A Tax foreclosure properties investment will have a much higher rate of return when compared to other types of investing. Many people are enticed because of this to invest their money in buying a foreclosed home. Buying Foreclosures through the tax system is considered as one of the safer investments as the investor has a great guarantee.

Many states in the country desire to increase the number of bidders for the tax liens by offering incentives. These incentives are likely to be almost 5% of minimum return for the investor in these properties in tax foreclosures, upon the redemption of the liens. The effort to lure investors in this way convinces many of them to go for these highly profitable deals. There are some drawbacks in tax foreclosures investments that an investor should be aware of, before getting into this kind of investment, which includes: continue reading>>.

Hans Anderson

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I received this email from Aiden Win also known as Mr. Foreclosure, a very knowledgeable investor. As I receive them I will post them here so everyone can benefit from them.

Hi,

Here is a question I get asked a lot. “Now that I have the
Foreclosure lists, how do I contact the sellers?”

You can attempt contacting the sellers in several ways. One way is
to physically go to their address and knock on their door. This is
very direct, and may show that you are a serious investor. However, this is very time consuming. Also, if you don’t know the seller’s situation, you might be wasting your time. So unless the property is not far from where you live or work, I wouldn’t recommend this method.

Another method is to call them on the phone. You can see if the
seller’s phone number is listed in the telephone directories by
searching for it by address. This doesn’t take much time at all,
and with practice, may be very effective. It helps to have some
kind of phone script that you can start using and refine to suit
your own style.

More on this later.

If you cannot find the seller’s phone number, you can try calling
the lawyer who is handling the pre-foreclosure. Depending on the
law firm, the lawyer, the secretary answering the phone, and how
polite or how skilled you are, you may be able to get the seller’s
phone number from them. Sometimes they will give it to you,
sometimes they will not. If they don’t, you can usually leave your
number with them and ask them to forward it to the seller -
indicating that you are a very interested buyer.

A method that I personally use and have found to be extremely
effective is to send a letter or a series of letters to the seller.
This method is powerful because the seller will have something
tangible in their hands.

Usually, they will keep the letter, perhaps show it to their spouse, or leave it on their kitchen table – thus constantly reminding them
that there is a buyer for their house when the time is right…you.

With the right wording and approach in your letter, you will compel
the seller to call you. And sometimes they have already made up
their mind to sell to you because they have had the time to think
it over with their spouse. By being in the “top of their minds”,
you will have a tremendous advantage.

The bottom line is, you never know what the seller’s situation is.
But if you are persistent in your efforts, it’s only a matter of
time before you find a foreclosure that will make you a handsome
profit. With each foreclosure that you look at, you will improve
your skill in making a deal happen. And it doesn’t take more than 1
or 2 successful deals to be making a healthy income!

Over the years, I have used letters, phone scripts, and other tools
that I have refined to become very effective for contacting
sellers.

And get this, I didn’t have to chase anyone, I would have sellers call me constantly to sell me their homes because my letters worked so well.

They have worked for me, so I recommend them to you.

The Lazy Man’s Way To Generate Cash From Foreclosures That Will Make You Rich!

ForeclosuresTaxSales.com

Hans Anderson

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If you have equity built up why not refinance then use the money for purchasing investment properties such as buying foreclosures or tax liens.

There are many advantages to a mortgage refinance to consider that are available to you. If refinancing is going to be a suitable option for your financial needs then you should know that you can get many different refinancing benefits, including lowering your monthly payments and consolidating your debts, among other things.

One of the best refinancing benefits that you can get in most cases is that you can have a lower level of monthly payments for the loans that you already owe. When you refinance your home you can get lower interest rates and therefore lower monthly payments as a result. This works in that every month you will send in a mortgage payment which will help to repay part of the interest and a part of the principle amount of the loan that you took out in the past. With refinancing you will be able to reduce the monthly payments that you have to make for both the interest and principle.

The reason why there are lower payments is because when you refinance your home you will be taking out a second mortgage that will help you to pay off the first mortgage. If the first mortgage was taken out many years ago and you had already paid off a good amount of it you will be able to take out a smaller mortgage because your debts will be smaller than what they were when you took out the first mortgage.

Debt consolidation is another of the refinancing benefits that you will be able to get. This is one of the refinancing benefits that will be especially useful for those who have high interest debts. These debts can include credit card debts in many cases. The equity that you have already will be used as collateral to help you get a lower interest loan as one of the best refinancing benefits. Of course, you won’t immediately get an increase in savings through refinancing for this purpose.

Debt consolidation will be useful in that it will help to make it easier for you to pay off all of your bills. It can be difficult to take care of all of the bills that you have in one month, so with debt consolidation you will be simplifying the payments that you have to make.

The last of the refinancing benefits is that you can use the equity that you already have built up. You can cash out the equity for various purposes, including financing your future education needs or improving your home. A line of credit with equity can be taken out, but the money will not be sent to you all at once. Don’t forget that while this is one of the best refinancing benefits you are using your home as collateral.

Talk with your tax accountant and find out if it would be to your advantage to use money through refinancing for real estate investing. With all the opportunities that are out there why not see if you can capitalize on them.

Hans

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The following article will clear up the myth that hard work is not required when trying to find foreclosures.

Hard Work

By Daryl White

“Don’t join an easy crowd; you won’t grow. Go where the expectations and the demands to perform are high.” Jim Rohn

Lately I’ve been hearing more and more “man, this business is hard work” from my new Coaching clients. Truthfully, I’m always a little surprised. After completing their Six Steps home study and the 3-Day Kick Start Your Foreclosure Investing, where Alexis tells them in no uncertain words “being a successful investor does not come easy, this takes hard work.” But the reality is that many people hear only about the money being made, and don’t really hear the “hard work” part. And I think I know why…

When you watch late night TV, you are told over and over again; that making money in real estate is “easy” – you just have to “know the secret systems” that they will “share with you”. You’ve heard the pitch I’m sure “just buy my program and you’ll be wealthy beyond your wildest dreams”. Or, “anyone can do this”. Or my favorite “if I can do it, so can you”. The reason that’s my favorite is because I believe they are telling you the truth, without even realizing it. They aren’t really doing it and neither can you, at least not the way they make it seem.

(If you haven’t read Alexis’ column “There are No Secret Marketing Systems” please make sure you do.)
continue reading>>

Kick Start Your Foreclosure Investing

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Foreclosures tax sales are the product of homeowners who fail to meet their tax obligations and lose their homes to the government. The government often sells properties that it has acquired through tax foreclosures to people who can pay the taxes that are owed. They are sold in proceedings during a tax foreclosure sale (or tax deed sales). Government tax sales were created to recover the taxes that the original homeowner did not pay.

In selling these properties under tax foreclosure, the government offers the liens (the unpaid taxes, the interest for those amounts, and the selling costs involved) to interested investors in a public auction. In case there are many prospective buyers of these liens, the winner is awarded the properties in any of the following methods:

-Bid Down the Interest Method – The government fixes a maximum rate of return and the bidders have to stay within that rate limit specified. The investor accepting the lowest rate of return among the bidders is declared winner of the tax foreclosure property. In cases of ties on the bids, the impasse is resolved through a random or rotational method.

-Premium Method – In the premium method, an investor who is willing to pay the highest premium on the lien amount is declared the winning bidder. This method of selecting the winner in an auction is used and preferred in some parts of the country

-Rotational Selection Method – The investor listed first in the list of bidders gets the first offer of the liens in the rotational selection method in the auction. In case he declines, the offer is made to the investor next in the line and so on. The first bidder, who declined in the first round, is offered another lien only after an equal chance is given all potential investors that are included in the list.

-Random Selection Method – In this method in an auction, the potential investor gets selected through a random process usually done through the use of computers.

-Bid Down The Ownership Method – The lien in this method given to the bidder who buys the property at its lowest cost. If he buys it at 90% of the property cost, and in case of redemption of the lien by the original owner, this investor would only be eligible for 90% ownership and the remaining ownership of 10% would go to the original owner of the property in question.

Not all liens get sold right away in an auction and when this happens, the unsold liens remain in the hands of the government entity that conducted the auction. It could conduct another auction later. In the meantime that the liens are unsold, the unsold liens are called “struck” liens.

The last thing you want is to miss out on a good investment because you don’t understand the auction procedures. Make sure you fully understand the type of auction you are going to. If your new to investing you might want to consider joining a real estate investment club

Hans

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