Creative Real Estate Investing

When non-traditional methods are used to buy or sell a property, it is termed as creative real estate investing. It refers to unusual methods used for selling or acquiring real estate. Many kinds of creative real estate investing are practiced frequently.

Popular Types of Creative Real Estate Investing Techniques:

Seller Financing: This is an unusual real estate investing technique where the property owner offers to finance the buyer! The owner typically lends a portion of the equity to the buyer and receives regular monthly payments. The mode of repayment may differ, it may be a principle only payment and interest may be fixed or variable, all depending on the contract agreed upon by both of them. Sometimes the buyer gets to assume the sellers loan, which is written as an all inclusive trust deed. Loans for commercial property are termed as assumable loans where as residential loans are termed non-assumable. These two techniques are used widely among the creative real estate investing techniques.

Lease Options: This refer to a person signing a lease as well as an option to purchase the leased property within a fixed amount of time. The options usually are for short durations of time like 12 months etc. and the lessee agrees to pay an additional amount as an option fee which will be forfeited should the option not be carried through. There are lease purchase options that make it mandatory for a lessee to buy the property with the term of the option. The price of the property is fixed at the time of the agreement and no matter what the land value; the lessee has to pay the amount stated in the agreement. Sandwich lease options are methods of buying a lease option and immediately selling it to another buyer for a profit, which will be shared by the owners.

When mortgages are defaulted the owner may try selling the property to the lender asking him to accept a lesser amount than what is owed in the mortgage.

Another technique is to buy bulk property from banks etc and sell them individually for a small profit. Using tax liens to acquire property is also a creative real estate investing technique. Investors buy tax liens from the government and should the homeowner default, the investor may foreclose the house. Some people buy a property that is ugly or old and unfit, make a few changes and give it a facelift, and are able to sell it for a huge profit.

The scope for being successful by investing in real estate is astounding. With careful planning and using creative real estate investing techniques, a person can make a huge profit as well as build a successful career dealing in real estate.

Real Estate Investing: Tax Liens

Certain measures have to be taken by the government to make delinquent taxpayers to pay taxes that are due, tax lien is one such method adopted in 18 states, where as the rest of the states use the tax deed system. In states where applicable, tax liens are sold to investors for taxes that are over due, and the investor can collect interest from the homeowners for the amount invested in the tax liens. If the homeowner fails to pay the tax lien plus interest, the investor may foreclose on the house and gets to own the property without any problems, as it is a first priority claim.

Advantages of Investing In Tax Liens:

This method of investing in real estate is gaining popularity as investors are guaranteed a favorable return on their investment or in extreme cases deeded rights to a property. The earning potential is about 16% to 24% and it is considered a low risk and a low maintenance investment. These interest rates are untouched by any changes in the Federal Reserve interest rates. Another reason why investors love this method is that they lien does not subject them to land owner liability. Tax liens are secure investments as they are but a fraction of the property value.

When property tax delinquents are given adequate time as well as warnings to pay the arrears, and they fail to do so for more than a year and a half, the tax collectors will list their property taxes liens and sell them in an auction. The property owner is informed of the intended sale of their tax lien as well as published in the local newspaper. Once the tax lien is sold, the homeowner is given a fixed time frame, the redemption period, to repay the tax lien plus interest. Foreclosure of the home is inevitable if the amount due is not paid within the redemption period. The investor is granted full rights of ownership to the property and in case the money owed is repaid while foreclosure is initiated; the investor has the right to charge the cost of he foreclosure to the homeowner too. Thus they have potential to huge profits. If foreclosure occurs the property is given free and clear of all other claims to the investor. Another advantage is that the investor need not worry about redemption as the county is in charge of that and usually they need have no contact with the delinquent taxpayer. If the redemption has been paid to the county, the county returns the principle amount plus the interest to the investor on producing the tax lien certificates. Should the same homeowner is delinquent again the investor has a priority claim on the tax lien.

There are firms that offer their services as well as products to help new entrepreneurs run a successful business.

Real Estate Property Tax Lien Investing Caution

Gather around children for a tale of royal power. Far back in history the king owned everything. (Does that remind you of Donald Trump?). Occasionally the king would grant property to a duke. Property ownership meant wealth, so the king would demand that the duke pay yearly taxes. To this very day much of the money that supports government comes from property taxes, for you see children, government is still king.

If the property owner fails to pay the tax the county government places a lien on that property. Every year property tax liens are sold at auction to the highest bidder. If the property owner fails to satisfy that tax lien the new owner of the lien can begin foreclosure and acquire the property. That seldom happens, but it is possible. Usually the liens are redeemed (paid) before the time limit expires.

You’ve probably seen the TV infomercial extolling the benefits of buying property tax liens. It’s true, property tax liens usually pay an above average rate of interest (it varies from state to state) and the lien is secured by some kind of real estate. Because of the infomercial and real estate seminars, tax lien investing has became very popular. There was a time in some counties when few people would show up at the property tax lien auction. These days the seminar gurus often arrive with bus loads of students ready to bid.

A good investment, yes, but there are some surprises for the uninformed. Because property tax sales occur each year, there may be liens on the same property, for different tax years held by different investors. Like this… Bill bought the 1980 lien; Hillary bought the 1981 lien and George was the successful bidder the next year when the 1982 liens were offered.

Here in Arizona the law is very clear that tax liens for different tax years held by different private parties have parity among themselves. So if the redemption period for Bill’s 1980 tax lien had expired without being paid he could foreclose on the property, but his foreclosure would not wipeout the liens held by Hillary and George. Bill might have a right to the property, but he could not get clear title until he pays off Hillary and George.

If Hillary and George had been influenced by that infomercial and thought that they could scoop up ownership of property for the simple price of a tax lien, well they are more than a little disappointed.

Oh, there could be one more surprise. Sometimes the state owns tax liens. When the state government forecloses all other privately held property tax liens are turned into waste paper.

Property tax liens certainly can be a good investment if you always keep one fact one mind… You are the duke and the government is the king!

About the Author

Markk Walters is an investor and manager of the Real Estate Investor Base Camp at http://www.CashFlowInstitute.com

Creative Real Estate Investing

When non-traditional methods are used to buy or sell a property, it is termed as creative real estate investing. It refers to unusual methods used for selling or acquiring real estate. Many kinds of creative real estate investing are practiced frequently.

Popular Types of Creative Real Estate Investing Techniques:

Seller Financing: This is an unusual real estate investing technique where the property owner offers to finance the buyer! The owner typically lends a portion of the equity to the buyer and receives regular monthly payments. The mode of repayment may differ, it may be a principle only payment and interest may be fixed or variable, all depending on the contract agreed upon by both of them. Sometimes the buyer gets to assume the sellers loan, which is written as an all inclusive trust deed. Loans for commercial property are termed as assumable loans where as residential loans are termed non-assumable. These two techniques are used widely among the creative real estate investing techniques.

Lease Options: This refer to a person signing a lease as well as an option to purchase the leased property within a fixed amount of time. The options usually are for short durations of time like 12 months etc. and the lessee agrees to pay an additional amount as an option fee which will be forfeited should the option not be carried through. There are lease purchase options that make it mandatory for a lessee to buy the property with the term of the option. The price of the property is fixed at the time of the agreement and no matter what the land value; the lessee has to pay the amount stated in the agreement. Sandwich lease options are methods of buying a lease option and immediately selling it to another buyer for a profit, which will be shared by the owners.

When mortgages are defaulted the owner may try selling the property to the lender asking him to accept a lesser amount than what is owed in the mortgage.

Another technique is to buy bulk property from banks etc and sell them individually for a small profit. Using tax liens to acquire property is also a creative real estate investing technique. Investors buy tax liens from the government and should the homeowner default, the investor may foreclose the house. Some people buy a property that is ugly or old and unfit, make a few changes and give it a facelift, and are able to sell it for a huge profit.

The scope for being successful by investing in real estate is astounding. With careful planning and using creative real estate investing techniques, a person can make a huge profit as well as build a successful career dealing in real estate.

Real Estate Investing: Tax Liens

Certain measures have to be taken by the government to make delinquent taxpayers to pay taxes that are due, tax lien is one such method adopted in 18 states, where as the rest of the states use the tax deed system. In states where applicable, tax liens are sold to investors for taxes that are over due, and the investor can collect interest from the homeowners for the amount invested in the tax liens. If the homeowner fails to pay the tax lien plus interest, the investor may foreclose on the house and gets to own the property without any problems, as it is a first priority claim.

Advantages of Investing In Tax Liens:

This method of investing in real estate is gaining popularity as investors are guaranteed a favorable return on their investment or in extreme cases deeded rights to a property. The earning potential is about 16% to 24% and it is considered a low risk and a low maintenance investment. These interest rates are untouched by any changes in the Federal Reserve interest rates. Another reason why investors love this method is that they lien does not subject them to land owner liability. Tax liens are secure investments as they are but a fraction of the property value.

When property tax delinquents are given adequate time as well as warnings to pay the arrears, and they fail to do so for more than a year and a half, the tax collectors will list their property taxes liens and sell them in an auction. The property owner is informed of the intended sale of their tax lien as well as published in the local newspaper. Once the tax lien is sold, the homeowner is given a fixed time frame, the redemption period, to repay the tax lien plus interest. Foreclosure of the home is inevitable if the amount due is not paid within the redemption period. The investor is granted full rights of ownership to the property and in case the money owed is repaid while foreclosure is initiated; the investor has the right to charge the cost of he foreclosure to the homeowner too. Thus they have potential to huge profits. If foreclosure occurs the property is given free and clear of all other claims to the investor. Another advantage is that the investor need not worry about redemption as the county is in charge of that and usually they need have no contact with the delinquent taxpayer. If the redemption has been paid to the county, the county returns the principle amount plus the interest to the investor on producing the tax lien certificates. Should the same homeowner is delinquent again the investor has a priority claim on the tax lien.

There are firms that offer their services as well as products to help new entrepreneurs run a successful business.

Real Estate Investing: Tax Liens

Certain measures have to be taken by the government to make delinquent taxpayers to pay taxes that are due, tax lien is one such method adopted in 18 states, where as the rest of the states use the tax deed system. In states where applicable, tax liens are sold to investors for taxes that are over due, and the investor can collect interest from the homeowners for the amount invested in the tax liens. If the homeowner fails to pay the tax lien plus interest, the investor may foreclose on the house and gets to own the property without any problems, as it is a first priority claim.

Advantages of Investing In Tax Liens:

This method of investing in real estate is gaining popularity as investors are guaranteed a favorable return on their investment or in extreme cases deeded rights to a property. The earning potential is about 16% to 24% and it is considered a low risk and a low maintenance investment. These interest rates are untouched by any changes in the Federal Reserve interest rates. Another reason why investors love this method is that they lien does not subject them to land owner liability. Tax liens are secure investments as they are but a fraction of the property value.

When property tax delinquents are given adequate time as well as warnings to pay the arrears, and they fail to do so for more than a year and a half, the tax collectors will list their property taxes liens and sell them in an auction. The property owner is informed of the intended sale of their tax lien as well as published in the local newspaper. Once the tax lien is sold, the homeowner is given a fixed time frame, the redemption period, to repay the tax lien plus interest. Foreclosure of the home is inevitable if the amount due is not paid within the redemption period. The investor is granted full rights of ownership to the property and in case the money owed is repaid while foreclosure is initiated; the investor has the right to charge the cost of he foreclosure to the homeowner too. Thus they have potential to huge profits. If foreclosure occurs the property is given free and clear of all other claims to the investor. Another advantage is that the investor need not worry about redemption as the county is in charge of that and usually they need have no contact with the delinquent taxpayer. If the redemption has been paid to the county, the county returns the principle amount plus the interest to the investor on producing the tax lien certificates. Should the same homeowner is delinquent again the investor has a priority claim on the tax lien.

There are firms that offer their services as well as products to help new entrepreneurs run a successful business.

Real Estate Property Tax Lien Investing Caution

Gather around children for a tale of royal power. Far back in history the king owned everything. (Does that remind you of Donald Trump?). Occasionally the king would grant property to a duke. Property ownership meant wealth, so the king would demand that the duke pay yearly taxes. To this very day much of the money that supports government comes from property taxes, for you see children, government is still king.

If the property owner fails to pay the tax the county government places a lien on that property. Every year property tax liens are sold at auction to the highest bidder. If the property owner fails to satisfy that tax lien the new owner of the lien can begin foreclosure and acquire the property. That seldom happens, but it is possible. Usually the liens are redeemed (paid) before the time limit expires.

You’ve probably seen the TV infomercial extolling the benefits of buying property tax liens. It’s true, property tax liens usually pay an above average rate of interest (it varies from state to state) and the lien is secured by some kind of real estate. Because of the infomercial and real estate seminars, tax lien investing has became very popular. There was a time in some counties when few people would show up at the property tax lien auction. These days the seminar gurus often arrive with bus loads of students ready to bid.

A good investment, yes, but there are some surprises for the uninformed. Because property tax sales occur each year, there may be liens on the same property, for different tax years held by different investors. Like this… Bill bought the 1980 lien; Hillary bought the 1981 lien and George was the successful bidder the next year when the 1982 liens were offered.

Here in Arizona the law is very clear that tax liens for different tax years held by different private parties have parity among themselves. So if the redemption period for Bill’s 1980 tax lien had expired without being paid he could foreclose on the property, but his foreclosure would not wipeout the liens held by Hillary and George. Bill might have a right to the property, but he could not get clear title until he pays off Hillary and George.

If Hillary and George had been influenced by that infomercial and thought that they could scoop up ownership of property for the simple price of a tax lien, well they are more than a little disappointed.

Oh, there could be one more surprise. Sometimes the state owns tax liens. When the state government forecloses all other privately held property tax liens are turned into waste paper.

Property tax liens certainly can be a good investment if you always keep one fact one mind… You are the duke and the government is the king!

About the Author

Markk Walters is an investor and manager of the Real Estate Investor Base Camp at http://www.CashFlowInstitute.com

Real Estate Property Tax Lien Investing Caution

Gather around children for a tale of royal power. Far back in history the king owned everything. (Does that remind you of Donald Trump?). Occasionally the king would grant property to a duke. Property ownership meant wealth, so the king would demand that the duke pay yearly taxes. To this very day much of the money that supports government comes from property taxes, for you see children, government is still king.

If the property owner fails to pay the tax the county government places a lien on that property. Every year property tax liens are sold at auction to the highest bidder. If the property owner fails to satisfy that tax lien the new owner of the lien can begin foreclosure and acquire the property. That seldom happens, but it is possible. Usually the liens are redeemed (paid) before the time limit expires.

You’ve probably seen the TV infomercial extolling the benefits of buying property tax liens. It’s true, property tax liens usually pay an above average rate of interest (it varies from state to state) and the lien is secured by some kind of real estate. Because of the infomercial and real estate seminars, tax lien investing has became very popular. There was a time in some counties when few people would show up at the property tax lien auction. These days the seminar gurus often arrive with bus loads of students ready to bid.

A good investment, yes, but there are some surprises for the uninformed. Because property tax sales occur each year, there may be liens on the same property, for different tax years held by different investors. Like this… Bill bought the 1980 lien; Hillary bought the 1981 lien and George was the successful bidder the next year when the 1982 liens were offered.

Here in Arizona the law is very clear that tax liens for different tax years held by different private parties have parity among themselves. So if the redemption period for Bill’s 1980 tax lien had expired without being paid he could foreclose on the property, but his foreclosure would not wipeout the liens held by Hillary and George. Bill might have a right to the property, but he could not get clear title until he pays off Hillary and George.

If Hillary and George had been influenced by that infomercial and thought that they could scoop up ownership of property for the simple price of a tax lien, well they are more than a little disappointed.

Oh, there could be one more surprise. Sometimes the state owns tax liens. When the state government forecloses all other privately held property tax liens are turned into waste paper.

Property tax liens certainly can be a good investment if you always keep one fact one mind… You are the duke and the government is the king!

About the Author

Markk Walters is an investor and manager of the Real Estate Investor Base Camp at http://www.CashFlowInstitute.com

Real Estate Investing: Mobile Homes

Real estate investing has many facets to it. It offers a multitude of ways to make reasonable profits. Your own creativity can contribute a lot to the profitability of your enterprise. One way to do this is by investing in a mobile home and locating it on the land that you own. Alternately, you may buy land with a mobile home on it. Mobile homes are located in parks and you can make a regular income by selling the mobile home while at the same time renting out the lot on which it is parked.

Advantages of Investing in Mobile Homes with Land; Combining the mobile home and the land into a package deal adds considerable value to the offering. Some other advantages are: This being a comparatively unique type of investing with fewer investors, you face less competition than does a real estate agent. Generally, you will be able to buy both the mobile home and the land for about the same amount as a mobile home on someone else?s land. As mobile home properties are much more affordable, their demand is inelastic and remains high even during bad economic times. This ensures that your returns keep coming in during downturns in the economy. Mobile home properties are less expensive to maintain and you may well be able to handle most routine maintenance jobs on your own, with substantial cost savings. It is also easier to upgrade these properties at a much lower cost than conventional fixed homes. Owning the land where the home is parked gives greater control and you do not have to put up with the whims of the property owner. You can select the tenants you want to sell the home to and how long they stay. This also ensures that the tenant cannot leave the premises until clearing his dues.

Economics of a Mobile Home Park; One unique advantage of investing in mobile homes on land is the option of being able to sell the mobile home and rent the land. It is possible to earn a return of over 25 percent of your investments in this business. Some other financial aspects are: The best option is to buy on cash and sell on terms. It is possible to arrange the finances from lenders, even if it means paying a higher interest rate on the borrowing. Higher earnings will compensate this. A promissory note, secured by a first lien in the home being acquired and guaranteeing payments will convince the lenders to part with their money. Providing seller financing will give greater returns than profit from sale of the property. The returns are increased proportionately if the park has many vacancies that can be rented out. An attractive and well-kept park will allow you to get higher rentals.

Many americans are opting to stay in mobile homes since the costs are lower as compared to fixed properties and the homes are getting improved. At the same time, the higher demand for such properties presents a lucrative business opportunity that you can well cash on.

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