Yesterday I introduced you to long-time colleague Ted Thomas, a 20-year veteran of one of the most unique investments you’ll likely ever stumble across.
In part 2 of this 4-part video course, Ted and I will cover:
What tax lien certificates and tax defaulted property are
How to learn more about tax defaulted property auctions
The “trick” that makes this strategy work in the first place.
Take a look below. It’s well worth a look if you want a safe investment without the risk.
Regards, John Peterson
P.S. Longtime WREIA Members know I don’t recommend anything I don’t fully believe in. This is one of those rare times where the rewards vastly outnumber any risks. It’s definitely worth a close look.
I’ve got something really special for you today – the first of four video lessons I did with long-time colleague Ted Thomas.
If you don’t know Ted, you’re in for a real treat.
For more than 20 years, he’s been the go-to guy in this country for a unique type of investment that is safer than any CD and pays 16%, 18% and, in some cases, 24% (or more) interest per year.
It also doesn’t tie you down to any one place. It doesn’t have any overblown management, broker or government fees either. And, for more than 200 years, it’s been backed by every county government in the United States (in fact, they rely on it).
You can invest through LLC’s or in your own name. You can even roll it into your self-directed IRA if you want.
You’re probably skeptical. I know I was the first time I heard about it.
But if you’re willing to put that aside for 5 minutes and 44 seconds, you’re going to discover something truly remarkable: a consistent, secure and predictable investment opportunity that could provide a very healthy second income or supplement to your retirement.
To reserve your seat at the March WREIA meeting or update your WREIA membership you can find more information at this link.
It is never too late to enjoy a relaxing retirement.
As you can see from this article on MarketWatch, there is still communities and countries for that matter that do not require a kings ransom to retire.
Imagine if you can find one or two solid cash flowing investments. A good residential rental or a note that cash flows.
You can learn how to make that happen with just a small bit of education, time and some hussle.
You do not need tons of cash just knowledge on how to find solid deals.
I’ve seen this trend a few times in the last few years.
Friends buying homes with friends – or Co-Buying homes.
This can be a great way to get into real estate, own instead of rent and start “adulting” like the rest of us.
Co-buying can be a great way to get your foot in the door of ownership – but it’s not without risks.
It can be a great feeling to get out of the apartment scene and into a “real home”. But – you have to think about what happens down the road.
Situations can change. Confirmed life-long bachelors can suddenly get engaged and even married! George Clooney anyone?
For instance -a tenant couple decided it was time to buy a home. They told me they were buying a home in DC. They were great tenants and I was sad to see them move.
It was about a year later that I learned that they had bought a home with a good friend. This couple thought everything was great until their friend decided it was time to get married, move out and start a family of his own. (Not exactly in that order, but that’s another life lesson.)
Yeah – his new fiance wasn’t too keen on living in a basement apartment in DC.
My old tenant, the couple, couldn’t afford to buy out their friend.
Before you think this has a horrible dramatic ending – all is good, and everyone is still friends today.
They all agreed to sell the house – but everyone was disappointed because the net proceeds were far short of anything meaningful. In other words, the principal amount owed on the home was still very high – even though they had paid on their home for over 3 years.
While the home had gone up in value – it was barely enough to cover the commissions and other costs of selling the home. At the end of the day everyone was able to move on but everyone involved was just – disappointed.
My old tenants, now adulting friends, got off lucky in my opinion.
If their grand co-buying experiment had taken place when the market went down, or even sideways – selling the home would not have been an option without some additional financial pain. Maybe even bringing money to the closing table in order to sell the property.
Yes – that can happen. Some people PAY to sell their home, just so they can move on. This was very common in the Great Recession just a few years ago.
In the DC area, we have had a rising market the better part of 10 years now. It’s easy to forget – sometimes the market can go down, or even sideways for a while.
Co-Buying can be a great way to get into a home, or even an investment property – as long as everyone understands the risks, and is willing to ride out the eventual market changes.
As a matter of fact, according to the National Association of Realtors – co-buying is up to 4% of total first time buyer purchases – twice the number just a year ago.
Every once in a while you need to step back and marvel at some of the beautiful homes in our area.
We have some of the most historic homes in the country, and just up the road we may have some of the top modern housing trends cropping up as well.
DC has always been at the cutting edge of home trends, because we have one of the most transient work forces in the country. They usually bring their cutting edge desires with them.
Take for instance – the most expensive home in Maryland right now.
Now, I realize not everyone likes to watch Youtube on their phone, or maybe didn’t have time while you were checking email in line at the store, so below is a short description of what that day might be like as well.
Wholesaling does not need to be complicated. We can break it down into four easy steps.
Identify Property
Control property with contract
Identify buyers
Close and Collect CASH
Now, I realize I have skipped a few steps here but we need to begin with something.
If you are new to real estate and laying out an action plan as a wholesaler, it might look something like this:
You will need to learn how to market and identify property
You will need to understand contracts and how to control real estate
You will need to create a buyer lists so you can market your deals for highest
profit
You will need to build your team so you can close deal efficiently
The good news is that all of this can be learned and implemented.
As you become a full time investor, you will eventually spend a portion of your day or week doing the following:
Planning and Reading One Hour Generally, most people this is done first in morning.
Market Research One to Two Hours Get to know your geographical region. You should know style of housing, rents, prices, neighborhoods, services, schools etc.
Marketing Two Hours You will need to decide how you are going to reach your potential customers. Direct mail, Phone Calls, Knocking on Doors, Social Media, Networking Events
Evaluation One to two hours You will need time to research potential deals and analyze values, renovation ect.
Networking Two Hours You can use coffee appointments, lunch, breakfast meetings to network and build your database
Buyer Lists/Team Building One Hour Your buyer lists can be generated by your networking for the type of investor based on your properties. ( Rehabber, Landlord, Builder) Also, need to begin to find title attorney, accountant, contractors ect
Appointments and Closing Deals As your marketing generates leads setting appointments and securing contracts is your main focus.
I hope you are doing your prep and getting ready for our first Washington REIA meeting of the year.
Planning to be successful this year will depend on your focus and your ability to stay motivated to execute your plan.
Going from one idea to the next will keep you busy but most likely not very profitable.
Choose one technique and become really proficient at generating leads.
If you are involved in real estate now, 2020 is the time to think out of the box and add strategies to your current model. By doing so, you will increase revenue.
Lastly – it’s Saturday morning, and we are supposed to get some “weather” here in DC over the next few hours. Maybe you plan on binge-watching a new series on Netflix or Disney+.
I went out this morning to check on a few properties and made a short invitation to WREIA video and give you a few more details on the meeting.
You can check it out here.
Maybe – just maybe – instead of binge-watching a show, you can take a few minutes and focus on YOU and expanding your business and your profits in 2020.
Make a plan and execute on it. That’s what Monday night is going to be all about.