Make 25% to 50% in Under Two Years
Issue #2138
- WEALTHY: 1,000% returns on your money in the Lone Star State (Darius Barazandeh)
- HEALTHY: A 20-minute stress reliever (Dr. Matthew Anderson)
- WISE: Davy Crockett on Texas
ALSO IN THIS ISSUE:
- Why working from home could save your life (Jason Holland)
- Quick Review: the 4 steps to wealth, power, and success (Michael Masterson)
- It’s Fun to Know… about vacationing like a Central Asian nomad, by Charlie Byrne
- Add "trenchant" to your vocabulary
Revealed: Probably the Biggest Red Herring in History!
While the world’s been stock watching (and losing!), the elite quietly play a different game with different rules…
Feeling cheated and disillusioned by the stock market? Sure, you may have made a good trade here… but then lost on another. The people dutifully pour their hard-earned cash into investment banks to put into the stock market for them… and those investment banks gladly oblige, for a fat fee… which they invest somewhere else! I’m no conspiracy theorist, but in my opinion the stock market is really a diversion for the masses… a distraction from where the BIG and consistent money is made… in the world’s money mountain. And when I say “Money Mountain,” I speak quite literally… the BIGGEST mountain of money on the planet. Click here to read more…
"I must say as to what I have seen of Texas, it is the garden spot of the world, the best land and the best prospects for health I ever saw, and I do believe it is a fortune to any man to come here."
Davy Crockett
Texas Tax-Deed Auctions: Make 25% to 50% in Under Two Years
I’ve been intimately involved in tax-deed sales and tax-lien sales for the last eight years. After working with nearly 1,000 investors, I can tell you that the opportunities and laws relating to Texas tax-deed sales are second to none.
If you’re willing to do your research, you can buy Texas real estate for just pennies on the dollar. And even if your investment doesn’t hand you ownership of the property, you can still make a hefty profit of 25 percent to 50 percent in two years or less. In some cases, the investor can make a 25 percent return in less than six months, and that’s on the low end!
Here’s how the process works:
When property taxes aren’t paid in the state of Texas, a lawsuit is filed to collect them. If the owner then fails to pay, the county has the right to sell the property for the back-tax amount.
In other words, the county will offer the property at a public tax-sale auction, with an opening bid in the amount of back taxes owed. This figure will usually consist of:
- Delinquent property taxes
- Interest charges
- Penalty fees
- Legal costs
- Administrative charges and fees
When you buy a tax deed, you get all the rights held by the county or taxing unit. There are few restrictions regarding bidding at these sales. You don’t have to be a real estate agent or professional investor. However, you must be able to pay the bid amount within a short period of time, and you can’t be behind on your own taxes in that county.
After the sale, the delinquent taxpayer has the right to buy back or "redeem" the property for a specified period of time, which can be as short as 180 days. After that, you’re entitled to the property regardless of the purchase price. For example, you could become the owner even if you paid $15,000 for a tax deed on a property that has a market value of $165,000.
That sounds great, but what happens if the delinquent taxpayer decides to exercise his "right of redemption"? That is, what happens if he pays his delinquent taxes and penalties?
You still win, because the delinquent taxpayer must pay you an interest penalty as high as 25 percent… or even 50 percent for second-year redemptions. And if the delinquent taxpayer doesn’t redeem, you get full title to the property. In the example above, that’s a potential profit of 1,000 percent.
What Makes Texas the Best Place to Do Tax Sales?
While many states offer sales of tax liens or tax deeds, Texas is by far the best place to make a profit from the process. Here’s why:
1. Texas provides the highest profits if a redemption occurs (25 percent to 50 percent). If the delinquent taxpayer wants to redeem the property after your purchase, they must pay you 25 percent when the first-year and 180-day redemption periods apply And when the two-year redemptions apply, you’ll get a whopping 50 percent in the second year… one of the highest rates of return available in any state.
2. The redemption amount is based on the price you pay at auction, not on the back taxes. While most tax-lien states are only paying two percent to five percent in interest, Texas still pays a full 25 percent to 50 percent on redeemed deeds.
3. Additional fees and costs are included in the amount required for the delinquent taxpayer to redeem. What this means is that you’ll also get the penalty return (25 percent or 50 percent) on the deed recording fee, the amount paid to preserve and maintain the property, and any later taxes paid on the property… a significant return with very little downside.
4. Texas uses a "full-interest" penalty return system. This is very different than most tax-lien jurisdictions in which a quick "one month redemption" might total a modest one percent in interest or even less. In Texas, if the delinquent taxes are paid off a day after you buy the tax deed, you still get the full 25 percent.
5. Texas has monthly sales. Most tax-lien states have rapidly eroding interest returns and annual sales that herd investors into a giant yearly tax sale. This can create excess competition, confusion, and limited opportunities for investment. Texas counties have the option to do tax sales on the first Tuesday of each month, giving you the opportunity to profit many times during the year.
6. Texas has 254 counties, and each will conduct tax sales. While only the larger counties hold sales every month, smaller counties with less-frequent sales attract less competition.
7. More post-auction opportunities. Unsold tax-sale properties (known as "strike-off" properties) are often available for purchase at any time. In some situations, you can even offer less than the back-tax amount. Many of these properties will not even have a redemption period if enough time has elapsed since the original tax sale.
8. The Texas tax lien is a "super-priority" lien. The Texas tax lien generally has priority over nearly every other type of lien, debt, claim, or charge that may be attached to a property. Research is very important, however, and you’ll have to verify that "legal notice" has been sent to all affected parties.
9. The tax-sale investor also has rights to any rental income derived from a tax-sale property. At the time of this writing, Texas law allows the successful bidder any rents from the property immediately after the tax sale.
Ensure Your Profits With Due Diligence
While Texas has favorable tax laws, be sure to consider the following before investing in this market:
- Know which liens will survive foreclosure. Examples include state-tax and homeowner-association liens. Federal-tax liens also survive the foreclosure, but the federal government will simply pay you what you paid for the property at auction if they hold a lien on a Texas tax-sale property.
- View the property before the tax sale. In Texas, you have a very high likelihood of obtaining full title to the property. Make sure you see the property in person or by proxy before the tax sale.
- Know about other fees not included in the foreclosure. This is a possibility if the previous owner owes taxes that weren’t included in the tax-foreclosure lawsuit.
- Don’t do deals in your own name. Invest as an LLC (Limited Liability Company) or Corporation to avoid personal liability.
- You get full possession of the property immediately following the tax sale. This means that you must secure, protect, and insure the property without delay. At a minimum, you should install new locks, get insurance, and evict any "hostile" tenants.
Master this real estate investment strategy, and Texas will offer you tremendous profit opportunities.
[Ed. Note: Attorney Darius Barazandeh holds an MBA and is an active real-estate and tax-deed investor in Texas, as well as a leading national speaker on tax liens and corporate entities for small businesses and real estate investors. Darius will share his Texas Tax Deed secrets with Justin Ford in a reservations-only webinar on Wednesday, September 19th. Sign up now to secure your spot today.]
Make 25% in As Little As 6 Months… Up to 50% Or More in 1 to 2 Years… for Starters!
Earning 25% to 50% interest through a low-risk and low-maintenance investment is rare to say the least. But that’s exactly what one highly-secured investment with minimal downside and market risk can offer.
But that’s just the beginning… In many cases this low-risk investment will also hand you the keys to a real estate property for 1/4 of its market value or less… giving you a profit opportunity of 1,000% or more!
Your Commute Can Kill You
Michael Masterson is a longtime proponent of starting your own home-based business. And it’s not only a way to build wealth by doing something you enjoy. According to a Forbes Magazine study, it could also help protect your health from the dangers of commuting.
Using stats like EPA air-quality data, the average amount of time people spend in traffic, and the number of fatal car accidents for 25 of the country’s largest metropolitan areas, the researchers found that many dangerous conditions (inhaling exhaust fumes, being involved in a crash, and experiencing high blood pressure during stressful situations) are potentially shortening commuters’ lifespans.
Limiting the time it takes to get to and from work by finding a job closer to home can be a major factor in your quality of life. Completely eliminating your commute by starting a home-based business takes this idea one step further.
You can, for example, start a business selling information products online. E-mail newsletters, e-books, or audio or video programs - on almost any topic you can think of - are cheap to create, store, and deliver to your customers because they are in digital format. You don’t need a warehouse or office space. You can run the business from your kitchen table… or from anywhere in the world.
When you’re developing your information products, take the advice of publisher Gary Scott and make sure they are:
1. Interesting (to you and your customers)
2. Legal and ethical
3. Attractive to first-time buyers
4. Usable (filling some need for your customers)
5. Understandable
6. Timely
7. And, most important, salable (If it doesn’t sell, nothing else matters.)
[Ed. Note: This fall, Michael Masterson and a group of the world’s leading Internet marketing experts will be revealing proven techniques for shooting your online sales through the roof, creating over a dozen sources of new revenue, and tripling or even quadrupling your profits within the next 9 to 12 months. Sign up now for ETR’s fast-approaching 2007 Info-Marketing Bootcamp - Making a Fast Fortune on the "Other Side" of the Internet.]
Surviving Hell: The Power of Meditation
Whether it’s caused by the loss of a loved one, the loss of a job, the trauma of divorce, or even the new responsibilities of a promotion, extreme stress can sap your energy and motivation and leave you feeling helpless. Fortunately, there are simple actions you can take - starting today - to reduce your stress and leave you feeling calm and in control.
Meditation is one of the best stress relievers I know of. And the more stress you are experiencing, the more meditation you need. This spiritual (and psychological) technique is 5,000 years old. It is taught, in one form or another, by all of the world’s great religions. There is no debate, religious or scientific, about its value. And it is particularly helpful to anyone affected by extreme stress.
Here’s why:
Meditation quiets the mind, lowers blood pressure, rests and calms the body, and expands your ability to solve problems creatively. It also enhances and speeds spiritual growth. All of these benefits will help you survive and even transform your difficult life situation.
To meditate, sit in a comfortable chair in a quiet room. Both feet on the floor. Hands in your lap. Close your eyes. Breathe deeply three times and then normally. Repeat (in your mind), "Peace be with me." Your mind will wander. Simply bring it back by repeating "Peace be with me."
Try it. Do this for 20 minutes once a day. Twice a day is better. Make the time. It may be the best thing you do all day.
[Ed. Note: Dr. Matthew Anderson, author of The Prayer Diet, is a counselor and national columnist/expert on weight loss, motivation, self-management, and relationships. Read more of his articles on healthy living at ETR’s brand-new natural health e-letter. And to find tough-minded, outside-the-box guidance for taking charge of your life and/or your weight, click here.]
A Quick Review of My Basic Success Formula
1. Become an expert at something valuable.
It could be selling. Or marketing. Or managing salespeople and marketers. It could be developing new products. Or managing those who do.
2. Build a support network.
Get people on your side, both inside and outside your company. The best way to get people to support you is to spend your time trying to support them. Make a list of individuals whose advice you admire and start to actively champion their views.
3. Be caring.
Promote those below you. Mentor those who have potential. Care about your business, your products, and your employees - and let everyone know that you do.
4. Act before you have all the facts.
In other words, Ready, Fire, Aim! Lawrence Weinbach, CEO of Unisys, said it this way: "If you want to be a leader, you have to make decisions with 75 percent of the facts. If you wait for 95 percent, you are going to be a follower."
[Ed. Note: Get Michael Masterson’s insights into becoming successful in your business and personal life, achieving financial independence, and accomplishing all your goals on his brand-new website. You’ll find updates on all of Michael’s books, news on upcoming ETR events, Michael’s blog, and room to send in your comments and questions. Check it out today.]
It’s Fun to Know: Vacationing Like a Central Asian Nomad
By Charlie Byrne
A yurt is a large, wood-framed tent-like structure that has been used as the main dwelling of nomads throughout Central Asia for centuries. Now you, too, can enjoy the charms of the yurt, updated with modern conveniences (such as electricity), as you vacation in natural settings around the globe. "Resorts" offering yurt accommodations (along with gourmet dinners and a schedule of outdoor activities like hiking) have recently popped up in Northern California, Spain, Mexico, Turkey, France, and England.
My wife and I stayed at a place called Treebones Resort in Big Sur last spring. It’s a terrific combination, halfway between the "natural feeling" (and economy) of camping and the convenience of a hotel room. I was so relaxed and at ease, I wrote the intro to one of ETR’s most popular sales letters of the year - sitting in my yurt, in longhand on scraps of paper borrowed from the resort office! Then, in the evening, we grabbed a bottle of wine and joined the other "campers" at the main gathering area to watch the sun set over the Pacific.
Doesn’t get much better than that.
An Exciting Opportunity To Take Advantage Of A Trillion-Dollar Industry
Of the many paths to wealth, there is only one that Michael Masterson most consistently recommends to his closest friends and relatives.
It has all the advantages you want if you’re starting from scratch: simplicity, an extremely low entry cost and a huge and growing potential for wealth-building.
Here’s what I am talking about…
- Patrick Coffey
Word to the Wise: Trenchant
Something that’s "trenchant" (TREN-chunt) - from the French for "to cut" - is forceful, severe, or clearly defined. The word is related to "trench."
Example (as used by Edith Wharton in The Age of Innocence ): "The trenchant divisions between right and wrong, honest and dishonest, respectable and the reverse, had left so little scope for the unforeseen."
[Ed. Note: Become a more persuasive writer and speaker … build your self-confidence and intellect … increase your attractiveness to others … just by spending 10 VERY enjoyable minutes a day with ETR’s new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007