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A Brief Look at Tax Deed Investing
Currently around half of the states offer tax lien certificates
and the rest offer something called tax deeds or a combination
of both tax liens and tax deeds.
In a tax deed state, you do not buy the lien, you are bidding on
the actual...
How To Improve Your Negotiating Skills
Negotiation will be an important area for every homebased business owner, especially in lease purchasing. Whether you're dealing with suppliers, employees, or prospective clients, you're negotiating. The following tips will help you to negotiate...
Investing and the Fear of Regret and Greed
Discipline can be simply defined as your ability to follow your investing and trading plan. Discipline is a rather simple concept. You just need to define what, when and how you want to trade and manage it. You also need to decide how to handle...
Real Estate Investing - start with getting your own finances under control
Real estate has been a driving force in world economies since
the days of Babylon, one of the most fantastic developments the
world has ever known, and the desire to create, not destroy, is
alive and well.
To enter the realm of real estate...
Take Away Power For Real Estate Investing
As a real estate entrepreneur, you must decide to learn the
secret power associated with the takeaway. Maybe, you've already
used it before. You may have used it and didn't even know it.
Regardless, this method is a powerful trigger that will...
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The Durrett Rule Bites Foreclosure Investors
Folks learn that you know something about real estate investing and they eagerly ask you about buying foreclosure property.
The general assumption is that they can buy a beautiful home at a deep discount at a foreclosure auction.
Their smiles fade when you explain that they will have to pay cash on the spot and they must be able to research title to be sure they aren't buying trouble.
But wait... there's more... There is also a little something called the "Durrett Rule".
Oh boy... can that be a like a knife in the back. For example: You spend the time and effort scouting out a nice home scheduled for foreclosure auction. You search title and scare up the cash to have in your pocket when you go to the sale.
Hurray... You have the winning bid at the foreclosure sale and buy the home at about a 40% discount to market value. After doing your happy dance you spend the next few weeks doing needed fix up. Then you find a renter and settle back to collect rents for the next few years.
But wait! Who's that knocking on the door.
Why it's a nice man who says he is taking the home away from you. Who is this pretentious devil? He is the dreaded... BANKRUPTCY TRUSTEE!
Shortly after the original homeowner lost his house he filed for
bankruptcy. The wheels of the bankruptcy court grind slowly and the trustee just recently learned that the house had been sold at the auction.
And... The foreclosed upon owner had a nice hunk of equity in the home when he lost it. Uh oh.. get ready for this. It is trustee's job to capture that equity so it can be distributed among the bankrupt home owner's creditors.
Can he do that?
Yes! Under the power granted by The Durrett Rule the trustee can show you the door and claim the home in the name of the bankruptcy court.
You, see the bankruptcy court has more power than Edison Electric. It can do about anything it wants when it comes to assets and creditors.
Oh sure, months later, after a battle in the bankruptcy court, you should be able to recover the money you paid for the home. Of course... no interest is paid on the money for the time it is tied up in court and you will not be able to recover the fix-up costs or attorney fees needed to get your money back.
Buying at foreclosure sales is not for sissies! Stick to an easy money tactic... buy in the preforeclosure period.
About The Author
Mark Walters is an investor and author. You can find his
published material at http://www.CashFlowInstitute.com
http://cfiblog.blogspot.com/
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