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How To Put Your Cash Flow on Auto Pilot PDF Print E-mail
Written by Jack Bosch   
Monday, 01 March 2010 17:24

Tips on How to Cash In on Your Land Deals


As you buy properties using my three techniques of you will need to determine whether you want to sell them for CASH only or for TERMS, meaning with a loan which you carry back. Ideally you will find that you want to do a combination of both techniques.

But before I get into the sales portion of this here is a refresher on my three methods to buy properties for pennies on the dollar:


1.    Tax Lien Sales, where you buy a Tax Lien on properties unlikely to be redeemed and then foreclose on the lien once the state statues allow you to.


2.    Tax Deeds Sales, you buy a property outright at Tax Deed Sale.


3.    My favorite method: My personal Direct Investment Method, where you buy tax delinquent properties directly from the often long time owners for pennies on the dollar outside of the auctions and sometimes years before these properties come up for auction.

Once you have the properties you are probably looking to sell them so you can actually realize the profits you have made when buying.

In order to optimize your Cash Flow and put it on Auto Pilot here are some guidelines:

  • Take the properties you paid more than usual for and sell them for cash. You want to get your capital right back plus some and then reinvest that amount.

 

  • Cheap properties on the contrary, where the spread between purchase price and Sale price is LARGE are IDEAL candidates for Term sales, because you might recover your purchase price with the down payment alone or with the down payment and a few monthly payments and then the rest is profits.

 

  • Do a combination of both transaction types, Cash sales and Term Sales to get cash in and build up

 

  • Take some HIGH VALUE properties for which you only paid 20%-30% of market value and sell them for CASH (no financing). This should bring you multiple of your investment in CASH.

 

  • Then take that what you initially invested and buy another one of those high profit properties.
  • Take what’s left over and buy a lot of smaller lower value properties which you can literally pick up at a few hundred dollars each and sell for a few thousand each ON TERMS WITH FINANCING and a low down payment (of a few hundred dollars).


And then enjoy receiving checks in the mail, first one then a few and soon enough you can scale this to have dozens and even hundreds of checks coming your way each month on property you owe nothing on and which you sell for a multiple of what it is worth.

Jack Bosch is one of the Country’s foremost experts in Tax Delinquent Property Investing, Land and more recently an educator in Real Estate Investment Matters.

 
Understanding the Motives of Tax Delinquent Property Owners PDF Print E-mail
Written by Jack Bosch   
Friday, 26 February 2010 17:05

Why the Psychology of motivated sellers works in Your Favor


When someone decides to stop making their property tax payments and let their property go for taxes, there are many reasons for this.

But below these superficial reasons is a feeling of the owner that he/she just does not want to deal with this property anymore.

Reality does really not play a big role in the minds of these owners. In their minds they just wrote this property off and do not want to deal with it anymore.

They fully know that they could sell the property fast if they would only sell it at a discount and advertise it a little bit, but even that is too much effort for them. And it doesn’t even matter if they could recover thousands and even tens of thousands of dollars from such a sale.  Once their mind is made up that they don’t want the property anymore they rarely sway from their position.

This is GREAT for you because you as an investor learning from people like me how to find these people and buy their properties for as little as $100 to $500 can make a fortune with these properties. And you are not even taking advantage of the sellers.

In many of my deals I have actually told the seller that I will re-sell the property down the road for a good profit and they have congratulated me to this and wished me luck.

So buying Tax Delinquent properties directly from the owners for purposes of reselling them is not something you have to hide from your sellers but instead something you can be upfront about.

The reasons a property owner ultimately gets to the point of deciding to let a property go for taxes are multi-fold, but many of them are centered around the following scenarios:

1.    A Property owner tried selling their property in a bad market many years ago using an even worse Real Estate Agent. The property did not sell and now they think it cannot be sold.


2.    The Owner tried in the past to sell the property for CASH ONLY, no financing. Since obtaining Bank financing on raw, vacant land is more challenging than on houses, this diminishes the pool of available buyers drastically. Most people don’t have $5,000, $10,000 or $20,000 sitting in their bank accounts ready to be used to buy a piece of land.  Since this did not lead to success they now are not willing to try it again, or don’t even know that they could sell  the piece of land fast with seller financing.


3.    The owner is an absentee owner who was for many years hoping for some development to spring up in the property area. If this did not happen, he looses faith in his investment and decides to cut his losses. However, what these owners do not realize is that today we live in the age of the Internet and the entire world is their market. This was not the case to that degree even 10 years ago and not at all 15-20 years ago. As a result, one person’s junk is another person’s treasure.

There are Vast numbers of people all over the US looking for any type of real estate at any given time. It is just a matter of you being able to put it online (I can help) and expose this piece of land to the most people possible and for maximum profits.

Jack Bosch is a real estate investor specializing in raw land. He shows students and investors around the world how to make land investments that make money now and in the future

 
Why Land is a Great Investment PDF Print E-mail
Written by Jack Bosch   
Friday, 26 February 2010 16:57

Why Land is the Greatest American Dream That Every Investor Should Buy Into.

If you have even a passing interest in real estate, you've undoubtedly heard one or more of the so-called "experts" advising against buying undeveloped land.  Why?  “Because it generates no income” right?  Wrong, the fact is that they're not telling you the whole story about raw land.  There happens to be another school of thought entirely.  And once you take notice and begin to analyze things clearly, you'll start to see that buying land can actually be a tremendous wealth builder, one that can generate a great monthly cash flow.

Let's think about this for a moment.  For literally hundreds of years, vast fortunes have been made in America by owning land.  This has occurred in one of two basic ways: either the owner held land that lay in the pathway of progress and growth, or the owner held land that someone else sought to buy in order to change how it was being used.  (Remember when the Disney Corporation bought the swamplands near Orlando?)  These same basic premises work just as well today.  Owning a well-positioned tract of land can return many, MANY times the amount of money invested in it. 

Aside from just buying low or in a growing area and selling the property for cash there is a whole other world that most investors overlook. People for the most part usually understand that money can be made in real estate, most people even know someone that has made it big in real estate. But the question I still always get about land investing is “How can I build a cash flow by investing in land?”. Since undeveloped land has nothing on it most people think that they will have to build a house or apartment complex on it before they can receive a monthly income stream from it. I always tell people that for years now I have been receiving a nice cash flow from my properties.

What’s my secret? Well while every other land investor in this county is either developing the land or selling it to someone else for cash, I have been selling a percentage of my properties on terms. So when someone buys a property from me they can pay me in cash or they can pay me just a down payment and finance the rest with me for a number of years. This allows me to receive checks every month for years after. I have been able to acquire hundreds of these notes over the past few years and this has allowed me to live quite comfortably even in down markets.

Jack Bosch is one of the Country’s foremost experts in Tax Delinquent Property Investing and more recently an educator in Real Estate Investment Matters.

 




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