In 2021, investing in real estate has one of the best returns, especially when compared to other forms of investing. Real estate has one of the lowest correlations with the stock market. This means it suffers with less volatility. Every real estate investor should be aware of the best real estate investment strategies of 2021. When it comes to real estate opportunities, the early bird gets the worm!
Ninety percent of all millionaires become so through owning real estate. – Andrew Carnegie
Benefits of Investing In Real Estate
We all see the potential financial rewards that could be attained from real estate investing. It’s also no secret that there are many benefits to investing in real estate. These benefits also offset the costs. The best part is that real estate investors can be earning a steady flow of income to secure financial freedom for years to come.
Many people have their own reasons for looking into investing. Perhaps you want to create a multiple stream of income, quit a 9-5 job or save for retirement. The power of real estate investing helps you get to these goals sooner. Investing in properties will also offer the best returns on your investment. Here are just a few benefits of real estate investing:
- Steady Cashflow and Income
- Tax Benefits
- Long Term Financial Security
- Mortgage Payments Are Covered
- Ability to Be Your Own Boss
The Best Real Estate Investment Strategies
A portfolio with geographically diverse assets will get you farther than only having a few “eggs in your basket”. These diverse investments can help you weather various storms. Below, we outline the best real estate investment strategies that will give you an edge on the market.
Wholesaling
Wholesaling is a lot similar to house flipping, both of which are not passive forms of investment. It is one of the investment strategies that you can do with little credit or even bad credit. However, wholesaling takes up a lot of your time. It is an investment strategy that requires you to utilize all of your skills. Wholesaling follows a specific process.
- Fin a property, fix the property, and assemble a purchase agreement.
- Find a buyer for your property, and pay the terms of the agreement
- The buyer pays the property in terms of the agreement you’ve set up.
- The buyer is not the homeowner
The caveat is that wholesaling is not ideal for beginners. However, when done properly, it can be a rewarding process.
Tax Lien Investing
Tax lien investing is a fairly straightforward process and one of the best and easiest ways to get started in real estate investing. However, tax liens offer an indirect way to purchase properties. You will be purchasing tax lien certificates with the hope of a return later.
What Are Tax Liens?
Tax liens are certificates that are created by local governments that place liens on people’s properties as a result of unpaid property taxes. 28 states in the US allow for the sale of lien certificates. Did you know that there are $21 billion of delinquent property taxes each year? So with that in mind, there is a lot of money to be made from tax lien investing. Tax lien investing has grown into a massive industry with many opportunities for making money.
How Does Tax Lien Investing Work?
There are a few ways that you can get started with tax lien investing. They can be purchased though buying the property at the auction or by investing. However, tax liens are different than mortgage liens. Mortgage liens are liens that give your lender a claim to your property until you pay back your mortgage loan. On the other hand, a tax lien gives the government or owner of the tax lien certificate claim to the property.
Tax Deed Investing
Both tax deeds and tax liens are similar. However, there are a few differences between the two. The public auction that is conducted by the governing body transfers ownership and interest by deed to the winning bidder at the auction. At tax deed sales, you are bidding to gain title to the property itself. You do not receive a specified rate of return.
Redemption Periods
Tax deeds can be either redeemable or not redeemable. If the state has a redemption period. If the state has a redemption period, the property owner or other party has a vested interest in the property. A lender can pay the delinquent property tax plus fees and penalties. However, if there is no redemption period, the property is transferred to the new buyer and the prior owners interest is erased. This will include their other debts or encumbrances.
How to Invest In Tax Deeds
When you gain a property though winning a tax deed sale, most investors have various ways of investing in them
- Fix and flip (rehab) the property
- Keep it as a rental
- Sell it as is (wholesale to an investor)
Overage Surplus Recovery
So what is Overage Surplus Recovery? Overage Surplus Recovery is when a property is sold in a tax sale for more than the delinquent amount. In this case, interested parties like the property own or lender could collect the overage. In Jackie Jacksons’ new course, you will learn how to claim a tax sale surplus, file a claim for the tax sale surplus.
Start Investing In Real Estate
The Jackie Jackson is a Real Estate Coach and Mentor that teaches investors of all backgrounds – working mothers, military, medial staff and real estate agents. Jackie is passionate about coaching her students. She believes this is a non-negotiable step that every new real estate investor must take.
Real estate has the power to give you a massive edge, and has a reputation for becoming a “Millionaire Factory”. These barriers are long gone and though these real estate investment strategies, you can build REAL and lasting wealth.
The Tax Deed Genius Real Estate Investor Training Program
Are you ready to build wealth through multiple streams of income? The Tax Deed Genius Real Estate Investor Training Program is an amazing 8-week program for both new and experienced real estate entrepreneurs. Now you too can take advantage of the endless lucrative investing opportunities through tax liens, tax deeds and overage surplus recovery. Click here to view the course content and to purchase Tax Deed Genius.
