Another Offline Model - Flipping Foreclosure Properties?

44 replies
I had a friend of a friend who recently made a 48k profit on a house he bought for $1500 by paying the tax lein... he had to wait 12 months for the house to be finally forclosed, but he was able to sell the house for a third of its worth and flip it right around like nothing because he got it so cheap.

I have to admit... those kinds of deals where you make 50-100k per shot are pretty dang attractive.

Im writing this because I just quoted "I have never seen success achieved casually", but this guy didnt really work too hard.

What I want to know is, is this guy a shot in the dark?

Now I know that telemarketing is realistic, and can be systematized and works predictably, but I also know that 80 out of 100 people who think about it will walk away saying it doesnt work or for some reason its too hard...

That doesnt mean it doesnt work like a machine though...

Likewise, many try buying these tax liens...or whatever...and many say its all too much red tape or doesnt work...

What I want to know is if there is anyone here who has made it work consistently. I'd love to hear your experience.

Sure I have been seeing these ads for 20 years, but I recently had a brush with someone who had an amazing success with it, so it has me thinking a bit.

Not too much trouble just to ask my fellow warriors what their experience has been with it . I know we are all opportunity seekers at the core, so I figure someone may have some experience in this offline area.

I think its a legit subject we should cover in this subforum because it applies to our specialty "Offline" marketing.

Thanks.

Ps. the thing that gets me is that during the interim he didnt buy more properties and make more deals...at this rate he will be 8 months in between deals waiting on forclosures and not buying again until the last deal is complete...


Has anyone ever really got this pipeline pumping fulltime around here?
#flipping #foreclosure #model #offline #properties
  • Profile picture of the author Michael Bucker
    Freakin mr machine at it again. I don't know how you do it. Only one answer. Machine! Hey if you get time hollar later tonight I have new idea or update on something.
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    • Profile picture of the author John Durham
      Originally Posted by Michael Bucker View Post

      Freakin mr machine at it again. I don't know how you do it. Only one answer. Machine! Hey if you get time hollar later tonight I have new idea or update on something.
      Not exactly "machining", just asking the Warriors about their experience with it...Pondering more really... Hey you used to flip some real estate here and there...did it have anything to do with this tax lein stuff?
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  • Profile picture of the author RedShifted
    I can tell you from what I've researched it seems almost NOONE makes money on these tax liens.

    Then is that infomerical I saw 2 weeks back about some guy selling some "wealth" system forgot what its called. Well is was all about tax liens. I went online to research for a few hours and everything I read about it seemed like a scam. People paying tons of money for some secret info about tax liens to make them rich, and noone made anything.

    I also read lots of stories about people buying the liens outside this scam, and not making anything off them. Its one of those trades I think you really need to be an expert at to make money.. like anything. Too much learning for me and too little worldly evidence to make me believe anyone can do it. It just does not seem common.
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    • Profile picture of the author iAmNameLess
      Originally Posted by RedShifted View Post

      I can tell you from what I've researched it seems almost NOONE makes money on these tax liens.

      Then is that infomerical I saw 2 weeks back about some guy selling some "wealth" system forgot what its called. Well is was all about tax liens. I went online to research for a few hours and everything I read about it seemed like a scam. People paying tons of money for some secret info about tax liens to make them rich, and noone made anything.

      I also read lots of stories about people buying the liens outside this scam, and not making anything off them. Its one of those trades I think you really need to be an expert at to make money.. like anything. Too much learning for me and too little worldly evidence to make me believe anyone can do it. It just does not seem common.
      A guy I know... wouldn't really call him a friend, but I've done some work from him and learned a lot from him. He flips properties, owns a couple bars and restaurants and a strip club.. I know that he did do some of this, not sure how much but he was pretty successful at it.

      I know he flipped an apartment complex and a few other houses.

      I think his main goal was monthly income though, so he ended up with about 30 rental properties. Owning the strip club, that was a complex situation which I won't get into here, but he was paying 6K/week for the building. There was an original owner, and really, there was a lot to that but I'm not going to get into all that. LOL.

      The club business kind of sucked his money from all the other streams of income... so it's hard to say if he was really successful at it or not. He did file bankruptcy, but kept all the properties and I think it's all going fine..

      It seemed to me, that he was doing better with the rental properties than anything else. Other than that, I don't have too much info. He got into some commercial real estate too, but I think that was a bust.

      My step father, has a remodeling and construction business.. he was looking into doing this as well, found a lot of super cheap properties but not sure if it was just the tax lien type thing. He ended up not doing it, not sure why he backed out but he's owned a few successful businesses and flips THEM lol, so there had to be something he didn't like about it.

      I'm also interested in hearing more.. It's hard to see a losing opportunity here..
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    • Originally Posted by RedShifted View Post

      I can tell you from what I've researched it seems almost NOONE makes money on these tax liens.

      Then is that infomerical I saw 2 weeks back about some guy selling some "wealth" system forgot what its called. Well is was all about tax liens. I went online to research for a few hours and everything I read about it seemed like a scam. People paying tons of money for some secret info about tax liens to make them rich, and noone made anything.

      I also read lots of stories about people buying the liens outside this scam, and not making anything off them. Its one of those trades I think you really need to be an expert at to make money.. like anything. Too much learning for me and too little worldly evidence to make me believe anyone can do it. It just does not seem common.
      it does work, but people who get into it think it's a quick money maker, but it is more like an alternative or an addition to your retirement. I say that becuase you have to wait so long before you can "own" the property because each state and then county is different, but it does work. My dad is doing it and like I said, it is a slow stream of income, but once you "own" the property, then its well worth the wait, as mentioned in the opening post...
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      • Profile picture of the author delmo
        Chris,

        Would you mind elaborating on what you did?

        Anyways, here's a check I made when I was 23-24 years old. I got the property for 30k and flipped it for $127k. I think I worked less than 10 hours on this deal.

        I knocked on doors and called them for this deal. Def worth hitting the street.
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      • Profile picture of the author DWolfe
        Originally Posted by WarriorInTraining View Post

        My dad is doing it and like I said, it is a slow stream of income, but once you "own" the property, then its well worth the wait, as mentioned in the opening post...
        It is a slow stream but depending where you buy you can get good deals. You will need a property manager to deal with headaches. Here is one with a tenant in place. 10 Grand for home $500.00 for rent. A buyer would have to due thier due dillegence. 17 Lauderdale Ave, Youngstown, OH 44505 MLS# 3291942 - Zillow

        There are severeal areas in the Country you can buy REO's and Foreclousers cheap and make a slow stream of passive Income

        *** Please do not contact me about this property - I do not own it **
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        • Profile picture of the author Benjam1n
          Originally Posted by DWolfe View Post

          It is a slow stream but depending where you buy you can get good deals. You will need a property manager to deal with headaches. Here is one with a tenant in place. 10 Grand for home $500.00 for rent. A buyer would have to due thier due dillegence. 17 Lauderdale Ave, Youngstown, OH 44505 MLS# 3291942 - Zillow
          Last sold 2009 for $13,000??
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  • Profile picture of the author John Durham
    @Red Shifted

    I saw that guy too he says you make a guaranteed 16-25% even if the deal falls through... a deception?
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    • Profile picture of the author RedShifted
      Originally Posted by John Durham View Post

      @Red Shifted

      I saw that guy too he says you make a guaranteed 16-25% even if the deal falls through... a deception?
      Well I can't speak on that tbo. I can say that the guy selling this tax lien system has this background..

      Over his career, Givens was the target of dozens of lawsuits and two court cases for defrauding customers, one in California and one in Florida. The California fraud case found that he had mislead his customers by claiming that he had made his money using his financial strategies, rather than by selling his financial strategies, and he was ordered to refund $14.1 million to his customers. Givens settled the Florida fraud case. Givens was also sued for advocating dropping insurance to save money by a woman whose husband was killed by an uninsured driver. Givens settled the insurance suit in 1993.
      "Givens lied about his past," said John W. Jeffrey, an attorney for the plaintiffs. "The way he made his money was not by using the strategies he sold but rather by selling the strategies themselves." A month after the verdict in California, Givens' company filed for Chapter 11 bankruptcy protection. He lost control of the business in 1997. A judge approved a plan to repay creditors 25 cents on the dollar. To protect himself from creditors, Givens transferred most of his assets to limited partnerships, frustrating lawyers who tried to collect for their clients.
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  • Profile picture of the author redcell1
    Money can be made however you need capital for something like that. Not to mention renovation costs, upkeep and etc. Also different states have different rules as for flipping. I know this because I have family who does nothing but flip properties. They don't do 12 months though rather 4-5 months at the latest.
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    • Profile picture of the author John Durham
      Originally Posted by redcell1 View Post

      Money can be made however you need capital for something like that. Not to mention renovation costs, upkeep and etc. Also different states have different rules as for flipping. I know this because I have family who does nothing but flip properties. They don't do 12 months though rather 4-5 months at the latest.
      Excellent input.

      Yes there may be renovations and added expenses that must be considered... in my friends case there werent, but I have to think that's isolated, or he just took the time to really pick a great deal.

      It would be good to shake down the variables here and give warriors a realistic perception of those shows... Hopefully it will shake out to be a great model, but maybe not. Thats what this thread is for.
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      • Profile picture of the author redcell1
        Originally Posted by John Durham View Post

        Excellent input.

        Yes there may be rennovations and added expenses... in my friends case there werent, but I have to think that's isolated, or he just took the time to really pick a great deal.
        It could be either honestly. With real estate not one deal is the same as the other. Each one has their own challenges and setbacks. If possible look up local real estate investment groups in your area. They are 99% of the time free meetings where you can get the pulse of the real estate investing "scene" in your area.Also check out biggerpockets, the WF of real estate investing.
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  • Profile picture of the author John Durham
    I dont know if we are referring the same guy or not redshift... I dont even remember the guys name on TV, I know my friend bought a carlton sheets course years ago, and just now started applying the knowledge.

    So we know "Givens" is a deceiver... but still, is there a realistic business model here that can work?

    There has to be something to it. Just like Don Larpe's classifieds ads... alot of people felt it was a scam... but clearly his system DOES work... I know that from experience. Classified ads works, even though thousands say the whole idea is a scam...

    You can learn enough from Don lapre to just "start learning" though, his course isnt going to change your life unless you are willing to survuve failures and testing...

    But what of the guys who made it through the testing phase successfully?

    Those guys have something to share.

    I have to admit the prospect of this is pretty exciting. Not losing sleep or anything but its worth knowing more about.

    It would be cool to flip a 100k deal every other month on the side.

    Originally Posted by iAmNameLess View Post


    I think his main goal was monthly income though, so he ended up with about 30 rental properties. Owning the strip club
    He has monthly income, and he owns a strip club... what more could a man want? Lol
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    • Profile picture of the author Chuck Avants
      I know a guy who was renting a house from a guy who didn't pay the taxes and my friend ended up buying the house for a very low price at a tax auction or lien auction. Either $1100 or $11000--can't remember

      Most all of the real estate programs you see work. Carlton Sheets has hundreds that say it works and thousands who say it doesn't. Robert G Allen bought a bunch of houses no money down.

      I have a friend who buys junk houses, fixes them up and sales them on a rent to own plan. He gets a good option payment of $5000 or more and then ends up taking most back. The people can't pay the rent and just walk away. So he fixes them up and does it again. He has had houses given to him.

      You do need some knowledge to this but it is like buying a used car cheap and trying to flip it by cleaning it up and marketing better. Sometimes you get a deal and sometimes you get a lemon.

      If you go to your local real estate investor club(just google it) you will find people making money doing all the things you see on TV. You can find the money you need to invest in a flip.

      What you do might work well in this business. Get a good list of houses that have problems like cosmetic work and call them all and offer 40 cents on the dollar. You will find someone who will sell. Of course then you do your due diligence before the sale is finalized.

      You could call people who are about to go into foreclosure and find good deals. Check the laws. But there are guys who knock on the door and tell the people they know they need help and are there to help bail them out. Might seem a bit cruel and they do get kicked off the property often ---but it only takes one a month or every few months to make a good living.

      The deal is there is lots of ways to buy real estate cheap. there is lots of competition but there is also lots of opportunity. By making offers you at least have a chance
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      • Profile picture of the author vndnbrgj
        Originally Posted by Chuck Avants View Post

        I have a friend who buys junk houses, fixes them up and sales them on a rent to own plan. He gets a good option payment of $5000 or more and then ends up taking most back. The people can't pay the rent and just walk away. So he fixes them up and does it again. He has had houses given to him.
        I met a guy that worked at the corporate office for Garmin that did the same thing.
        He and his partner, purchased properties below market value.
        Fixed them up, and put them for sale on a land contract.
        Asked for $10k down, and $1k + /month for rent.
        With a 3-5 year balloon payment. (A balloon payment is when you must agree to purchase the property by either getting a mortgage to pay the property owner for the rest of the home, pay by cash, or whatever)

        He said no one has ever been able to pay off their land contract. When they default, he gets to keep all the money. (That was part of the contract)

        Plus, he doesn't have to do a lot of repairs due to the fact people keep up on the house in hopes of buying it at the end of their land contract.
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        • Profile picture of the author John Durham
          Originally Posted by vndnbrgj View Post

          I met a guy that worked at the corporate office for Garmin that did the same thing.
          He and his partner, purchased properties below market value.
          Fixed them up, and put them for sale on a land contract.
          Asked for $10k down, and $1k + /month for rent.
          With a 3-5 year balloon payment. (A balloon payment is when you must agree to purchase the property by either getting a mortgage to pay the property owner for the rest of the home, pay by cash, or whatever)

          He said no one has ever been able to pay off their land contract. When they default, he gets to keep all the money. (That was part of the contract)

          Plus, he doesn't have to do a lot of repairs due to the fact people keep up on the house in hopes of buying it at the end of their land contract.
          Well, he does give them a legit opportunity to buy, and it isnt his responsibility to be accountable for THEIR decisions, only to put his offer out for sale and see who takes it... so its not his fault if they lose it.
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  • Profile picture of the author vndnbrgj
    Interesting thread you started here John....

    This is entirely possible. Matter of fact, I was just looking for the next auction in my area. I bought my home through an auction... Not a tax auction, but an auction.
    Almost bought another home last year at a tax auction... Lost it by $250.
    I had done my research, was bidding on the property, was the winning bidder.
    Going once, Going twice,.... $30,250 screams some realtor already in line to pay for a previous property. Damn it!
    I watched 2 people buy a whole undeveloped sub division. One person lived at the front of the sub division, and the other lived at the back. The company that was supposed to be developing the lots, lost the property due to taxes. The two picked up over 30 properties between the two. Now, they own the whole subdivision. And said they would decide when they would sell, and who they would sell to.

    Sorry.... about the 16%-25%.... In my area, when someone fails to pay the taxes on their property. This starts the foreclosure process. When this happens, you can pay the back taxes. They have 2 years from the default date to repay their back taxes, or the property will go up for auction.
    But, you paid the back taxes.
    So, if they pay it back, they have to pay you interest. The amount is set when you purchase and varies.
    If they don't pay it back, the property goes to you.

    But, you have to wait two years from the date of default to get the property.
    Or, they can pay you back any time up to 2 years from the date of default.

    Then, there are tax auctions every year for the properties that have defaulted over two years ago. What they are called varies from state to state. But, the common names are, tax lien and tax deed.

    Hope this makes sense.
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    • Profile picture of the author John Durham
      Originally Posted by vndnbrgj View Post

      Interesting thread you started here John....

      This is entirely possible. Matter of fact, I was just looking for the next auction in my area. I bought my home through an auction... Not a tax auction, but an auction.
      Almost bought another home last year at a tax auction... Lost it by $250.
      I had done my research, was bidding on the property, was the winning bidder.
      Going once, Going twice,.... $30,250 screams some realtor already in line to pay for a previous property. Damn it!
      I watched 2 people buy a whole undeveloped sub division. One person lived at the front of the sub division, and the other lived at the back. The company that was supposed to be developing the lots, lost the property due to taxes. The two picked up over 30 properties between the two. Now, they own the whole subdivision. And said they would decide when they would sell, and who they would sell to.

      Sorry.... about the 16%-25%.... In my area, when someone fails to pay the taxes on their property. This starts the foreclosure process. When this happens, you can pay the back taxes. They have 2 years from the default date to repay their back taxes, or the property will go up for auction.
      But, you paid the back taxes.
      So, if they pay it back, they have to pay you interest. The amount is set when you purchase and varies.
      If they don't pay it back, the property goes to you.

      But, you have to wait two years from the date of default to get the property.
      Or, they can pay you back any time up to 2 years from the date of default.

      Then, there are tax auctions every year for the properties that have defaulted over two years ago. What they are called varies from state to state. But, the common names are, tax lien and tax deed.

      Hope this makes sense.

      Good stuff. Keep it coming. I want to hear the neg perspectives too but those are always going to be 80% of all stories, you have to consider the sources. It would be great to hear from some more who make it work or know of others who do.

      There is always a way to make something work and a way to make something that works...NOT work. lol
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  • Profile picture of the author rolltide
    put out about 10 bandit signs and see if you get a few calls
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  • Profile picture of the author MartinBuckley
    John,

    My father has made money with tax lien cetificates over the past 10 years.

    I honestly don't know all the details of what he does, but he has talked to me in the past and told me that he simply pays the home owners back taxes and he is given a tax lien that intitles him to a lien on the home owners house and they have to pay him back all the money he paid, plus 12% interest.

    He has never gotten ownership of any of the house he has paid taxes for, but he told me he does it because he makes more interest of his money from doing tax liens, then he would by just putting his money in the bank or in cds and tax lien certificates are backed and guaranteed by the goverment, so he knows he won't lose any money, it just a waiting game where you may have to wait a whole year to get your money back with the interest.

    Like I said I don't know all the fact, but I do know my father makes money with tax liens, so I know they are legit.

    I hope this helps.

    Martin
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    • Profile picture of the author chemo38
      I researched tax lien sales and have actually been to several auctions in different states. This method of making money is now OVER-SATURATED! Too many people at the sales AND most properties are vacant land. I went to sales in Arizona, (all tax lien sales are in the month of February for ALL counties), and Florida. Most tax lien sales are now on the internet so ANYONE can bid.

      Lastly, most TLCs, tax lien certificates, are "redeemed" by either family members or banks. My experience taught me that less than 5 PERCENT of tax lien holders will actually get the property.

      Bottom line, not worth your time and money and DEFINITELY don't buy some "infomercial" crap seen on late night TV.

      chemo38
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      • Profile picture of the author Chuck Avants
        Chemo38--there is a lot of competition but every day someone makes or gets a deal. It might be a single or a home run. Most likely the ones who get them are the ones who don't quit.

        I know several people who have been given cars that run just because they kept looking for cars to buy. In a post above I tell about my friend who has been given at least one house.

        I also know a lady who bought a house for $2800 because a guy took a loan against it---couldn't pay it back-- and the loan company was about to take the house. She paid off the loan and got the title. I missed out on this one because she had a better relationship with the guy---I only had just met him. And no I didn't even get a chicken dinner for bringing it to her attention.

        Go to a local REI club or real estate investors club. Someone there can teach you what you need to know. They may charge you something and most likely it will take more than a couple tries.
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        • Profile picture of the author ShayB
          I don't know about tax lien properties and such, but I have a good friend that makes a killing by buying mobile homes and reselling.

          I can post more about that if anyone is interested. It's fairly simple.
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          • Profile picture of the author sandalwood
            Originally Posted by ShayRockhold View Post

            I don't know about tax lien properties and such, but I have a good friend that makes a killing by buying mobile homes and reselling.

            I can post more about that if anyone is interested. It's fairly simple.
            Shay,

            Love to hear more given how our client is involved w/mobiles. I might learn sumtin.

            Tom
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            • Profile picture of the author ShayB
              Originally Posted by sandalwood View Post

              Shay,

              Love to hear more given how our client is involved w/mobiles. I might learn sumtin.

              Tom
              I'll post about it later tonight if I can. If not I can do it tomorrow.

              (I'll start a new thread. I don't want to hijack John's. )
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              • Profile picture of the author John Durham
                Originally Posted by ShayRockhold View Post

                I'll post about it later tonight if I can. If not I can do it tomorrow.

                (I'll start a new thread. I don't want to hijack John's. )
                Hijack away my friend. I have no agenda here. I came to learn! Feel free to take over and teach us!
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                • Profile picture of the author Vikuna2009+
                  If you are going to buy a mobile home, it helps to have an "in" with the park manager. It also helps to know a bit about different mobile home parks and what you can be "allowed" to do. Giving the manager a referrall fee (even though you are not supposed to) can get you a heck of a deal. Do some cosmetic fix-up, give another referrall fee when the manager finds you a buyer and do owner financing, you can legally charge 10% interest at terms suitable to you.

                  But, you need to find the deal before any lawyers get involved because otherwise you get stuck paying the legal fees as well, usually around $4,000-$6,000. It's a pretty shady biz and not to my liking but it happens all the time.

                  As Martin pointed out, Lonnie's books are truly an eye opener. You can also google "mobile home university", its big biz teaching others how to do it.

                  What's much better is storage facilities. Not sure today how much room there is in that market but people used to make a killing with it before. I haven't really kept up with it but worth looking at. At least you don't have to deal with evictions of people, just stuff that becomes yours that you then can sell,

                  Eva
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          • Profile picture of the author MartinBuckley
            If anyone wants to really learn how to make a killing investing in mobile homes, they should do a search online and buy books by Lonnie Scruggs, his first book Deals On Wheels was an awsome read and I learned alot about how to make money with mobile homes.

            All the best,

            Martin

            Originally Posted by ShayRockhold View Post

            I don't know about tax lien properties and such, but I have a good friend that makes a killing by buying mobile homes and reselling.

            I can post more about that if anyone is interested. It's fairly simple.
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  • Profile picture of the author Mobile Tactics
    The key is to purchase free and clear properties before they go to sale, so when those people at the auctions are bidding up the price, your name is on the title, so you get the overage, or the difference between the tax amount owed, and the sales price.
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  • Profile picture of the author PhilaPM
    Hey John I started out in real estate back in like 2004. I got my real estate license, bought several rental properties, attempted some flips that didn't pan out. I never did a tax lien sale but I know how they work. Basically you are paying for people's unpaid taxes. Each state this is handled different and each state pays a different interest rate on your investment. In most cases you don't get the house back with tax lien sales. You'll get your initial investment back plus whatever interest. If you think about it most of these houses also have mortgages that are in foreclosure. The banks aren't going to lose their investment for a couple thousand dollars in unpaid taxes. So they will bring the taxes current before losing the property. So trying to build a flipping business around tax liens would be hard in my opinion.

    There are many ways to flip houses. The flipping or selling part is the exit strategy, but there are numerous acquisition strategies. A tax lien sale is just another acquisition strategy just like buying banked owned properties, foreclosures, pre-foreclosures, etc. Its then up to you want you want to do with the properties after you acquire them. Do you want to rehab and flip them, rent them, owner finance them, wholesale them..etc.

    Sorry for the long winded post but I know a lot about real estate. Its possible to build up a big real estate business and I know several people who have. The key is to have a consistent marketing plan going on at all times to keep the buying machine going. If you want to talk more about this PM me and I'll be happy to talk more via email, skype, or phone call.

    Patrick
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    • Profile picture of the author sandalwood
      John,

      I'm not sure if I'd go the tax lien route. As a former CA R E broker I specialized in foreclosures. A lot easier, faster and cleaner or at least it was for me and my partner.

      We currently have a client here in the Valley who has mortgages on 235 mobile and manufactured homes. He gets all of his HO ins through us that's how I know. If you want a realistic way to make money in real estate look at this market and become a lender. Like everyone else, these buyers are looking for financing too.

      The beauty is, one of realtor clients tells us, the buyers almost always show up w/between 5 and 10K down on properties selling for (usually) 40 to 50K. If the lender mentioned above had to take back a property he doubles the sales price and starts again.

      I bet you can do the math. He bought it anywhere between 20 and 30K sells it for 50 to 60k and finances the sale. Buyer gets foreclosed. Seller offers it for 100K accepts between 60 and 80k and like the IM people say, wash, rinse, repeat.

      Obviously I gave you only the highlights w/o the fine print. But, as a lender, your options are pretty wide open under the current laws.

      That's all I know cuz I don't want to know no more...
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  • Profile picture of the author Kirahster
    It definitely depends on the state. I dont think it is quite as easy to make that much money in MA because the market has not been as affected here as it has in other states.
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  • Profile picture of the author Mister Natural
    well perhaps not the television method,
    But I know some guys who buy small shabby bank owned houses for approximately $5000, dress them up with basic cosmetic work like painting, broken windows,
    and "obvious necessary" repairs like rehang a door or install a toilet.
    Maybe $3000 or less in repairs for a total of $8000 invested, then sell them for $20,000.
    A clean $20,000 house will sell within 2 weeks netting a profit of $10 to $12K.
    I'm sure they try to get $10,000 out of every house.

    It's more fun when you can "outsource" that rehab work.
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  • Profile picture of the author Michael Bucker
    Its 1 am but call anyway white boy.
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  • Profile picture of the author Luke Bishop
    Theres an ebook out there where this guy clears forclosed houses for banks and has earnt a **** load... I would like to get into this in Australia, wouldn't have a clue where to start though, his ebook only looks relevant within America.
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    • Profile picture of the author sandalwood
      Here is a reputable website devoted to real estate:

      Real Estate Investing, Real Estate Investment Resources That Work!

      That is not an affiliate link nor do I make a dime off anything they sell.

      BTW, go by your local MLS office and see what kind of books and materials they have 4 sale on mobile homes. Your local library - remember that source - probably has a whole row of books devoted to real estate and mobile homes.

      Finally, find a real estate agent licensed to sell mobile homes and see if they are willing to give you a free education. By free, I mean you might have to buy lunch.

      If I remember any more sources, I'll post later.

      P.S. I have Lonnie's book. Fantastic biz plan with solid advice.
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    • Profile picture of the author vndnbrgj
      Originally Posted by Luke Bishop View Post

      Theres an ebook out there where this guy clears forclosed houses for banks and has earnt a **** load... I would like to get into this in Australia, wouldn't have a clue where to start though, his ebook only looks relevant within America.
      You can do this anywhere you want.... I used to do this, in the US, dealing with companies like HUD. You need around $15k to start.
      I can go into more detail if people are interested. Or make an ebook and sell "How to make $2k/day" (True story) for only $7....
      I have never done it directly for realtors, although I have considered it.
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      • Profile picture of the author ry6782010
        I'd thought about doing this once. Me thinks I'll just stick to watching Flip Men on Spike TV . Freakin awesome show.
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        • Profile picture of the author J smith
          It can work, and I am sure it does work for some people who are really experts in this area. However I see two problems with the whole idea of "buy tax liens - make big bucks"

          1) You have to hold a tax lien for quite a while before it pays off (either you getting the house, or you getting paid taxes + interest) Though this wouldn't be a problem for an investor, it would be for some one looking to make some quick money.

          2) The times when you get a house from tax liens are going to be incredibly rare. Getting a house from holding a tax lien means there was no mortgage on the house (or bank would pay off your tax lien when they foreclose)
          And more importantly it means that the home owners were a bunch of morons. Why else would they lose a house that was quickly (and easily?) sold for 48k to a 1.5k tax lien? If they had any brains at all they'd sell it for 48k themselves, pay off the lien and pocket the remaining money.

          So, as far as I can tell (keep in mind I've no experience with actually buying tax liens) it's going to be very, very rare to get a home from holding a tax lien.

          It might still make a nice invsetment opportunity since you are guaranteed to be paid by some one (home owners, bank that holds the mortgage or you get a house and sell it) but I have no idea what kind of interest rate you'd get from a tax lien, and since the tax lien being paid off is the most likely scenario, I am not sure if it would be worth it.
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  • Profile picture of the author Adwizard
    John... man oh man... when you become so popular you have to weed through a bunch of trash to read a simple answer to a simple question. So many people read your posts and want to reply they will talk about nearly anything.

    Anyways to answer your question about tax liens. It does vary from state to state and you can get all the info you need by calling your county assessors office. Her in Missouri each county assessor will put out a list the month prior to the sale. You will at the least get paid interest on your investment. (13% in Missouri if I'm not mistaken). You do have to give the people 1 year to reclaim and your also responsible to give them written notice yourself before taking possession.

    My son invests money in these every year because of the guaranteed interest rate coupled with the slight chance of actually getting a property for only paying the back taxes. A good friend of mine and retired postal worker also does this every year and just took possession of a three bedroom home in Cape Girardeau worth right around $110,000. He got it for initial investment of $2,700. and about $5,000. worth of work to get everything up to where he wanted to move into it. He is moving in so he can save taxes on the profit and selling his home he's in now and paying capital gains tax.

    The sales are legit with very little competition. Much better return than any bank is paying now!

    Hope that helps,
    Ed
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    • Profile picture of the author Adwizard
      Forgot to mention the sales only occur statewide once per year. They are published in July and the sales take place on the county courthouse steps in each county in August all on the same day. I know of a family here who covers four separate counties by Dad, Mom and two older children each at separate counties to invest their money.
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  • Profile picture of the author stevenmoore
    The primary benefit is that it will be much easier to get a mortgage for the house. That said, you will still need to do the legwork needed, and you will still need to secure a boatload of funds.
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  • Profile picture of the author Chris Cho
    John, I was actually thinking of you today. I don't actually do any calling but I have my team who does the coldcalls. But I was thinking today before my jog like "damn, maybe I should hit the phones. I'm so good at meeting people and calling people. That's how I made all my money. Why is it that I don't want to call when it comes to SEO & Web Design?"

    I guess I got a lil lazy and forgot where I came from...

    Anyways, here's a check I made when I was 23-24 years old. I got the property for 30k and flipped it for $127k. I think I worked less than 10 hours on this deal.

    I knocked on doors and called them for this deal. Def worth hitting the street.

    I have my guys knock on doors and call business owners but from this week I plan to go back to my essence and GET THIS ISH POPPIN!

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