Now lets look at REAL ESTATE as one of three vehicles you can take to financial freedom.
REAL ESTATE: There are basically three strategies in real estate.
1)-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 investment.
2)-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.
3)-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%.
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