People have many misconceptions about real estate and that is mainly due to a lack of education. Many people believe you need a substantial amount of money to begin profiting from real estate and that simply isn’t true.
With as little a $10 you can begin investing in real estate. Investing in Tax Liens is the way to do this. When taxes go unpaid certain counties sell tax liens in order to recoup the unpaid taxes. These liens are offered for sale for as low as $10 and sometimes even lower.
So you have purchased a tax lien and are now wondering how you make money off of it. If you purchased it for as little as $10 chances are it is vacant land. Property owners have (depending on the county and state) 4 months all the way up to 3 years to pay the tax lien albeit at an interest rate which again varies by county and state. This is one way you can make money.
I will use the state of Indiana as en example as it is a state were I do a lot of tax lien deals. If you purchase a tax lien for $10 and the property owner pays the lien off after the 4 month redemption period at 12% you have just made $1.20 in only 4 months on a $10 investment. If the property owner doesn’t pay the lien within the redemption period you know own a piece of property for only $10.
This was just an example but it is a simple way to begin investing in real estate and I will show you real life examples in later posts.