up with the property. About one in a thousand ends up going to the investor. Some out of the way counties have tax certificates that did not sell at action so investors can buy them on line.

The tax lien certificates are a good investment. I suggest you get on line and research the specific requirements for the counties you like, but do it soon becasue the sales usually take place in the fall.

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