What would you do in this situation? - Posted by Ed Eaton

Real Estate Investing
#1

Posted by George on January 31, 2001 at 24:15:57:

I am refering to tax deed sales, this is when the actual deed is sold.

In the case of tax certificates, you can buy the ones that are close to expire the redemption period, in the worst case, you only end with some extra money (the interest rate paid), in the best case, with the deed (except in Florida) sometimes for just cents of the dollar.

Most properties you get are vacant lots

For more information on tax liens and tax certificates John Beck has a good tape set. www.johnbeck.com

#2

What would you do in this situation? - Posted by Ed Eaton

Posted by Ed Eaton on January 30, 2001 at 12:08:46:

I have about 100k to invest, but I’m also still a renter and have been trying to figure this out for awhile. Would I be better off using a big chunk of the 100k I have to put down a down payment on a house, and start paying down a mortgage rather than continue renting from someone else? It seems like I could get a better ROI using the money to invest in something else, but at the same time I see a lot of benefits to buying a house as opposed to renting. The thing is, we rent a nice big house and would have to “downsize” into a smaller place that probably wasn’t as nice because while I could afford the downpayment on a $300k house I don’t think I could qualify for the mortgage right now. I sold a business last year and have had hardly any income for the past year … I needed an extended vacation and I’ve been spending most of my time getting educated, reading books, etc. Anyone have any ideas for me? Thanks!

#3

Re: What would you do in this situation? - Posted by George

Posted by George on January 30, 2001 at 20:40:26:

This is what I will do:

invest in flipplers…with cash in hand you may be able to find great deals

Invest in tax deeds… You can buy good property for 1/5 or less.

Do that for a few years, then you may have the money to pay cash for a home…

Just my opinion, and not the gospel according to George

George

#4

Re: What would you do in this situation? - Posted by will

Posted by will on January 30, 2001 at 13:47:20:

Ed , you ARE paying a mortgage right now , only that is somebody else’s.

#5

You can always rent more home than you can buy… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on January 30, 2001 at 12:38:30:

Owning your own home should one day be a goal for you since you do still are paying down a mortgage and building equity and a valuable asset. You also get interest deductions, and well located homes tend to increase in value.

However, it most cases you can afford to RENT a lot more expensive home than you could afford to buy and own. So, if you can somehow lock in a long term lease with perhaps an option on a home that you are renting and then wisely and religously invest your $100K into other ventures, you will be able to double or triple that prinicipal in a few years.

I know a friend who prefferred to live on a sailboat rather than buy a home. He inveseted his other funds into rental real estate, notes, flippers, etc. and now is very well off.

To your success,

Michael Morrongiello

#6

Tax deeds as in tax liens? Don’t you have to … - Posted by Ed Eaton

Posted by Ed Eaton on January 30, 2001 at 20:58:37:

If you’re referring to tax liens, don’t you usually have to wait years to get your hands on the property in the unlikely event they don’t pay the taxes?