Darius Barazandeh
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Why the Stock Market Is Not Necessarily the Answer
Like millions of others you are probably wondering where you can attain the greatest and safest return for your money in the shortest period of time. Finding the right investment vehicle can be very difficult to say the least. The stock market can give you stable long term appreciation potential if you diversify and hold for a number years. Sadly, however one downturn in the market and years of gains can be wiped out overnight. Unfortunately, most Americans will stop looking for other ways to higher yields. They will leave their money in the stock market and must continually hope…
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Wholesaling – With Nearly No Risk vs. Long Term Real Estate
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…
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What Is Wholesaling And How Does It Work?
Let’s assume that John is interested in getting involved with real estate but does not have very much money or experience. John joins a local real estate club that meets every month in his city. He learns that one investor, named Kathy, will pay him a “finders fee” if he lets them know of any properties that are available that appear to be “distressed” and have owners who want to sell their property.Wholesaling Case Study Part 1 – The PropertyJohn thinks this is great because he drives all over town at his current job and does drive through neighborhoods many…
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Understanding Corporations, LLC’s and Limited Partnerships
The best way to understand a corporation, limited liability company (or even a limited partnership) is to realize that each creates a special legal relationship or privilege between the business owner(s) and the government. These areas of government include:State Government (including state taxing authorities and the state court system).The Federal Government (specifically the IRS and the Bankruptcy court system).You may be saying, alright Darius, I still don’t understand what you mean by a relationship or privilege. The best way that I can put it is this: A business entity is a legal relationship which allows for certain privileges. When teaching…
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Understanding Contract Conditions Clauses
You may hear conditions clauses being called “weasel clauses, or contract contingencies”. Conditions clauses allow the buyer or the seller to end the contract upon the happening or non-happening of an event. Your purchase contract has several key conditions clauses. This is because in wholesale transactions you will want the right to end the contract or re-negotiate the purchase price if the property turns out to be less attractive than you thought.For example, you may discover that there are additional liens on the title report that the seller did not know about or disclose. Your retail flipper may inspect the…
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Texas Tax Deed Auctions: The Most Lucrative Tax Sale State – Part II
Favorable Texas Laws!At this point I am sure that most of you understand tax delinquent property in Texas is sold for back taxes at a public auction. Now let’s cover some of the interesting distinctions and benefits that the Texas tax sale market can offer:I. At Interest Rates of 25% to 50% Texas Provides the Highest Profits if a Redemption Occurs: In Texas, if the delinquent taxpayer wants to obtain their property after your purchase at sale they must pay you either 25% (for first year and 180 day redemptions). In some situations a 2 year redemption will apply, but…
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Your Guide to Auctions in the Most Lucrative Tax Sale State
Tax deed sales can present great opportunities for real estate investors, but you need to understand how they work before you purchase tax-delinquent properties for yourself. Though you can find incredible deals, the process can also be more complex and challenging than buying a home in a more traditional way. However, the extra work is often worthwhile for serious investors, since there is significant potential to make a lucrative profit. Anyone with tax deed experience can tell you that Texas is by far the best state to pursue tax sales, for a variety of reasons. If you want to learn…
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Tax Sales, Tax Certificates, Tax Deeds: Due Diligence Matters!
We have all heard the ‘infomercial’ and the Internet claims regarding tax foreclosed property:”You will own the property FREE and CLEAR!””All other liens and interests are WIPED OUT!””You will hold the FIRST PRIORITY security interest!””The Government GUARANTEES these properties!””All liens, interests, and encumbrances are ERASED!””You can do this part-time with nothing down!””You don’t need to set up a company just get out there and make a deal!”While this can make great marketing material it is not in accord with the reality of tax foreclosure purchases. As an attorney, I learned in law school that every rule of law has an…
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Tax Liens and Tax Deeds – Some Basics for Your Success
We have all heard the stories and heard the claims about tax foreclosure sales. You know the stories where someone purchases a house or property for $1,000 dollars with a true market value of $50,000. They then turn around and sell it for a huge profit. In fact everywhere I turn someone is talking about the wonderful purchase opportunities that tax sales and tax liens can hold. Before I started investing in tax sales my first question was, “If this is such a great investment technique, why is it that I have not heard about it? There has to be…
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Tax Lien Investing: Everything You Wanted To Know About Tax Lien Purchases
Tax Lien Investing, tax lien riches, tax liens for wealth, tax lien this, tax lien that…everywhere you turn there seems to be someone selling information on tax liens. What most of these ‘overnight’ experts don’t tell you is what could go wrong with your investment if you fail to perform proper research. I have helped thousands of investors make significant profits from tax sales. I have seen the processes first hand in a number of different scenarios: 1) as an investor, 2) as an attorney, 3) as a business consultant to one of the largest tax collection entities in the…
