Posted by Jim | Posted in tax lien investment guides | Posted on 18-06-2010-05-2008
Real estate is a hard business. Long delays, waiting, patience of the gods, huge capital requirements (ie. money down and upfront), and severe maintanence upkeep make managing and thriving in real estate one of the most challenging businesses to succeed in. It’s a miracle anyone makes income from it and doesn’t go insane. One way to get around the above problems is to deal in paper real estate, which includes tax liens, real estate notes, or any similiar mortgage instrument. You own a certificate not unlike a stock certificate or CD from a bank except that you are paid a lot more money and are secured by actual real estate property (homes, malls, shopping centers, land, etc.). If this is much easier and cheaper to do, why don’t more do it? Simple, because there is one problem with it, and that is it takes time to do (patience). Real estate naturally has a long turnover rate, even for foreclosures or delinquencies. The easiest of the bunch, and hence the fastest, is still real estate paper. There are many guides, free and paid, out there that teach you the process but most leave you gaps to fill out for yourself (bad) and yet others tell you this can be done online (true) but don’t tell you what websites do the listing and buying/selling for you (the real secret).
Now Melford’s advice isn’t for everyone. But if you’re able to follow what he and his wife have to offer on the subject of tax liens, you will be able to profit enormously.
Melford’s help is not for everyone but if you follow his advice on his website (see below), he will tell you to do the following:
1. Filter out which “deals” to go for. Believe it or not, there are still some homes or properties you should absolutely avoid. Doing so will allow you to profit either 16% return or a house for pennies on the dollar.
2. Use his tax property database system to browse the entire United States’s delinquent tax list. This cuts down the searching to a minimum of a few hours.
3. Buy tax liens or real estate notes that go for only $100-$3000 each. The government is so desperate for money that they are willing to take almost anything as long as they get their back taxes.
4. Follow the instructions exactly so you realize success and profit in about 30 days.
5. Receive tax benefits and good will from the IRS.
6. Buy tax lien deeds from all over the country every month to have a stable source of income.
Since Melford’s advice isn’t for everyone, he does have some flaws. They include…
1. This information should be priced at like $1,000. I don’t want this kind of information leaking out to everyone. I like keeping secrets that everyone else can’t have. Don’t you?
2. Helping the IRS make money. The US government will love you because you’re helping them get badly needed cash dollars to run services like the post office, roads, or courts. Also you will be helping to provide affordable housing to people (which is the U.S. government’s primary motivation besides taxes) by getting these unused homes into use as fast as possible.
3. Too much money to be made. With more money comes more taxes. Even though there are many legal tax loopholes, credits, and deferrals, paying taxes is always a pain.
4. I hate waiting. Often, you will be dealing with the government, and the government is SLOW. It can take a while before deeds or property are transferred to you. You can get around this by doing assignments (and thus “sell” the liens to a bank, letting them take title to the lien).
5. Many homeowners pay back the taxes with interest. Instead of taking over the homes for cheap, the homeowners pay their back taxes with 16-50% interest. So many times you will get your money back plus 16%-50% interest (return) on investment. Not too bad but I still rather have the big house.
6. Could fix some of the spelling typos here and there, which is a common problem amongst successful real estate investors. I bet Donald Trump & Robert Kiyosaki has a team of proofreaders to fix all their little grammar and spelling mistakes.
The Overall Verdict…
Melford’s tips will make you great money in real estate paper and tax liens. 2 million homes are in foreclosure at any given time, and a good portion of those are behind in tax payments as well. By giving the government badly needed funds, you will help lower taxes in the region in question since the government can perform it’s vital everyday functions.
If you’re not sure if this will work for you, see what these people had to say about Melford’s tips:
So if you’re ready to dive into the lucrative world of real estate and tax liens, then check out Melford’s website here. Remember, I do not know if he can help you with your particular needs or goals but his experience is gauranteed to make you richer if you listen to him.