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Wholesaling - With Nearly No
Risk vs. Long Term Real Estate
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Tax Lien and Tax Deed Investing:
The Fundamental Approach™
By Attorney and MBA:
Darius M. Barazandeh |
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By Darius M.
Barazandeh, Attorney at Law / M.B.A.
Home Study Courses by
Darius
Let’s start out clarifying a few points about ‘short term’
investing and ‘long term’ investing.
First, understand that wholesaling and ‘flipping’ houses
are for short term
activities.
Traditionally, when we think of real estate investing, we
envision someone buying a property and holding the property for
the long term. In
this 'traditional’ buying situation, the investor would find a
good and well maintained property sold through a real estate
agent, borrow the money from a bank to fund the purchase and
then hold the property for a number of years.
The property might have rental income and certainly over
time would increase in value.
At the end of perhaps 10, 20 or 30 years, the true
investor has a property that has appreciated in value and maybe
even paid off. This
is a long term real estate investor.
To
the contrary, what we will be teaching you in this program is
quite different.
From this point forward we are not going to use the term
investor (if I can help it!) to describe the short term buyer
and seller of real estate.
We will call the short term buyer and seller a
‘real estate
entrepreneur’.
Thus, one involved in the short term buying and selling of real
estate is in essence, building a true business, a business which
supplies others in the real estate industry with an inventory of
properties. For
example, unlike
the long term real estate investor:
1)
The short term
buyer may never obtain a loan on the property!
2)
The short term
buyer may or may not perform repairs on a property!
3)
The short term
buyer’s total investment in the property may be only $50 to $100
and their return might be 50 times this amount!
4)
The short term
buyer may hold only a contract to buy the property and may sell
or ‘assign’ this contract to another investor for a profit of
$3,000 to $5,000 in 1 week!
5)
The short term
buyer won’t always use a real estate agent and in many instances
will buy the property from someone who is ‘motivated’ to sell!
6)
The short term
buyer might buy a property that needs repairs and may spend
months coordinating such repairs, and then sell the property!
7)
The short term
buyer might learn about the property from a beginning investor
and not a trained real estate agent!
8)
The short term
buyer does not rely on market appreciation.
They rely on ‘buying correctly’ at the right price and
under a very specific set of conditions!
As you can see, there are some
significant differences.
The first of which is that the property is generally being sold
quickly (i.e., in less than a year in most instances).
Also, you might notice that the short term buyer may
never obtain a loan in order to purchase the property.
The short term buyer may only invest $50 to $100 in the
property and then ‘assign’ or ‘sell’ their rights to the
property for $3,000 to $5,000.
My purpose for introducing these 7
fundamental differences is to change how you think of this
process. The short term buying and selling of real estate
is without question
more aptly a business activity than an investment activity.
Take a moment and think about any successful business that
you know. As you can imagine, there are numerous parties
and players in such a business.
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The author, Darius M.
Barazandeh, Esq. is a licensed attorney in the state of Texas. In
addition to his legal knowledge he has a Masters Degree (M.B.A.) in
Business Finance and brings experience from numerous fields
including tax sale investing, real estate construction, corporate
finance, and business consulting. Frustrated by the lack of
realistic information regarding tax foreclosure sales and other
investments, he is "unlocking the secrets" to many of these creative
investment methods with his unique 'clear cut' writing style,
attention to detail, and legal knowledge.
Current Membership Includes:
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Real Estate, Probate, and Trust Law Division of the Texas Bar Association
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Business Law Division of the Texas Bar Association
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Taxation Division of the Texas Bar Association
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Environmental and Natural Resources Division of the Texas Bar Association
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Alternative Dispute Resolution Division of the Texas Bar Association
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Consumer Law Division of the Texas Bar Association
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Attorney's
Step-by-Step Guide: To Investing In Tax Lien
Certificates
The Complete,
Step-by-Step Guide to Investing in Government Tax
Foreclosures
By
Darius M. Barazandeh, J.D./M.B.A.
Click Here for More
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