Last Tuesday night at the MAREI meeting we got to learn more about Tax Lien and Deed investing from Tom DiAgostino and how you can harness this niche to go after financial freedom.
- Buy the lien and earn interest as 96% of all liens pay off.
- Buy the deed to get the house and steep discounts.
- Market to the lists for the most motivated sellers, buy the house and rent it for cash flow or flip it for a chunk of cash.
He then went on to explain how he now does deals inside of his Self Directed Roth IRA and now as he is over 59 1/2 he can pull out his profits and never pay taxes. . . . lets say that again, he keeps all the profits, no 25 to 30% going to Uncle Sam.
Tom noted that money is not everything in the world, but it sure can make things happen when you need it too. Then he shared his plan . . buy tax liens and deeds as well as market to targeted lists of property owners whose homes will be sold shortly for back taxes. He targets primarily properties with deceased owners. Sure once he gets the lien, they quite often pay off with interest, but often he gets the houses for 8 to 12 percent of value. Then he gets them rentable and after renting for a year or two, he is free and clear in the houses and is generating rental income with no debt service . . or he can sell the house.
One big deal he landed was a housing development that he picked up for back taxes and is now building out the houses with plans to retire on the profits in about 18 months after all houses are built and sold. . . . although after spending time with Tom, I don’t see much in the way of retiring as he loves the real estate investing game.
I found a few interesting videos online this morning that you might want to check out.
We wanted to share a few videos with you
Note Tom is teaching at MAREI on Saturday June 14th . . there are just a few seats left, get registered at http://www.MAREInet.com/Tax