The quick money in real estate

I might make this a series on what stuff I see for sale in real estate investing on TV. This week I happen to see a guaranteed real estate return via buying tax certificates.

Let's start buy looking at is it guaranteed rate of return. Yes it is true the rate you bid and get you'll make at the end of the certificate. Why isn't it always the best thing to do? The ad claimed 16%-21% return which in some cases could be true. Usually though there is a bidding process that you need to go thru in order to get your rate of return. Basically you bid on what your interest rate that needs to be paid at the end of the certificate.

For example if you win the bid say for 18% and the amount on the tax certificate is $2200(it varies from state to state). The tax certificate you buy is what is owed in back taxes on a particular property. So when you win the bid an agree to the interest rate you have to pay $2200 in this example for the certificate to the tax authorities immediately.

You will get paid the 18%(usually this rate is a lot less), but not til the certificate is paid for by the owner. That could take a while, but you will not make anything unless the owner pays the back taxes. When they do they must pay the back taxes and your interest rate. That is when you will be paid your interest on that tax certificate.

If they don't then yes you do get the property. This does not usually happen though, but what if it does???????

If you do get the property which is rare, you are on the hook for all the properties liabilities. For example say you get a home. The home was also used cooking meth, the EPA has added a $50,000 clean up bill in order for the home to be livable. Your on the hook for that bill, in fact the EPA will probably knock on your door and personally hand it to you. You could owe thousands in utility bills. Basically everything that property encumbers your on the hook for. So getting the property is not always the best thing. You need to do research on every property you bid on.

Their is a lot to buying these type of certificates and I highly recommend you find someone in that type of business to help you if this is what you want to do.

I personally like buying the real estate and going through escrow. This is the safest investment for real estate investors. With prices as low as they are today why not go the safe route? You can take a look at homes we buy for our investors at Rooftopvideo.com.

I also believe my system is the safest to buy real estate with. Look at our system at Rooftoppofitmaxsystem.com . Brett Young Valley Realty