I have read through a lot of posts and have learned a lot already. I am new to investing as well as to the REIClub. I have always been interested in and always go back to realestate as my chosen career path no matter what job I have at the time. I have never had a lot of time to study or anything to learn anything about it until recently.
First a brief bio of myself. I am 26 years old, married and serving in the US Navy. My wife and I have been married for just over 2 years. When we got married I told her I never wanted to rent cause it was money down the drain. Well we were forced to rent for the first year due to credit and financial shortages. But last year we decided to buy a house. Common sense told me then to buy a duplex or triplex and live in one and rent the other(s) out. My wife on the other hand didnt like the properties that I found and wouldnt settle for anything except our brand new house that we now own financed 100% through the VA.
The house is nice and all but it doesn’t bring any money in obviously and we are still the same finacnially as we were last year. I can move and rent it out after I have lived in it for a year but cant afford another mortgage. I would like to take advantage of some of the “No Money Down” oportunities but am a little bit on the fence. I get out of the Navy in June of next year and dont want to stretch myself too thin.
Which brings me to the Tax Lien Deeds/Certificates. I have studied on them a lot for here in GA. They just seem to be to good to be true. I mean the state guaranteeing a 20% percent return on your money or you get the property!! I’m worried that Im missing something here. If not though I see it as a great way to start investing and maybe even end up with more properties.
Is this all it is cracked up to be or should I look other places?
I am just tired of living paycheck to paycheck and never having the money to do what I want when I want. I have read tons of books from Investing for Dummies to Mutliple Streams of Income and have even attended a Fortune Builders Conference and am ready to stop just reading and learning and put tires to the pavement and get things rolling.
You posted."
Which brings me to the Tax Lien Deeds/Certificates. I have studied on them a lot for here in GA. They just seem to be to good to be true. I mean the state guaranteeing a 20% percent return on your money or you get the property!! I’m worried that Im missing something here. If not though I see it as a great way to start investing and maybe even end up with more properties."
Whatever gave you the idea that state GUARANTEES 20 percent return on our investment…you are watching a late night TV Guru who specialize in selling books and tapes and seminars.
The state DOES NOT guarantee anything…you get 20 percent IF and ONLY IF the property is redeemed.
As to the property…you get a tax deed from the state and have to proceed with other remedies and court proceedings to get clear title.
Google “Jones vs Flowers” SCOTUS and read it.
Google GA statutes and read them as pertains to GA Tax Lien Sales.
Late night TV Gurus make lots of $$$$ selling the sizzle rather than the steak.
Look at it this way…all costs of start up and production having been cleared…you become a late night TV Guru.
You rent time, the later the better, on 10 TV stations, on hour at $5,000 per station or a cost of $50,000…you sell 500 sets of books and tapes on each station, total of 5,000 sold. You get a price of $99.95 or a total of (5,000 times 99.95) $499,750.00 …NOW why would you think they sell books and tapes rather than doing the actual tax liens?
YES, if it sounds to good to be true it NORMALLY is…BUY tax liens for the interest and penatlties NOT for the property…98 to 99 percent will be redeemed and the other 1 to 2 percent is NOT WORTH the taxes.
There are of course exceptions…your chances of getting a good liveable nice house are almost as good as your chance of hitting the Powerball Lottery.
As you can see above, there is no guarantee. You could buy a lien and end up with a complete loss. Mostly if you find the property is not worth the extra cost to go after the title and clean it up when the taxes are not paid.
What the county will do is process the payment for the taxes if the person who owes them wants to send in the money.
As to the other things…
Work with your wife so she understand why it is the decisions the two of you make that will define the future. Buying a new home with 100% is potentially a problem.
If you have so-so credit, learn to live on less and pay your bills. While it is not easy, little in life that is worthwhile is easy.
Focus on either getting promoted or getting out of the military. In either case, make sure you have marketable skills. Similar for her.
It will take time. There are few short cuts. You can start a second business or work with a cash rich investor who pays you to deliver. My point is you need more income and less expenses. You need bills paid on time and good credit. It can happen is you knuckle down.