Real
Estate
One Door to Financial Freedom
click a door
Now lets look at REAL ESTATE as one of three
vehicles you can take to financial freedom.
1-REAL
ESTATE: There are basically three strategies
in real estate.
a)-The
Long Term Strategy-Buy and Hold You buy a piece
of property and hope that with time it will appreciate
in value. Real Estate takes advantage of the principle
of leverage. With a small amount of money you can
control a property worth 10 or more the amount of
your investment.
b)-The
Short Term Strategy-the Foreclosures and Flippers
Market . You can find distressed sellers and
buy properties at lower than appraised value and
sell below market value for a quick profit.
c)-Tax
Lien Certificates When people default on their
taxes the government still need that source of revenue
to fulfill their commitment of providing government
services. Each state sells tax lien certificates
to fill this tax shortfall.
The
state collects your money from the tax liens you
buy and when people pay back their back taxes you
get the interest they are charged. If people don't
pay their taxes you may even get their property
for the taxes owed.
Typically
the returns for paying other peoples taxes or tax
liens is anywhere from 16 to 50% as it varies from
State to State. Iowa for example pays 20%.
Next:
Door No. 2 - Investments
