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Now lets look at REAL ESTATE as one of three vehicles you can take to financial freedom.
1-REAL ESTATE: There are basically three strategies
in real estate.
a)-The Long Term Strategy-Buy and Hold You buy a
piece of property and hope that with time it will appreciate in value. Real Estate takes advantage of the principle
of leverage. With a small amount of money you can control a property worth 10 or more the amount of your
b)-The Short Term Strategy-the Foreclosures and Flippers
Market . You can find distressed sellers and buy properties at lower than appraised value and sell below market
value for a quick profit.
c)-Tax Lien Certificates When people default on their
taxes the government still need that source of revenue to fulfill their commitment of providing government
services. Each state sells tax lien certificates to fill this tax shortfall.
The state collects your money from the tax liens you buy and
when people pay back their back taxes you get the interest they are charged. If people don't pay their taxes you
may even get their property for the taxes owed.
Typically the returns for paying other peoples taxes or tax
liens is anywhere from 16 to 50% as it varies from State to State. Iowa for example pays 20%.
Next: Door No. 2 - Investments