Investing Tips for the Real Estate Investor

There are so many ways to succeed as a real estate investor, but you rarely get the full story. With the following lists of facts, I hope to expand your mind to the vast opportunities in real estate investing.

1. You can safely earn a 24% to 36% return on your money. In Iowa, tax lien certificates pay an annual interest rate of 24% and in Illinois; tax lien certificates pay an annual interest rate of 36%. County governments control the tax lien certificate sales, so the process is safe.
2. Did you know, you can buy real estate using your discount broker. Through your discount broker and through REITs (real estate investment trusts), it is possible to buy/sell ownership in just about any type of real estate (apartment buildings, commercial buildings, hotels and hospitals). Since their inception in 1960, REITs have outperformed the stock market with less investing risk.
3. Buy a tax deed in Texas and you can earn a 25% return on your money in one month. If you purchase a tax deed in Texas and the owner redeems in less than a month, you still get the full 25% interest rate. In fact, if the owner redeems in less than a week, you can earn a 25% return on your money in one week. If within six months, the owner does not redeem the tax deed, you keep the entire property for only the taxes owed.
4. As a real estate investor, you can assist with the probate process of someone you don't know and make money doing it. When heirs receive property during the settlement of an estate, oftentimes, they would rather have cash. Real estate investors that have cash and can settle the deal quickly, can purchase probate properties at a discount to market value and then resell them for a profit. As baby boomers near retirement age, estate settlements will become much more common, making probate investing a fast growing market for real estate investors.
5. You can purchase real estate with your self-directed IRA. Although most IRA custodians are only setup to buy or sell securities such as stocks and mutual funds, IRS rules allow for the purchase of real estate through your self-directed IRA. A few savvy real estate investors are starting to realize the potential of self-directed real estate IRAs and are using this investment vehicle to buy foreclosures, tax lien certificates and tax deeds. With a self-directed real estate Roth IRA, you will never have to pay taxes on your capital gains.
6. Tax liens can be purchased without attending an auction. You can puchase tax lien certificates online or through the mail. Many states allow for this, the process is called buying over-the-counter.

Don't want to attend an auction? Purchase our over-the-counter Super List and Teleseminar and invest from your home.