Life can be ironic. Before I started selling on eBay, I read the Rich Dad, Poor Dad series and was determined to start investing in Real Estate. I began looking around for inexpensive properties to buy. That was just before the economy collapse of 2007. After real estate declined in value and my husband’s income also declined in value (we were just thankful he kept his job–many of his colleagues didn’t,) I didn’t have any money to invest.
I started selling online to earn the money to buy real estate. My online business grew and I more or less forgot about the real estate. I was having fun and earning plenty.
Fast forward to 2012. Greg (my hubby) came across a great idea for real estate investing–tax liens. Even though I had lost my initial interest in real estate, the interest quickly re-sparked. Plus, it turns out that the state I live in (and have quietly cursed for not having a whole lot of good qualities) has one of the highest returns on tax liens. Who Knew? People travel from across the county to invest in tax liens in Indiana.
Tax lien investing is not hard, but it isn’t entirely simple either. The jist of it is that when someone fails to pay property taxes, the county puts a lien on their home. I can pay off the person’s taxes and obtain a first position right to the property. This way the county gets the taxes due and they can keep doing their government things—funding schools and roads and police and so forth. If the homeowner pays off their taxes, they have to pay me back the taxes PLUS an additional 13 percent return. If they fail to pay off the taxes, I get the house. It is really a win-win-win situation. The homeowner gets time to pay off their taxes, the county gets their money, and I get a return on my money (or the house in many cases.)
We now buy tax liens on a regular basis. We also purchase distressed property and fix it up. We have flipped 7 houses and have 3 rentals so far.
There are dozens of ways to make money in real estate. Buy, renovate and sell, buy and sell quickly, buy and rent are the few that we practice so far.
We are about 12 houses and 3 years into the real estate investing game. It has been a learning experience and it has all the things I love–potential for huge returns, lots of ways to make money and entrepreneurs galore. We are getting better and better at this real estate game and I am excited to see where it takes us.
Stay tuned for blog posts and updates as this income journey progresses.