Never Get A Job

Trading is a funny business. There is no cap on the amount of money a trader can earn, yet most traders lose more than they are able to afford. Why does this constitute the norm, rather than the exception? Why is it that so many flock to the market looking for riches, and leave in financial and emotional ruin. It’s simple really, the answer is ignorance. A limited comprehension will typically cost you in any business venture… especially trading. At minimum, a trader must have a solid grasp on the two primary elements of ALL markets, and not just the Forex market. These two elements are price action, and money management.

Price is King. Certainly, you have heard this before – we all have. However, what does it really mean? Be honest with yourself for a moment. You probably have 5 indicators up on your charts at any given time of a trading session. Most traders couldn’t even tell the price area of last nights session because they were too busy waiting for their moving averages to cross. This type of approach is killing any hopes you becoming profitable in the markets. Trading is a simple science – no indicators needed. If price is breaking previous highs (regardless of your charts timeframe setting) you buy, and vice versa for the sells. Try it out some time… you’ll be pleasantly surprised at the increase in your hit ratio percentages.

We now arrive at the second most important element of profitable trading – money management. Again, you may have heard this term being thrown around, but find yourself uncertain of its true meaning. Money management actually defines a number of different concepts.

The most important concept of money management deals with protecting capital. If you’re not making capital preservation your primary focus then money management will not be much of an issue for you in the future – you simply won’t have any money left to manage. Long story short – define your max exposure, and close out if max exposure is reached. I’ve seen this before many times over. The greatest pitfall in one’s trading journey is the ability to cut losses. I will make a statement you have heard many times before, but one you have largely ignored if you still find yourself blowing accounts. “You will never be a profitable Forex trader unless you learn how to take a loss”. This is by far the hardest thing to do in any trading (or investing) endeavor.

The second aspect of money management deals with gains (as opposed to losses). As a trader finds himself “in the black” with a growing equity curve, he must ensure that the power of compounding is working in his favor. The quickest way to utilize the power of compounding in your trading is by fractionally increasing you position sizing based on your over all equity. An example of fractionally increasing your position sizing would be trading 1 mini lot on a 10K balance, and switching over to 1.1 mini lots when you reach an 11K balance. I know that sounds simple, yet many do not adhere to this methodology and loosely double and triple their position sizing after a streak of wins. Ultimately, this type of approach will kill your equity curve.

Go to Surefire Forex Trading to learn how successful traders make their money.

When I was first starting out as a trader, I was so busy fishing around for “the latest system” that I totally missed the obvious. Well, perhaps not so obvious in the beginning. Trading psychology is critical in terms of overall trading success. It’s not something one realizes as they work through a demo account, but something that becomes far more obvious as we move into a live (real money) account. “Know thy self” is a famous old adage which truly resonates when I consider this topic. A trader who fails to recognize the pitfalls of his or her mind’s inner workings is surely in for a nasty surprise.

The biggest psychological hurdle in trading is the minds unwillingness to take a loss. Not only is this the most psychologically crippling aspect to your trading, but it’s also the most crippling aspect to your account balance. Accepting losses is extremely difficult because it signifies failure. If you think about it for a moment, you come to the realization that we have all been programmed to view losing as a direct result of “poor performance”. One football team beats the other because they simply are, or played, better. Seems rather logical in the real world, but in the market this way of thinking does not apply. The market is not you against them; it’s you against yourself (or your psychology, for lack of a better term).

The best way to deal with the psychological crutch is to “tune in” to your inner voice – the voice of reason, logic, and intelligence. You may not have noticed this before, but usually poor trading decisions (i.e. not cutting losses, entering trades prematurely) is a by-product of a psychologically programmed reaction. This is why a trader often finds him or herself dumbfounded at their actions after the fact. The truth of the matter is that you were not behind the wheel at those critical moments, so to speak. You were, more or less, on auto pilot. There wasn’t an ounce of cognition in your mind during that last disastrous trade. Simply put, you got over excited due to fear or greed and your subconscious mind stepped in to do the rest. Unfortunately, the subconscious mind is worse at trading than you are. I know it’s hard to imagine, but this is precisely what happens to struggling traders time and time again.

By tuning into your inner voice you are able to constantly participate on a conscious level. You have to literally talk yourself through every process of your trading plan, signal, and order closing. When you do this long enough, an interesting thing happens – one I think you’ll be very excited about. You start to teach your subconscious mind how to trade. Eventually this process leads us to what the pros call “level 5” trading skill. At this stage of the game the subconscious mind does all of the trading for you. You will no longer need to fight your subconscious programming by focusing on inner voice, because your inner voice and your programmed psychological responses will be one and the same.

Go to Surefire Forex Trading to get some really good tips and techniques- everyone should read this.

It seems like every time you get up for a good ‘ole 3 a.m. snack these days and flip on the tv, you’re bombarded with a new real estate “guru” trying to convince you that the next big cash cow is buy properties at tax deed auction- that is, properties the government has seized for non-payment of taxes. John Beck was recently “outed” for having deceived his audience with the pictures of the beautiful properties supposedly purchased at tax deed auction for $1000- or less. As they say, if it looks too good to be true, it probably is. Here is why tax deed auctions SEEM like the place to get a great deal- but actually are a huge waste of time.

First off, what you see isn’t always what you get. Each state is different, but in many states, you don’t get to inspect any of these properties until AFTER you’ve bought them. There’s no way to know the proper condition, and thus no way to really know how much you should invest in them. Furthermore, oftentimes you don’t get immediate possession of the property once you’ve got the deed- and in some states, you have to buy a lien against the property, wait for the time for the owner to pay off the lien to run out, and THEN apply for a deed. In this waiting period, any number of things can happen to the property. Even if you were reasonably sure when you bid that it was a nice property you were trying to buy, by the time you get it, it may be in considerably worse condition than when you first bid on it. Not to mention, if you’ve been around for the last several years, you’ve seen what can happen to property values in the midst of an economic downturn. Yikes!

Even if that weren’t the case, your odds of actually getting a property or a lien at one of these auctions is very small. With all the publicity tax sale investing has gotten in recent years, sales/auctions are filled to the brim with other bidders like yourself. By the time the bidding is over, most decent properties have been bid up close to retail value. You’ll be bidding against big companies that spend all their time researching these properties, and who can afford to make less money on their investment, just because they have so much of it. Unless you’ve got tons of cash, chances are you can’t compete.

I know this will surprise you in light of the above statements, but… I still think tax sale property holds the best opportunities to get great bargain properties you can make a lot of money on. JUST NOT AT TAX SALE. It’s a system called “deedgrabbing“, involving little-known loopholes to get properties before the auctions, without bidding, without almost ANY competition (it’s a pretty well-kept secret), and yes, for VERY little money.

Go to deedgrabber.info for a free mini course on deedgrabbing!

If you’ve been lured in by infomercials like the one by John Beck, promising that you can buy government-seized tax sale properties for almost nothing, you need to read this article. It’s not as simple as these television real estate gurus make it out to be, and if you’re not careful, you could end up in over your head, the owner of a piece of property you really don’t want. But more often than not, you’ll just end up wasting time and money on programs like the one John Beck sells, and then find yourself at tax sale auction unable to buy anything even CLOSE to what you saw on tv.

Why?

Well, for starters, these infomercials are trying to sell you on their product. The homes they show “free and clear” looking like a celebrity could live in them are often “after” pictures– what they don’t show you is the hideous state of disrepair the properties were in when they were bought for so little, or the thousands, tens of thousands, even HUNDREDS of thousands of dollars that had to go in to rehabilitating them to the point that they looked good enough for tv.

But even if they had shown you the actual state of the property at the time of purchase, what they don’t tell you is that at government auction, there is little to no chance you will be able to buy one of these properties. Why? Because there are companies with millions of dollars of operating capital and full staffs that spend all their time researching the upcoming tax auctions. These seasoned bidders will be standing right alongside you, and they can afford to make a smaller return on their investment simply because they have so much money– you’ll likely be outbid every single time. Plus, you’ll find that after you stop bidding, others will continue to bid, until the property has almost reached market value.

I’m sorry to be the one to tell you.

So there’s no quick and easy way to getting great properties at tax sale. HOWEVER… this doesn’t mean than tax delinquent property isn’t your cash cow, my friend. Quite the contrary, you just have to be a little smarter about it than your competition. You can still collect on those great amounts of equity in tax sale properties, but you’ve got to get to them before the government sells them at auction. You must locate the owners and approach them at a strategic time in the process, and help them see that it will benefit them to sell to you instead of losing everything at the auction (which is true). It’s called “deed grabbing,” and I’ll tell you what to say to these owners, when to approach them, how to find them and what to do once you’ve got a property (yessss!).

Go to deedgrabber.info for a free mini course on deedgrabbing.

Real estate guru John Beck says that if you send him just a little bit of cash for his course, he can teach you how to buy GREAT properties for just a few hundred dollars- usually with no monthly payments, by buying properties that owe taxes to the government, have been seized, and are auctioned off at government tax sale. If you’re a sane, thinking person, this should cause your “bogus detector” to start wailing like a newborn baby.

I hate to be the one to break it to you, but this is one of the tried and true cases of “if it seems to good to be true, it probably is.” Inside Edition exposed John Beck’s infomercial as being an almost complete fraud, locating the purchasers of these “beautiful properties”, who- unfortunately for John Beck- had hundreds of photos of the rehabbing process of the properties, which, although purchased for very little, were falling apart and needed tens of thousands of dollars of repairs at the time of purchase. John Beck shows you the “after” photos, while claiming these tax sale properties were bought for mere hundreds of dollars.

If I were you, I wouldn’t purchase ANYTHING from someone who feels the need to be deceptive about the product he’s selling. However, I can understand why he feels that need- investing in tax liens and deeds isn’t AT ALL what it’s cracked up to be. There aren’t actually beautiful properties for sale like the ones on his infomercial- at least, not for any amount of money you’d make a profit on. The tax sale process is generally an auction– so everyone and his brother is there bidding against you. No money to be made at tax sale…

…but tax delinquent property is probably the best source of untapped real estate wealth out there today. It’s just too bad for John Beck that he wasted his time coming up with false and misleading infomercials, instead of finding an HONEST way to teach people to invest in tax foreclosures. I’ve been doing it for years- it’s called “deed grabbing.”

Deed grabbing is a way of obtaining tax properties BEFORE the auction, and without bidding. In fact, it’s such a well-kept secret (though, once you understand it, it’s so simple you can’t believe YOU didn’t think of it) that there is next to no competition. Sound good? It is. It’s a strategy that involves approaching owners at a precise time in the process, knowing exactly what to say to them to make them understand that selling to you is their best bet, and then ACTUALLY getting properties for insanely low amounts- and sometimes even FREE. Yes. Free. If you waste your time on John Beck’s course, or at the tax sale at all, you’re insane! Go to deedgrabber.info for a free mini course on deedgrabbing.

Let me guess: you’ve probably never even heard of deedgrabbing before, and stumbled on this article by googling the term to try to find out what it was, or by following another link here from a real estate investing site. If it was the latter, it was probably a tax lien or tax deed investing site- trying to persuade you that investing in tax sale properties is the best way to make money in real estate. That is certainly the case– just not the way other people are telling you to do it. Before I tell you how I made big money my first time out deedgrabbing (of course, at the time there was no term for it– Rick Dawson has since coined the term), let me tell you why tax lien and tax deed investing is NOT the best way (or in many cases, even a good way) to make money from tax sale properties.

First of all, my friend, you’re a little late. There are already multi-million dollar corporations that buy up millions of dollars worth of liens at your local county tax sale. They have professionals on staff analyzing financial data to figure out which properties are actually worth their time and money to invest in. Thus, they’re going to be going after the very same properties as you are 99% of the time. Since they have tons of money to work with, their maximum bid is going to trump yours, every time. All you’re going to get out of attending the government tax sale is a headache, and a pain in your you-know-where from your wife or husband kicking you in the rear.

That should be reason enough to deter you from attempting to invest at the tax sale. If it wasn’t, here’s another reason: what you see isn’t necessarily what you get. You oftentimes can’t inspect the property you’re bidding on. In the case of tax liens, since it takes years many times to acquire the property’s deed (the owners have a nice long period to pay you off, and do 95% of the time), in that time the property can deteriorate quite horrendously. If you’re in it for the interest and don’t mind holding a pricy lien on a property (since everyone was bidding against you, and bid it up so high), then great- IF you get paid off. Find yourself in that unlucky 5% and you may have a property on your hands that you paid dearly for that may have a giant hole in its roof- or no roof at all.

If you haven’t guessed it by now, you needs loooooots and lots and lots of cash to go this route.

It’s really not necessary to go to all this trouble. There’s a much better way to get this very same property, BEFORE the sale (or time to pay off the lien is up), directly from the owners, and at a tiny, tiny percentage of the cost. It involves contacting the owners at a strategic time, knowing the right things to say to make them see that selling to you for pennies on the dollar is their best option, and then selling the property immediately BEFORE you even have to pay the taxes off.

That’s how I made $7375.75 off my first property- did I mention it was on my first try, and in a matter of 4 days? It’s not $7 million, but I don’t think anyone reading would be unhappy with $7,000 for 4 days of work. Go to deedgrabber.info for a free mini course on deedgrabbing.

Jack Bosch’s Land Profit Formula system has been all over the internet lately. I actually heard he did a $2M launch for a training course earlier this year. I have to laugh to myself when I see all the hype about the “Land Profit Formula” because Jack Bosch is a smart guy, a shrewd businessman, and most importantly, a brilliant marketer- because what he all he really does is “grab deeds.” It’s not magic, and it’s not really a big secret (although very few people know about it), and I’ve been doing it for years. You can do it too.

I’m not going to give away all the secrets in this article (you’ll have to visit my website for that), but I will tell you this: investing in tax delinquent properties is key if you want to make a killing in real estate. When you hear about tax sale properties, though, most people think of investing in tax liens and deeds at the government auction. I’ll give you the top reasons why that is faulty, and why you should leave government tax auctions to the newbies and the big tax investment companies.

First of all, there is too much competition. With the popularity of real estate investing infomercials in recent years, everyone is trying on their hat as a “real estate investor.” It’s understandable, since real estate investing is the best way to build a secure financial future for yourself and your family. But it also means that good deals are no longer to be had buying at these government auctions. Most properties will be bid up to close to what you’d pay on the open market, so you’re not going to score big on equity there.

Second of all, it’s too risky. If you’re looking to acquire property and are bidding on liens, they almost always get paid off. And if you’re just looking for a good interest rate on your lien, you take the risk that the lien WON’T be paid off, and you’ll end up with an unwanted property (that may have deteriorated considerabley while you held the lien) that you paid almost retail value for! It’s a lose-lose proposition all the way around.

Most investments involve risk, and I might recommend taking the above risks if there weren’t simply a much easier, much more profitable way that anyone can do. It involves contacting owners at a strategic time in the process when they’re primed to sell for pennies on the dollar. There’s almost no competition with deed grabbing, you’ll make a LOT more money doing it, and there is property after property after property to go after- thousands upon thousands in some counties! My first deed grabbing venture netted me $7,375.75 in a matter of weeks, virtually risk-free. So I’m the first to recommend it.

Go to deedgrabber.info for a free mini course on deedgrabbing.

If you do a Google search for “tax sale properties”, you’ll find yourself staring down a confusing list of returns– some from websites trying to sell you information about when and where tax lien sales and tax deed sales are, some from low-tech government sits with pictures of stinky swampland, trying to sell you undesirable tax sale properties, and maybe even some other articles explaining to you the many hoops– both financial AND legal– that you’re going to have to jump through if you want to have any prayer of making a sound investment. It’s not easy to find any good, solid information to help you make the decision about whether investing in tax sale properties is for you. If you do your homework, you’re likely to find at least as many sources telling you that investing in tax sale properties is a losing proposition, as ones that will tell you it’s a great idea- and the ones telling you it’s great are usually trying to sell you lists.

I hate to do this to you, but if your way of investing in tax sale properties is going to be bidding on liens or deeds at the county auction, I’m with all the naysayers. There are so many pitfalls and risks to this method that in the end, it’s almost never worth it. After all, we invest in real estate to try to make a better life for ourselves- to build toward a secure future, to make more money than might be possible working a 9-5, and to have more personal freedom and time to spend with our families. Right? When you realize the work that often times goes into investing in tax sale properties in this way, at the end of the day, it may be preferable just to work toward the gold watch and the corner office and “work for the weekend.”

Bidding on tax deeds would be great if there wasn’t so much competition. There are lots of properties that end up at the sale that are okay and have some equity. Unfortunately, you’re never going to get a good enough deal to make any money on them, because the guy next to you isn’t about to let that happen. He will bid against you until the property is close to retail value– then you’ve got your nest egg invested in a questionable property (since you usually can’t inspect it first) where if one thing goes wrong, you’ll lose all the money you stood to make and perhaps then some.

Same general thing with the tax lien sale. If you’ve got tons of money, like to gamble, and don’t mind waiting a long time for payoff, you can make some decent money off of the interested generated from buying liens on nice properties. Owners pay off tax liens most of the time. However, you risk running into that rare occasion when you end up owning the property you bought a lien on… which again, would be great if you’d gotten it for a steal, but that competition at the auction is going to bid it up to almost retail value. So you may end up owning a property you never wanted, not getting the interest, gaining too small of an amount of equity to make the headache worth it, and… what if there’s another economic downturn? You could end up upside-down. It’s really not worth it.

It sucks, right? We know that tax sale properties are often free and clear (mortgaged properties would have had their taxes paid off prior to sale by the mortgage companies)… which means tons of equity… gosh, I wish there were a way to get those properties without all the competition, before the sale.

Well, of course there is, you just have to be a little more creative than the next guy. It’s called “deed grabbing,” and it’s a method of obtaining the tax sale properties right from the owners, rather than waiting until they’ve lost everything and you’re wasting away at the tax sale watching great properties get bid through the roof. It’s easy, all it involves is striking while the iron is hot, and finding the right owners who are ready to walk away and hand you their tax sale properties for next to nothing. And best of all, it’s a well-kept secret, so there is minimal competition. And it WORKS.

Go to deedgrabber.info for a free mini course on deedgrabbing.

If you’ve already figured out that foreclosure investing is the right way to make money in today’s market, congratulations- you’re one step ahead of most people investing in real estate. But when most people hear the term “foreclosure,” they immediately think “mortgage foreclosure”- what happens when people don’t pay their mortgages, and their homes are repossessed by the bank that owns their mortgage. But seasoned investors know that if you want to make money dealing with foreclosures, you’ve got to go after property that’s in tax foreclosure- that is, property that’s been seized or had a lien put on it by the government to recoup unpaid back taxes.

Unfortunately for the small investor, it’s hard to compete. In most cases, you need a lot of cash, there’s some SERIOUS competition, and risks galore. It all starts when you show up at the tax sale- and see a line out the door. Regardless of if you’re bidding on liens or the actual deeds (it varies by state), the end result is usually the same: all the good properties get bid up to the point that they’re no longer profitable. If you happen to be bidding on a lien, you’ll almost always get paid off in the years it takes before you can apply for a deed. This is great if you’re just looking to earn interest on your investment, but even then, there are risks. Investing in tax liens for the interest always carries the risk of ending up with a retail value property, when all you wanted was your money back with interest.

There’s gotta be a better way, right?

Let’s think about why it is properties end up at tax sale in the first place. The most obvious reason would be that people are under too much financial strain, and can’t pay their taxes (and usually, their mortgage)… right? WRONG. Properties with mortgages almost never end up at tax sale, because due to their interest in the property, the mortgage company will come in and pay those taxes to avoid losing their claim on the property. So by the time a property ends up at tax sale, it is almost always free at clear- of a mortgage, at least. In states where tax liens are sold, sometimes mortgaged properties get tax liens, but again, they are paid off almost every time. So, occasionally lack of funds is a reason for a property making it all the way to tax sale, but usually, it’s something else.

So what could it be?

I know it’s hard to believe, but in many cases, the owners of these properties simply no longer want them. Perhaps it’s a property they bought with the intention of using later, or renting out, and just never got around to doing it. Or they inherited it, and live halfway across the country and it’s a pain to look after it. Or they are just plain tired of the responsibility of being homeowners. They either don’t care, or are ready to lose their property at tax sale…

…and they are just waiting for YOU to come and “grab their deed“! I’ll show you how to find and contact these owners and get their properties for $1000 or less most of the time… and sometimes, they’ll even give them to you. Yes. GIVE THEM TO YOU! There are no shortage of prospects- there are millions of tax delinquent properties spread through every county in the US! And best of all? The competition is just not there for these properties – they don’t know about them. So YOU can be the first in your area to milk the “tax-delinquent property cow”! Go to deedgrabber.info, where you can find out lots more about deed grabbing.

If you’re considering making the move into property investing, either as a full-time job or just a way to build toward a secure future, there’s a right way, and wrong way to go about it. The fact that you’re reading and doing your research before taking that leap puts you one step ahead of most people.

Since most people know very little about property investing, they often make rookie mistakes. With the popularity of tv shows like “Flip This House” and “Curb Appeal”, people have gotten the idea that there are millions to be made in flipping properties, just by cleaning them up and doing a cosmetic overhaul. While there is some money to be made here, it’s not as easy as it looks to locate the right property in the right area for the right price. It’s a very competitive field, and there are a lot of pitfalls and risks, as well as time investment, that when considering all the possible ways to go about property investing, makes rehabbing and flipping properties just not the best option.

Usually the next place people look is mortgage foreclosures. After all, going after homeowners who are about to lose their properties due to non-payment of their mortgage seems like a gold mine. Unfortunately, this, too, is a very crowded niche. Most homes don’t have a lot of equity, and the headache of dealing with the large mortgages and other liens and debt issues that come along with this property is usually enough to weed out most “weekend” investors.

If you’re still left standing after going that route, the next place most people turn to is investing at tax sale. Most states sell either tax liens on delinquent properties, or the deeds to the properties themselves at auction, to collect the back taxes. This is a great route to go in theory, especially if you’re an investor with a lot of money. But if you’re still small-time, you’ll find that most sales are filled with bidders who will bid against you to the point where it’s no longer profitable for you to buy the properties or liens you had your eye one. So what’s the little guy to do?

Get creative, that’s what. You’ve got to find a way to get more properties, with little competition, without having to lay out a lot of cash for a lot of risk. The secret is, tax delinquent property is STILL the best way to begin property investing- but you’ve got to learn how to get the properties from the owners BEFORE the tax sale. It’s a method known as “deedgrabbing” and it’s still a well-enough-kept secret that there’s lots of profits to be made- and in current economic times, there are more tax delinquent properties than ever.

Go to deedgrabber.info for a free mini-course on deedgrabbing!

I’ve been a real estate investor for over 10 years and tax sales have really been a great investing area for me. So I wasn’t surprised when I saw that John Beck has been running an informercial now for some time showing others how to make money just like I have purchasing tax sale properties. The most exciting thing about the informercial featuring John Beck is the display of properties he shows which his students have purchased for less than $1000, free and clear.

I’m sure if you’re reading this page now, you’re considering buying John’s course, or at the very least, curious about how tax sales work. But maybe you saw the “Inside Edition” in April 2009 exposing John Beck for fabricating some or all of his examples on tv.

I can’t confirm for sure if the Inside Edition episode is accurate or not, but I can tell you for sure that tax sales can produce the best bargains out there in real estate investing. But before you jump on the John Beck website or call his 800 number to order his program, why not learn a little about tax sales and decide what you want to accomplish with tax sales.

The first thing you need to know about investing at your chosen tax sale is whether the government is offering a tax deed or a tax lien when you buy at the auction.

If they are offering a tax deed, a list will come out showing all properties subject to tax deed sale, and if the owner does not pay the taxes by the tax deed sale date, you can bid on the property against others at the sale. If some states, you are the successful bidder, you will own the property free and clear (in others, there are some hoops to jump through first).

Can you guess what the problem is with trying to get a bargain property at a tax deed sale? You will be bidding against many other bidders at the sale, and it would be a rare event indeed to get a property worth $50,000 for $500 when there are other bidders in the room bidding against you.

If the government is offering a tax lien, you will be buying only a lien against the property, not the property itself. You will have to give the owner a certain period of time, which varies from state to state, to pay the lien off. If the owner does not pay the lien off in this time period, you may then be eligible to apply for a tax deed to the property. In some states the owner can pay the lien off right until you get your tax deed.

Now, you will have a much better chance buying a bargain tax lien that can lead to an eventual property deed. The problem is, if you’ve purchased a lien against a $50,000 property for $286, most of the time, the owner will show up to redeem (pay the taxes on) the property!

What other obstacles will you face? Well, my county recently put out a list of 10,000 properties to be offered at their tax lien auction, and only about 1,200 sold. That tells you that the other 9,000+ properties were not even worth the amount of taxes owed on them!

You will have to attempt to eliminate worthless properties from the list that comes out, and personally inspect the rest (from the outside only!) Then you’ll have your “short list” of properties you want to bid on, and you’ll have to determine the maximum you’re willing to pay for each.

Once you get to the sale, you will be outbid on many of these, and others will no longer be offered at the sale.

After all this work, maybe you’ve purchased a few cheap tax liens against good property. Now you will usually need to hire a lawyer to do a title report and give notice to each party that has an interest in the property. If the owner doesn’t pay you off, congratulations! You may now apply for a deed to the property.

Just be forewarned, your deed is probably not exactly “free and clear”! The IRS may still have certain rights in the property, and in most areas you will have to do a “quiet title action” in order to be able to sell the property with title insurance. This quiet title action gives all interested parties one more chance to challenge your tax deed. These parties can and do come forward and reverse tax sale deeds all the time.

Who is the tax sale right for, then?

If you’re like most aspiring tax sale investors, you want cheap property, and you want it now! Unfortunately, it’s almost impossible to get cheap property now through a tax deed sale, and you have a long education and wait ahead of you if you want to acquire properties through tax liens.

The fact is though, if you have a large amount of money to invest, and want to do so safely, tax liens are a great investment. This will be proven to you when you attend your first major tax lien sale. Institutions often attend the sale and purchase millions of dollars in liens at a time. Most states provide for a 10-20%+ return on your money if you invest in tax liens.

However, if you are limited in funds, or really just want properties instead of a decent annual return on your money, you need to try deedgrabbing. It’s a way to get tax property before the auction, without bidding against other bidders, oftentimes free and clear, and… ready for this?… for under $1000 most of the time, and sometimes for free. Yes… free!

Go to deedgrabber.info for a free course on deedgrabbing.

If this is the first time you’ve heard the term “deedgrabber” or “deed grabbing”, you’re not alone. However, you can bet dollars to donuts that within the next few years, it’ll become a household phrase– at least in the houses of real estate investors. It’s not a new method for obtaining property, but it has been a fairly closely guarded one until now. With the recent economic downturn, opportunities for “deed grabbing” have absolutely shot through the roof, and so deedgrabbers have been loosening their lips a bit about their formula for making a killing in the real estate industry.

And the funny thing? It’s SO SIMPLE, anyone who understands how could do it, and yet it never even occurs to most people who are trying to become tax sale investors.

So… what’s a “deedgrabber”?

To understand deedgrabbing, you first have to understand how and why people invest in tax sale property. Basically, here is how it works. Someone who owns a property neglects to pay their property taxes. This makes them “tax delinquent.” After a certain period of time, the government will take an action to recover the overdue taxes. In some states, the government will sell a lien at tax sale auction to the highest bidder. Then, a period of time will pass in which the owner can “redeem” the property- pay off the taxes- and if he/she doesn’t, then the buyer of the lien can apply for ownership of the property (in most states). If the owner does “redeem”, then the lien holder will get interest on the money he invested in the tax lien.

In other states, the government auctions off the actual deed to the property at tax sale. Thus, if you are the winning bidder, you usually get ownership to the property immediately.

Sounds great, right? Here’s the catch.

Since everyone and his brother is getting involved in the tax sale business, now the auctions are filled to the brim with people who are also trying to get those great properties for cheap. What ends up happening is that the lien or deed is bid up so high that it’s almost at retail value before the bidding stops. While this can be okay for tax lien bidders who just want to make some interest on their cash and hope that the owner will pay off, it can also be very bad for that same person if the owner DOESN’T pay off- then he’s got a property he paid close to retail value for that he owns, instead of making interest money off the investment and moving on to the next property. Not good.

And it’s especially bad for people who really want to acquire property to sell or rent. It’s almost impossible nowadays to get a good deal on a deed at tax sale- just too many bidders.

Savvy investors who encountered this problem came up with a solution- “deedgrabbing.” They directly contact the owners of the tax delinquent properties just as that period to redeem the lien is about to end- or in the case of tax deed states (most states either sell liens or deeds), just before the tax deed auction is about to take place. This little window of time is a gold mine- you’ll find highly motivated sellers, free and clear properties (mortgage companies pay off delinquent taxes on properties with mortgages long before the sale), and opportunities out the wazoo. (That’s an industy term.)

Go to deedgrabber.info for a free email course on deedgrabbing.

I’ve got news for ya, and I’m sorry to say that it’s not good news. If you’re just now looking into investing in tax delinquent property at tax sales, you may be too late to make any real money. If you don’t believe me, go ahead- attend an auction. You’ll be lucky if you can squeeze into the auditorium where the auction is being held. So many people have seen the infomercials or heard the radio ads about tax sales investing that now this “niche” is overcrowded.

It used to be that you could go to the tax sales auction and perhaps walk away with a deed to a great property for much less than it was worth, or bid on a lien that, if it didn’t yield you a property before the owner showed up to redeem, would at least earn you a nice return on your investment (up to 18%, in some states). But now, the auctions are crowded with eager investors who are all bidding on the same properties. The end result? All the desireable properties are bid up close to their retail value, so it’s extremely difficult to make any money off these properties.

You can still make some money off of tax liens, if all you’re looking for is a nice return on your investment like I mentioned before. Bid on a lien on a nice property in a nice area, and you’ll likely end up getting paid off by the owner, including the nice interest rate that’s been applied while you owned the lien. However, there is a pitfall here- since to buy the lien you had to compete with other bidders and bid the price up close to retail value, if that owner doesn’t show up, you’re stuck with the retail-value property, whether you wanted it or not. And if you’re looking to acquire property to rent or sell? Tax liens are not the way to go, since they get paid off 95% of the time- and you often have to hold a lien for years on the ones that don’t, before you can apply for ownership.

There is a much easier way to go about obtaining cheap tax delinquent property, without attending tax sales. Not too many people have figured it out, either, which makes this a great time to get in. It’s called “deedgrabbing,” and what it basically amounts to is getting to the owners of the properties just when they are about to go to tax sale, or at the end of the lien redemption period- this is when they are about to lose all their equity, which makes them highly motivated to sell to you to at least recover something from the property. The success rate is through the roof with this method. In almost all cases, the properties about to be lost don’t have a mortgage, because the mortgage company would have paid off the taxes to keep from losing the property to the government- and often, by the time the tax sale rolls around, the owners are so sick of dealing with the issue that they just want to be done with the situation.

That’s where you come in! Go to deedgrabber.info for a free mini-course on deedgrabbing.

By Olliver Kennedy

So, you’ve probably run across Rick Dawson’s Deed Grabber website, but before you investigate further, want to make sure you’re not being taken for a ride. After all, there’s been a rash of infomercials and websites recently telling you how you can make huge amounts of cash investing in tax liens and deeds at the tax sale the county holds for tax delinquent property once or twice a year. You’ve got John Beck’s “free and clear” program, recently revealed as a scam on Inside Edition; we’ve got the ever famous Carleton Sheets program about the mortgage foreclosure business (too competitive for me); you may even have run across John Bosch and his “Land Profit Formula” and others who have recently popped up offering systems that sound way too good to be true. I can’t say one way or another if those systems are scams- don’t know enough about those guys or their systems. But I can vouch for Rick Dawson, and his Deed Grabber system.

I first read “Go Ahead, Be A Deedgrabber” a few years ago, and had some more advanced questions that Rick’s book didn’t cover. I figured he’d be hard to reach, but I decided what the hey, and fired off an email with my questions anyway. I couldn’t believe how quickly he got back to me, and the depth of the answers to my questions (he has since added a section to the end of his book that covers those questions, also). We ended up emailing back and forth a bunch of times, and he’s been an invaluable resource for me (as I seem to constantly be two steps behind whatever new things he’s on to!). I’ve also taken several of his online courses. In the real estate business, there’s just no substitute for learning this stuff from the guys who have actually made a killing doing it.

You’ve probably already been to the website, but if not, here’s a brief synopsis of what being a “deed grabber” means. Basically, it’s a technique for getting tax-delinquent properties without attending the auctions and bidding against other public bidders, by contacting the owners of the property just before they’re about to lose the property. This is a unique subset of people highly motivated to sell, and for very little. Currently few people know about this technique, so it’s a great one to get into now, while it’s hot. It’s not a “Get Rich Quick” scheme, but it is a “Get Rich Without Working a 9-5″ system that will work for you if you’re willing to follow Rick’s system.

Go to deedgrabber.info for a free deedgrabbing mini-course.

If you’ve been paying attention, you’ve come to the quite correct conclusion that investing in real estate is one of the best things you can do to build a secure future. You’ve probably done a lot of research into the topic, and perhaps you’ve run across the term “deedgrabber” or “deedgrabbing.” I’m guessing if you have, it’s only been once or twice. Deed grabbing isn’t a very widely known real estate investing system. And since there are so few deed grabbers out there, that makes it a great one.

Watching newbies invest in real estate is always an amusing thing for me. I say that in the fondest way possible, of course. They usually start with rehabbing or flipping a property, move on to trying to buy properties in mortgage foreclosue, and after that delve into a very competitive niche- taxlien investing, or purchasing tax liens against tax delinquent property at tax sale. Or in some states where they don’t offer tax liens, you can actually bid on the deed to the propery, and in many cases, take ownership immediately.

That last part sounds great- unfortunately, making any big money this way is becoming a very rare thing. If you’re looking to acquire property, tax liens are not the way to go. You have to hold liens for years, sometimes, before the point where you can apply for ownership, and more often than not, your lien will get paid off long before you get to that point. In the right states, you can make some nice interest on your money in those cases, but that’s about it. The competition is so fierce that by the time everyone’s done bidding, most properties are bid up near retail value anyway- so there’s not much money to be made there.

Buying tax deeds at tax sale poses a similar problem- all the ones you’d want to buy are being bid up by other people just like you who want to buy cheap property. The end result? Deeds for near retail value. The investment of time and cash is just too much for the small amounts of money to be made here.

Deed grabbers take the back road to making BIG money off of tax delinquent property- you’ll never find them at tax deed sales or tax lien auctions. You’ll find them searching for who the owners of these tax sale properties are, and making every effort to contact them as the sale approaches. Oftentimes, these are absentee owners who aren’t even aware their property is about to be lost. And many times, they are owners who have simply gotten tired of being property owners and are about to let the property go rather than bail it out. Either way, the end result is the same: deedgrabbers are finding owners that are highly motivated to sell, and at an extremely cheap price. Best of all? Properties this close to the tax sale or tax lien redemption deadline are almost always free and clear. Yep, you read that right. The equity in these places is through the roof, and the owners are dying to sell. That’s the deedgrabber formula for profits.

Go to deedgrabber.info for a free course on deedgrabbing!

Maybe you’ve seen Jack Bosch’s “Land Profit Formula” advertisements and are wondering if, like everything else that claims to show you how to get property for pennies on the dollar (Carleton Sheets and John Beck come to mind), it’s too good to be true. You’re probably dying to escape the 9-5 and start doing something exciting where you can make the real bucks, but keep running into systems that promise results and don’t deliver. So. Is John Bosch a scammer?

I can’t vouch for Jack Bosch himself- never met the guy, and I haven’t bought his system. However, I’m extremely familiar with what the Land Profit Formula teaches. It’s called “deedgrabbing,” and I’ve been doing it for years.

This concept is no secret, although very few people ever stumble upon it. Most people start out watching “Flip This House” on HGTV, get the bright idea that they’d like to flip a house (been there? don’t worry, it’s how I got started too!), seen that it’s not quite as much fun without the camera crew and budget provided for you, and move on to some other venture. Those like us who’ve gotten hooked on real estate move on to mortgage foreclosures- yikes- what a competitive mess that is. (WAS, for me.)

If that’s not enough to scare you into getting a nice gig with a corner office, you’ll probably find your way into the tax lien/deed investing niche eventually. But at that point, you’re competing with other serious investors like yourself, banging your head against the wall trying to score a good deal. If you’ve already done this, you know what I mean. If not, let me save you the trouble: while tax lien investing is a great route for some people, it’s a terrible route for most of us, especially if what we want is to get very cheap properties, free and clear, TODAY.

I stumbled on deedgrabbing quite by accident, just pondering how I could find a way to get at this property without having to go to the auctions. My gut told me there had to be a way, but it took my brain a little while to catch up. Then it hit me: why not contact the people who are about to lose these properties directly? Maybe instead of just losing their properties to tax sale they’d like to sell to me first, and at least get a little cash out of the deal!

What I found was that owners were eager… I’d even go so far as to say OVERJOYED in some cases, to sell their properties to me! Some didn’t even know the property was about to be lost, and were grateful I’d let them know (and often agreeable to whatever I offered to do to solve the problem- namely- buy it for cheap). And the kicker here is… many of them did know about the sale, and were planning to just let the property go and be glad to be done with it. These are my gold mine today- I get properties for $1000, $100 (yes, you read that right) and… ready for this? Free. FREE. I almost fell over the first time it happened, but it’s true. And you’ll see- it’ll happen to you too. It’s not an everyday occurence, but the first time it happens to you, you’ll smile to yourself and know that you’ve made it as a “deedgrabber.”

Go to deedgrabber.info for a free course on deedgrabbing!

So… you’re interested in investing in taxliens or deeds at tax sale. You’re one step ahead of the pack. I’m referring to the beginners chasing after mortgage foreclosures. Perhaps you’ve been there yourself recently, and are just now breaking into investing in tax delinquent property after getting sick to death of all the pitfalls you encountered dealing with mortgage foreclosures.

Taxlien investing is a good strategy if you’re looking for a good interest rate on your invested funds. In some states you can collect interest as high as 18% when the owners of the property for which you hold a lien pay you off- and if you buy the right property, they do usually pay you off (I’ve read statistics that say 95% of all tax liens get paid off before the property is lost to the lienholder). The best way to gamble here if you don’t want to end up with a deed to the property is to bid only on very nice properties. These owners will usually find a way to avoid losing their homes.

Unfortunately for you, you’re up against some heavy competition at the tax lien auction. There are mega tax lien investment companies with representatives bidding on all the best stuff, and good properties usually end up being bid up close to retail value- and sometimes higher. Who cares, if all you’re looking for is the interest? Well, in the event the owner doesn’t pay you off, you’ll end up with a deed to a property you don’t want. Another drawback is that you sometimes have to hold these liens for YEARS before you see a dime.

Investing in tax deeds poses similar problems- namely, that the intense competition at the sales usually results in any property you’d have a desire to buy being bid up so high that you can’t make any money off of it. And frequently, there is a period of time where the owner can STILL pay off the taxes- so you might end up jumping for joy over a rare great deal, and then find the property redeemed even after you bought the deed.

So, what’s the solution?

I got lucky. After no luck at the tax sales, I was bummed out and trying to think of another way I could make some money off these properties. I really wanted to be a real estate investor. My mind was wandering, and I started thinking about the owners losing the properties, and what a bum rap that was. Suddenly the thought struck me: what if I found out who these people were, and gave them a call when it was getting close to the time they’d lose their property, and all their equity with it, and see if maybe we could work out a deal to save them from losing everything?

It took ONE phone call to ONE owner, and that was it for me- I knew I’d found a gold mine. And it had so many side benefits- first and best, NO ONE ELSE WAS DOING IT!! I also had the warm fuzzies every night when I went to bed because sometimes, when I contacted owners, for a variety of reasons, (like the county didn’t have the right contact information for them) they hadn’t received notice their property was going to tax sale, and I saved their butts! But the majority of the time, I encountered owners who were ready to walk away from their tax problems, and were overjoyed to see the property going to a hardworking young guy like me instead of to the tax lien holder. (Who may well have been another hardworking young guy, but seemed like a monster to the owner!) Since almost all of these properties had no mortgages (or else the mortgage company would have bailed it out to stop from losing it to the government), I was getting deeds to properties for as little as $10 (no joke) with equity in the tens of thousands of dollars- all because these owners no longer wanted to deal with the property.

This, my friends, is known as “deed grabbing.” Go to deedgrabber.info for a free course on deedgrabbing!

You’re probably neck-deep in info about the tax sale/tax lien/tax deed investing process, and wondering if you can really make a legitimate side income or even full-time income out of tax sale investing. You’ve run across John Lane’s website offering lists of tax sale dates across the U.S. and are wondering, “could it really be this simple?” Or maybe you’re nervous you might get scammed. Let me put your mind at ease by addressing a couple of burning questions you may have.

Q: Is it really possible to make money investing in tax liens and tax deeds? A: Yes. It’s really quite simple. If you’re looking to make a good return on your investment in the form of interest, invest in tax liens on nice properties. You’ll rarely end up with the deed, as most owners in affluent areas will end up paying off the taxes- complete with your hefty interest. If you’re looking to acquire property for cheap to build up your real estate empire (or just to flip a property or two), bid on properties at the tax deed sale. Depending on what state you’re in, if you are the winner bidder for the tax deed, you’ll usually take possession immediately.

Q: Will John Lane’s website help me out? Is it a scam? A: John Lane’s website will most definitely help you out if you decide to invest at the deed/lien sales. His lists are reasonably priced and will save you a lot of legwork doing research on the sales. I’ve used them personally, and I can’t say enough good things about John Lane and his tax sale lists site, and if you decide buying/bidding at tax sale is best for you, I recommend no one higher.

However…

Quite by accident I stumbled on a better way to invest in tax sale property. The drawback of going to these sales is that you have so much competition that it’s hard to get any really stellar deals. Properties, especially desireable ones, are often bid up to near retail value, which poses two problems: one, if you are trying to acquire property, deals where you make a lot of money will be few and far between, and two, if you are trying to bid on liens, and you encounter the occasion where an owner doesn’t pay you off and you end up with a DEED to the property when you were just looking for interest, you may end up with a property you paid almost retail value for that you don’t really want.

I’ve got a better way… I call it “deedgrabbing.” Basically, we contact owners of tax delinquent properties just before the property is about to be lost- for tax deeds, just before the sale, and for tax liens, just before the property is about to be lost to the lienholder. Most properties are free and clear at this point, since mortgage companies have bailed out the properties that had mortgages. And, most owners are not only dying to sell their properties for pennies on the dollar to avoid losing everything at the sale or to the lienholder- they are overjoyed to hear from us. And best of all- this method is still a well-kept secret- and very few people are doing it. There are so many owners to contact, you couldn’t exhaust your list in most areas if you tried!
Go to deedgrabber.info for a free course on deedgrabbing!

If you’re looking to make money from delinquent tax properties, there are several ways to do it. First, get clear on why you want to get involved with tax delinquent properties in the first place. There are two basic ways to make money by attending tax sales: interest on tax liens that you can purchase, whose owners end up paying you off, or by acquiring the properties directly at rock-bottom prices.

If you’re interested in earning an above market interest rate on your money, consider going with tax liens. Half or so of the states in the US sell tax liens to recoup back taxes on delinquent properties. After you buy a lien, the owner of the property (and other parties with an interest) will have a certain period of time, called the redemption period, to pay of the lien with interest and reimbursement for your legal fees.

If you don’t really want to end up with property and are just looking for the interest, buy liens on nice properties in good areas. Most of the time, the lien will be bid up close to retail value, but usually you do end up getting the stated interest rate on the entire amount of your investment. By investing in nicer properties, you’re almost guaranteed to earn your interest. Over 95% of properties in the best condition and highest value end up being redeemed. If you are going to invest this way, just make sure you don’t overpay for the lien in the rare event the lien doesn’t get redeemed. In that case, you would apply for a deed after the redemption period and become the owner of the property for what you paid for the lien.

If you’re looking to acquire property, you may attend a tax deed sale, where deed/immediate ownership of the properties are offered. Here you will be bidding against many other people and the price often reaches near market value. You may have to bid on low-end properties just to have a chance at getting one. Also, you’ll probably need to hire an attorney to wade through all the legal work that goes along with acquiring property this way (same with a lien, as well).

Does this mean it’s hard to get tax delinquent property for cheap? Not at all. If you’re looking to acquire property easily and/or make lump sums of cash fast, the way to do that is to buy tax delinquent properties from the owners, without going to the auctions/sales, before they are lost to the lien holder or sold at deed sale at the end of the redemption period… a process I fondly refer to as “deedgrabbing.” Now, you won’t need to wait to get your property, and forget all the research needed to buy tax liens or tax deeds. Just see who is about to lose their property to tax sale, and contact them a month or less before! Most of the delinquent tax properties that have made it that close to the sale/auction are free and clear, because mortgage companies will pay off taxes for homes with mortgages rather than lose their interest in the property. And at this point, often the owners simply don’t want the properties anymore, or can’t afford the upkeep and responsibility. You can easily buy these properties, and immediately resell for huge profits- or keep them as rentals, and start to build your real estate empire!

We give away all our basic secrets for “deedgrabbing,” on www.deedgrabber.info. You can receive it all free, straight to your inbox. Take the time to read the material- you’ll be glad you did!

So… you’ve figured out that investing in real estate is one of the best ways to make a great return on your money and build toward a secure future. You’ve gotten your feet wet, maybe flipped a property or two, or gotten a few rental properties. And, unfortunately, you’ve probably learned the hard way that Carleton Sheets and all the big real estate “gurus” were exaggerating a little when they painted the picture of collecting hundreds of thousands of dollars like it was passing “GO” on a monopoly board.

So now what? Where’s the big money?

I’ll tell you where it’s NOT: investing in tax liens at the big tax sale auction your county holds every year. I can’t figure out why so many people clamor to bid on the properties that have been lost due to unpaid taxes: shouting up the price, bidder after bidder, to close to retail value. What are they thinking? Don’t they understand that they have to hold those liens for sometimes YEARS before they’ll get a chance to see any money from it? Don’t they know that most of those liens end up paid off before that period of time is up?

I just don’t get it.

While everyone and his brother is rushing off to the tax sale, I’ve been sitting quietly on the sidelines, making a few phone calls, sending out a few letters, and snatching all their deeds right out from under them– just before the waiting period is up. Understandably, it makes them very frustrated; they’ve started calling me “Deedgrabber” under their breath, as though it were an insult. But I wear it as a badge of honor.

Why?

Because I was smart enough to come up with a system that that beats theirs, hands-down, every time. I had to; I looked all over the internet for e-books on other ways to make money in real estate, and didn’t find anything that wasn’t bogus. And after attending only one tax sale, I realized it was not a battle I wanted to fight. However… real estate was a war I wanted to win, so I had to come up with a strategy to get ahold of that tax-delinquent property before the tax sale.

I had the bright idea of trying to contact an owner of a tax-delinquent property directly by phone. I was expecting the worst; I’d gotten next to no responses when trying to contact owners in mortgage foreclosure. So imagine my surprise when a friendly woman answered the phone, and started telling me all about the property I was calling about… how she lived across the country and had inherited it when her elderly aunt passed away. After a few minutes of conversation, she came to the point. “I really just want it out of my hair,” she sighed. “I have to tell you, I’ve been so busy, it never even occurred to me to pay the taxes… I didn’t even realize it was going to tax sale.” After that, it was easy. I offered to pay her some money to allow me to take care of the situation and even to overnight all the paperwork to her and have it mailed back to me– so she had to do next to nothing– and that was it. The easiest $30,000 I’ve ever made.

So… if it’s not obvious why this method became very appealing, very quickly to me, here are a couple of reasons. First of all, I knew the taxes on her property were likely the only debts associated with it, since if there had been a mortgage, the property never would have made it so far along the sale process. The mortgage company would have paid it off long ago to make sure it didn’t lose its interest in the property to the government. Second of all, we were only weeks away from the tax sale… at that point, it was either make a deal with me, or lose all the equity in the property to whoever bought her tax lien at the big sale. I knew that would make her eager to sell to me. And lastly? All my competitors were wasting their time at the tax sale… I was the only one approaching it this way!

The side effect I didn’t expect? How friendly and grateful the delinquent owner was. Fast-forward 5 years to the present- I’m still making money hand over fist grabbing deeds. Half the time, the owners don’t even know what’s going on, and I’m the first to let them know! And when I don’t get a deed? It’s usually because I just let someone know they were about to lose a property they do want, and they are so happy I called, they want to hug me. Talk about the warm fuzzies!

Nowadays, especially with the recent economic downturn, there are so many properties with unpaid taxes (THOUSANDS AND THOUSANDS of properties in some counties!) that I couldn’t begin to take advantage of all the deals out there, no matter how badly I wanted to. That’s where you come in! Go to deedgrabber.info for a free course in deedgrabbing.

If you’re hoping to get your start in real estate investing, one of the first places you probably looked was mortgage foreclosures. You probably contacted (or tried to, anyway) owners of properties who were about to lose their homes due to non-payment of their mortgage. If you were lucky enough to get anyone to answer the door or phone, you tried to strike up a deal with them to buy the property and make some money on their equity.

Sound familiar?

This is a really popular technique, and some people have made good money using it, but it’s a very competitive field. If you’ve been running in circles trying to make money this way, I would highly recommend you give a similar, but much more successful concept a try – “deedgrabbing.” Instead of chasing people in mortgage forclosure, you’ll be contacting owners of tax-delinquent property. And even if you are successful in the mortgage foreclosure field, you’ll want to stay tuned for this- it’ll be a great tool to add to your real estate investing arsenal.

The big reason I like working with tax-delinquent pre-foreclosures better than mortgage preforeclosures is that mortgage foreclosure properties all have a mortgage against them! Duh! So to begin with, you’re already dealing with a large debt against the property- and probably unpaid taxes to boot! It’s not easy to figure out from your mortgage list how much you’ll actually need to pay off the mortgage, because there are also attorney’s fees, interest, and other debts that aren’t published. These charges accrue by the day. Don’t learn this one the hard way like I did- my first mortgage foreclosure purchase ended up taking DOUBLE the amount published to pay off!

Also, you might be following dozens of leads that are reported active, but have already reached a settlement agreement. If you do happen to find an owner interested in working with you, they almost always end up not wanting to sell the property and asking you to loan them money or figure out another way for them to stay in the house.

Finally, and most importantly, if you DO get a deal on a mortgage preforeclosure with a lot of equity, somebody (you!) is going to have to come up with all the money to make the payments to stop the foreclosure. Then, while you’re trying to deal with the whole mess, you’re going to have keep making those mortgage payments!

The thing I hated the most about mortgage pre-foreclosure investing? Everyone and their brother is also working them! These poor owners have gotten so many calls from other investors- not to mention all their other creditors- how was I supposed to get my calls answered when they’ve been conditioned by months of calls and out-and-out harassment to avoid answering the phone at all costs? Forget sending letters- they’ve learned to throw those out too.

As they say, “necessity is the mother of invention.” I wanted to work investing in real estate, so I had to find a better way- and boy, did I! I found a real estate investing method that eliminates ALL the problems with mortgage foreclosure investing– investing in tax-delinquent property… ready for this? Without bidding at the auctions with all the other bidders! I’ll get to that in a minute, but first- why tax delinquent property?

First of all, most tax-delinquent properties that make it all the way to the point where they’re scheduled to be auctioned off don’t have a mortgage- because rather than lose their interest in a property to the government, mortgage companies have paid off the taxes on properties with mortgages long ago. So most properties you’ll find are free and clear! If you’ve been investing in mortgage foreclosures, join me in yelling “WHOOPEE!”

Secondly, you will find a much higher percentage of properties at this point have been abandoned- and these are the easiest to quickly buy and re-sell. Owners are DYING to get rid of these!

Another benefit? Very few owners will be trying to get you to be their lender or landlord. Whew!

With tax-delinquent properties, there are firm dates at which “all is said and done.” When the date of the auction or the deadline to pay off the taxes comes, the owner loses their house- period. Do you think they’ll want to lose their equity to the government, or make a deal with you before then?

Last, but best of all…

Almost no one is doing this. And since you save them from losing everything at the last minute… owners are overjoyed to hear from you!<P>

We give away- yes, give away- our secrets about how “grab deeds” on www.deedgrabber.info. You get it all free by email.  Take a minute to read through the material and learn how to be a deed grabber- you’ll be glad you did!