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.
Start with small investments. For a beginner like you, it would be wise to start with less risky investments before you try venturing into more complicated deals. As you build experience, you will learn the proper way to handle various deals so you should be patient.
Friends, Family and Others – Those around you will not necessarily agree with your choice of occupation or investment, some may even consider you crazy and try and talk you out of it. This is a genuine way of earning an income and some people do very well out of it. You need to remain positive and focused. It is often futile trying to make all your family and friends understand what you are doing or why as no amount of explanation will make them understand or agree with you. Learn to accept their view but not adopt it.
Furthermore, property investing offers high leverage. This means that you will only have to raise a small amount of capital in order to purchase the property. Most banks will easily give you a mortgage loan to buy a house, especially if you have a good credit rating. What’s more, you can organize your payments to suit you as most banks will usually give you a maximum of 25 years to repay the loan. Alternatively, you could also use the money you receive from rent to pay back the loan.
What do you do with it once you’ve got it? Well, you can pay the taxes off and keep it to live in or rent out. Or, you can find a buyer before the redemption period is up, and let that buyer pay the taxes. Or, of course, you can do both: pay the taxes yourself, and find a buyer later.
Repair or replace the driveway if it is cracked or damaged. A driveway that appears very old or damaged will make the property itself seem like it wasn’t taken care of.
However, even though you may not be able to achieve such a huge task everyone can do something, and just starting to invest in property could help your finances a great deal.
The best way to find a power team in a short period of time is find another investor or realtor who is also an investor; ask for referrals from them. If you offer to include them in on one of your future property deals, they will most likely pass on a referral of some of their power team members.