5 Smart Tips On Property Investing
Another important criteria which needs to be considered are the price and the location of the property. Irrespective of how good the property looks from the outside, one cannot ignore the location factor. It should be decently proximal to the public transport, schools, shops, hospital and so on. These are factors which will play an important role when you actually come and start residing in the property.
The lien is just another obligation that someone has to pay in order to clear the property of the back taxes. In other states the county may issue a tax deed for the property and this is where the opportunity to invest comes in. When a property owner has defaulted or failed to pay the back taxes they do not get away even though they by for a time. But the county or state will likely step in to collect the taxes and restore the property back to a productive revenue generating position. You and I are literally paying the taxes for others in return for either the property (for tax deed property) or for our principal plus nice interest increases for tax liens.
Jane’s story, and the multitude of stories like hers, is exactly why I created The Zen Investor. I wanted to help other investors – both beginners and pros – take advantage of my hard-earned property investment experience, my wisdom and passion for real estate. To locate properties which offer fantastic value, ease of entry, stability, and very strong cash flow. Add to this a pre-arranged management system and voila! You have a Zen investment, a problem free and a passive income stream that would even please the Buddha! Remember, investing is supposed to be fun and exciting as we build up our wealth, investing in additional properties increasing our portfolios and cash flow. Unfortunately for Jane this will not be the case.
There are several ways where you can get cheap property. People will usually sell property below its market value if they need the money fast. You can find these people from public auctions, divorce settlements and bank foreclosures. In that situation the price is not the important thing for them, but the quick settlement is. Buy buying below the market price, you can sell it immediately at market price to get fast profit. You can also find old listing and ask if their property is still unsold. The person selling might lose hope of selling the property so you can get lower price.
Roger’s secret weapon was that he didn’t care whether he purchased the property or not. In fact when property investing he never gets emotionally involved. He told me he’ll make an offer on a property, not caring whether he owns the real estate. This is a secret weapon of many accomplished property investors-thought at times it can be difficult to put in practice.
Sellers more willing to take creative financing: In an up economy sellers can demand and get not only their selling price but get all cash. When the economy turns upside down so do the sellers. They are much more willing to consider other creative financing. This can take consistent and even long negotiations. I have seen sellers even take as much as 98%25 seller carries back financing after much negotiation. When the seller is behind on his payments to the bank, that bank may seriously consider a short sale or other options. There are many options that you as a buyer have when buying in a down economy that are not available to you in an up market.
What the wealthy do differently from other people, and, indeed, what each and every successful property investor does, is prepare. The successful property investor does his homework.
These are the kinds of investment horror stories that make me sick to my stomach and cringe. I fail to understand how someone with no experience swimming will so willingly jump into a pond filled with crocodiles. It’s a story of broken dreams: this woman has sunk all her savings into this project, dreaming of the day her fat goose will start laying golden eggs.