Beginners guide to becoming WEALTHY

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Another question: Kiyosaki advocates using escape clauses with nonexistant business partners:

from Rich dad Poor Dad, pg. 123:

...And I always make offers with escape clauses. In real estate, I make an offer with the words "subject to approval of business partner." I never specify who the business partner is. Most people do not know my partner is my cat. If they accept the offer, and I don't want the deal, I call my home and speak to my cat. I make this absurd statement to illustrate how absurdly easy and simple the game is. So many people make things too difficult and take them too seriously.

Is it legal to do this? Someone on another board claims that it's a violation of contract law, not a criminal infraction. He stated that contract-related fraud can also be tortious in some states.


Please advise.

 

[al77]

tax lien

STR8UP,

Have you had any experience with tax lien\deeds?
More specifically:
How would you do reserach regarding teh property in the aution?
What are the sources of the info?

And what books you may recommed about it?

 

[cinephile]

Great Thread-Thanks for the advice

Okay, I have been interested in RE for a long time but have never take the plunge. So I have now decided to do so.

My questions are how do you find the properties.

Do you deal with auctions and foreclosures?

How do you set up the loans?

I know these are pretty basic questions, but I did'nt see them specifically adressed.

Right now, I think I have a pretty good shot of pulling this off. I just got back my credit score and it is 710. I think that is pretty good. I am looking into buying a 1800 sq foot house and renting out. Round here rent is about 825 to 1000 for a house that size. What do you think is the most I should pay for a place like that?

Thanks for all the info so far.

 

[sifer]

Re: Great Thread-Thanks for the advice

cinephile

Originally posted by cinephile

My questions are how do you find the properties.
Everywhere, words of mouth, newspapers, ads, drive-bys, realtors, internet, banks, etcetc.

How do you set up the loans?
Depends on the loan.
http://www.qtcu.com.au/loans/FAQ.asp
This should be good for you.

What do you think is the most I should pay for a place like that?
Don't know, how many bedroom? Bathroom? Basement? Garage? Neighborhood? Age? etcetc. Just the current rent and house footage aren't enough.

 

[sifer]

Re: tax lien

al77

Originally posted by al77

How would you do reserach regarding teh property in the aution?

That depends on your plan, are they rational to begin with? Are you a short-term or long-term investor? Are you also a stock investor?

 

[al77]

Re: Re: tax lien

Originally posted by sifer
al77

That depends on your plan, are they rational to begin with? Are you a short-term or long-term investor? Are you also a stock investor?

if you buy deeds\lien, ideally you want to make sure there is no other agencies (FDIC, Drug agency) that have priority over your deeds that you buy at auction. You want to check it out before you buy deeds, i.e. have to do some reserach about it.

But how to do it, i.e. how to figure out what kind of agencies have more priority for a particular property?

 

[sifer]

Re: Re: Re: tax lien

Originally posted by al77
if you buy deeds\lien, ideally you want to make sure there is no other agencies (FDIC, Drug agency) that have priority over your deeds that you buy at auction. You want to check it out before you buy deeds, i.e. have to do some reserach about it.
There are 2 most important items you want to look for,

• IRS liens
• Bankruptcy liquidations

But how to do it, i.e. how to figure out what kind of agencies have more priority for a particular property?
You can do a complete background check on the owner of the property before you purchase any liens by employing a title search.

 

[al77]

Re: Re: Re: Re: tax lien

Originally posted by sifer

You can do a complete background check on the owner of the property before you purchase any liens by employing a title search.

You mean the title will show all those other liens etc?
Can it be done online somehow? How much does it cost approx?
It will require to check the title of quite a lot of properties...

 

[sifer]

al77

What state do you live in?

 

[al77]

Originally posted by sifer
al77

What state do you live in?

Deeds state, Michigan

 

[sifer]

Re: Re: Re: Re: Re: tax lien

Originally posted by al77
You mean the title will show all those other liens etc?
Generally speaking, yes.

Can it be done online somehow?
Yes. Everything can be done at home by phone or by the great world-weaved web.

How much does it cost approx?
This depends because service varies. I've seen from $0-$1000+.

It will require to check the title of quite a lot of properties...

"Is there anything else to watch out for Mr. Seifer?"

Yes. Every state law for title searching differs, I believe some requires an authority of some kind to accompany your title search while others you can freely search through yourself.

www.lienlawonline.com/lienlaw.asp is good for learning about lien laws in your state. For $200 you can have many questions answered professionally.

www.lawyers.com/lawyers/A~1020964~LDS/PURCHASING+HOME+MICHIGAN.htm is helpful for generic home-buying; Legal Title Issues.

www.titlesearch.com is good for general title searching for $170.

 

[al77]

Re: Re: Re: Re: Re: Re: tax lien

Originally posted by sifer
"Is there anything else to watch out for Mr. Seifer?"

Yes. Every state law for title searching differs, I believe some requires an authority of some kind to accompany your title search while others you can freely search through yourself.

www.lienlawonline.com/lienlaw.asp is good for learning about lien laws in your state. For $200 you can have many questions answered professionally.

www.lawyers.com/lawyers/A~1020964~LDS/PURCHASING+HOME+MICHIGAN.htm is helpful for generic home-buying; Legal Title Issues.

www.titlesearch.com is good for general title searching for $170.

Thanks a lot for so specific info!

Just wondering... well.. if you are going to buy deeds, you will have to reserach titles to many properties, ie. 10+ for sure...
Paying $170 for each title info seems like a lot, since it is not really buying the property, the deed could be like $500-$1000 and spend $170 on this purchase only to research title would not make much sense... am I missing somehting?
How people who deal with deeds do this kind of research?

 

[RepphIz]

rich dad poor dad is fake
robert kiyosaki is a liar! he doesnt teach u how to get rich! dont listen to the people here!!! theyre dangerous!

 

[sifer]

Re: Re: Re: Re: Re: Re: Re: tax lien

Originally posted by al77
Just wondering... well.. if you are going to buy deeds, you will have to reserach titles to many properties, ie. 10+ for sure...
This depends. I've seen people buy throughout the states instead of just their homestate. Maybe you'll get lucky and buy the first one you see.

Paying $170 for each title info seems like a lot, since it is not really buying the property, the deed could be like $500-$1000 and spend $170 on this purchase only to research title would not make much sense... am I missing somehting?
Sure, we're all missing some piece of a puzzle. If you do not want to spend $170, as I have said, there are service done for free in your state, you just have to look. I don't live where you live so I don't know any address or phone numbers I can give you to call.

How people who deal with deeds do this kind of research?
If you're interested in learning more about tax lien certificates, please take a look at,

http://www.savewealth.com/taxes/taxliens/
http://discount.vip.sina.com/certif...-certificate/buying-tax-lien-certificate.html for more info, scroll down for more links.
http://www.pfblog.com/blueprint/2307_buying_tax_liens_better_than_cds.shtml
http://www.taxliensalecertificate.com/ for a very good book that I've been recommended.

 

[Page]

Originally posted by RepphIz
rich dad poor dad is fake
robert kiyosaki is a liar! he doesnt teach u how to get rich! dont listen to the people here!!! theyre dangerous!

why should we listen to you? What proof do you have?

Most of what Kiyosaki says makes sense.

 

[ryan killa]

On tax liens ( what I just read).

They certainly look enticing, but a few cautions:

Accoring to the source, the IRS and creditors have the potential to claim your tax lien if the owner of the property enters bankruptcy.
In addition, some owners of their tax lien never actually check the property, and, potentially, the property may be the around the same value as the piece of paper itself.

 

[al77]

Originally posted by ryan killa
On tax liens ( what I just read).

Accoring to the source, the IRS and creditors have the potential to claim your tax lien if the owner of the property enters bankruptcy.

I am still thinking about this puzzle: conceptually you want to check most of the properties' title to figure out if there is any priority creditors before buying liens. So you have to check title for MANY properties. It seems straightforward but quite costly.
If there a way to check titles for "next to nothing"?

 

[Deep Dish]

Hey STR8UP

STR8UP:
We have a few pre-construction contracts pending as we speak. We try to stick with lower dollar units and the only area we are working in right now is undergoing an urban renaissance.

Yeah, and part of that urban renaissance would include the accidental burning down of a historic building housing a tattoo parlor and right across the street from where a midget used to promote a nightclub.

Anyway, I’ve been seriously considering starting a web business. I just haven’t found the right concept yet. The Internet is so saturated that it’s difficult to find the right niche.

(Oh, and a long time ago, I finally saw one of your commercials, one advertising a liquidation sale)

(I also wonder if this urban renaissance will result in more things to do at night. This place is relatively dead.)

 

[Page]

Originally posted by Deep Dish


Anyway, I’ve been seriously considering starting a web business. I just haven’t found the right concept yet. The Internet is so saturated that it’s difficult to find the right niche.

I've been there, done that. A few years ago, i started my web business, Pagewizard Web Design. (now you know the origin of my forum name)

The site is still up, (http://www.pwizard.com) but I have pretty much abandoned it as I at best operated at the break-even point and never really made a profit on it. As of late, it has become a liability to me, so I'm going to let it die when it comes up for renewal.

The point is, in order to succeed on the web, you have to get your name out there. You may have the best damn product in the world, but without a good business model, you're not going to see a profit, ever. This is true in the real world, but it's even more true on the web, because the web is way bigger than the real world and its easier for your business to get lost in it.

I'm not saying that you're going to fail outright at this, but make damn well sure that you have thought of a way to get your name out there, and that you have the revenue to do it.

 

[djbr]

First of all, bump

STR8UP, are you still listening? lol

I wanted your take on a specific situation.. in Brazil, interest goes as fat as 3,5% PER MONTH *if you get a good loan*. Real estate gives around 1% of face value per month.

I think here the only hot thing might be stocks, but I'm starting. Maybe you (or other guys) got some information about the stuff here.

Any ideas?