Investing in the future is the message we are told to think about if we want to improve the chances of a happy life and many people are now doing this. Investing money comes in many areas from real estate to stocks and shares; the choice available is huge and will depend on your individual needs. Every single one of these examples can help make a small fortune but if not, enough to enable you and your family to be financially independent. Unfortunately only guidance notes can be supplied here but they should ‘wet’ the appetite enough for you to want to learn more about this fascinating subject of investment.If you are considering the stock market then you will need to study the companies you wish to invest in otherwise you might as well throw your money away. Although the stock market is a great place to make money, there is also a degree of risk involved. If you are after long term security with huge financial gains then you will most likely look at real estate as a way to ear money. Although many people purchase homes that are in need of remodeling, you can make a great deal of money by fixing them up and re-selling them but it isn’t as simple as just buying a house, painting it, and then selling it on.There are however, many factors that should be considered before any attempt is made to invest in real estate; this is not the case with the next option. Probably the fastest growing way is through trading online and it’s relatively easy to manage your finances there as well and earn a substantial return. Anyone doing this is called a ‘trader’ and it is possible for them to carry out all the research on their own before they buy or sell within the market. This form of speculation must be done by a person with a strong sense of discipline because many people become addicted to the biding and find themselves losing money faster than they can earn it.A little training never hurt anyone so before you try your hand at investing, learn a little about the industry and research the subject first. After you choose the investment vehicle you want to use (i.e. real estate, mutual funds, stocks, mutual funds or real estate) do your research and make some money! For further information on the subject with some interesting case histories, simply visit the forums, blogs and websites that are a powerhouse of good advice. A final word of warning; investing is also a form of gambling and many people have become addicted and lost everything so make sure you are one of those that’s a winner.
If these uncertain economic times have you wondering about safe, alternative investment options, then you should consider tax lien and tax deed investments. With the right tools and a little research, you can achieve returns as high as 16% to 36%.How does it work?
Local tax authorities collect property taxes in order to fund their municipal infrastructure such as their school system. A property’s tax rate is a percentage of the property’s assessed value. When a property owner is unable or unwilling to pay the taxes, the taxing authority has a couple of options for recourse. One option is to place a tax lien on the property and sell it at auction, but only after a statutory waiting period of 2-5 years. Or they can sell the property tax lien to investors who will eventually be able to foreclose on the lien.When considering this type of investment option, it is important to understand some potential pitfalls. In many cases, these are easily remedied, but only if you know what to do.
First, examine the usability of the property. The best thing is to go out and take a look at the property you wish to purchase or bid on. Although there may not be anything wrong with the property itself, you may find that it is not useful for building. Things like measuring mistakes, zoning issues, and a poor or inaccessible location can ruin the value of a property and make resale a nightmare.You can easily avoid these situations by following a few simple steps for every property that you are considering.
o Get the plat map. This is simply the record of the property’s survey and can be obtained from the county.
o Visit the property. If it is difficult to get to, then chances are it is not a property you want to invest in.
o Find out if the property is in a flood zone.A second problem you may run into is that a property’s value is less than the amount of taxes owed. You typically see this in properties that have low value from the start or when it takes too long for the property to be offered at a tax lien or deed sale. Additionally, the county adds penalties every year to property with delinquent taxes. The back taxes itself, the year over year penalties, and the accrued interest can all add up and remove any potential for a good resale price. A property with an annual tax bill of only $200 can have thousands of dollars worth of unpaid taxes, penalties, and fees. Getting a good estimate of the property’s value is the best way to avoid getting into an unprofitable situation.A third problem to watch out for is environmental issues. This is a problem many investors fear the most especially when buying vacant land. Follow these simple steps to minimize the risk:
o Obtain a list of condemned properties from the county
o Visit the property and take a look around. If the property is occupied, you may not be able to do this.
o Contact the state’s office for environmental issues (for example, the “Arizona Department of Environmental Quality”). They will be able to let you know if the property in question has any known issues.
o Look at the property records to see if any environmental concerns have been recorded.Learn more about tax lien and tax deed investing at http://www.landprofitsreview.com ,and check out my course entitled the Land Profit Generator. Also, you will have the opportunity to sign up for our free list that brings real estate investing tips and discounts right to your inbox. No spam, just content!