The John Beck scam...?

Question

Okay, I've done enough research to find that the John Beck Real Estate System is a scam. But, does anyone know of another program, website, book, etc. that has somewhat of the same concept that I can just do on my own. I don't have much money to start out with, but I really am interested in real estate. He said that he bought houses for low prices from people not paying their property tax. Then he buys the house, or property, for whatever was left in back taxes. I'd like to do something like that. Is it real?

Answer 1

tax liens are a legitimate investment in most states, however, the idea of buying a tax lien so you can get a house for pennies on the dollar rarely happens.

That is because almost all people will find a way to come up with the money to pay off the tax lien before foreclosure for that. The properties that you can normally foreclose on are timeshares or bare land. The timeshares are never worth the time, although often the land is worthwhile.

Tax liens are primarily a way investors can invest in something that gives them a good rate of return, because when the property owner pays of the lien (when they sell the home, etc) they pay the lien plus interest. And once in a while, one will fall through the cracks, but rarely.

If you don't have much money to start with, you might consider getting together with a group to pool your resources and credit.

Right now there are lots of foreclosures on the market, especially in Ohio, Pennsylvania and Upstate New York where you can buy great properties. I'm not talking about the ones on eBay that you can buy for $5000, they are generally condemned houses or in terribly blighted neighborhoods and are worth LESS than $5000.

Get five friends together, each ponies up $2,000-5,000. That gives you a nice fund for operating funds to put down payments on.

I'm looking at a prospective situation now. A two-family unit once sold for $95,000, now can be purchased for $59,000 (maybe less). It needs about $7,500 in repair (some plumbing, fixtures, paint, plastering and a real good cleaning) to make it a rental. Afterwards it should be worth probably $100,000 but just say $90,000 to be safe. It is a strong rental market now so getting as good tenant won't be hard. Refinance to get the investment money out then just sit on rental payments for 2-3 years (it should either break even, or more likely provide a small monthly income which will grow) until the sales market turns around for your end profit.

It is a simple formula. As an individual you need $10,000-30,000 cash and good credit to make it work. But if 3-5 people get together it is not that hard. And it doesn't use flaky creative finance or purchase techniques which can work sometimes but go screwy if you are not careful.

Answer 2

I am a Real Estate investor for over 15 years. 1. Go to ebay and buy information at half the cost - Carleton Sheets Real estate course - Dave Del Dotto - Ron Legrand - Robert Allen. You can always soak up the info., and resell it, some people have paid over $200 for the stuff and it sells for $25- $60 and less. Buying tax liens and getting a property may be tough depending on the state you live in. Get a real estate license it is the best thing i ever did. Sometimes everyones bidding on a foreclosure, and around the corner you can find an estate sale which no one is bidding on. A lot of this is done through the MLS. Some Real estate brokers will let you hang your license without having to sell real estate . Investigate this in your area.

Answer 3

Although, there are numerous ways to buy and sell real estate and capitalize on a down market, perhaps one of the most overlooked and under-rated process is locating a "hard money" loan program.These program generally loan an interested investor the money to purchase and rehab the property at a higher interest rate(16% to 20%), but for a relatively shorter period of time(3 months to 1 year) I frequently work with a small brokerage firm near Detroit MI. that has offered these programs for quite some time, and has proven quite successful. This company has a great number of associates that can provide distressed/foreclosed real estate that can be bought for pennies on the dollar and gain great value in a relatively short period of time. The program may not work for all, because it is credit score driven,but it is well worth looking into for someone that has a little money to start with.($500 to $1000) usually.

Lots of scams out there...., but there are some great programs that sound almost to good to be true, don' t pass them by. Do your homework first. Good luck!!!

Answer 4

It is partly real, and while it sounds easy, it is not. You have to know what you are doing and there is a lot of competition.

Essentially, when a home owner is delinquent with property taxes, the county will have an auction and sell the tax delinquencies. You bid on a property and pay the tax. The owner is notified and if he pays the tax and penalties, you collect the money. You collect more than you paid so you have a profit.

The county may sell the property at auction. You can bid on the property and if you are the high bidder you get the home. However, there are many knowledgeable people working in that area and they know the market.

Answer 5

We have been representing buyers of tax sales properties here in NM for years and yes the system of buying real estate for back taxes is legit in all states and the rules, laws, redemption time etc vary from state to state.
What you will need to do is go to your state's property taxation and revenue site and look up delinquent property tax department. Once there you will find all the rules, laws and or explanations on how it works in your state. The additional things you need to know that you will not find in those sites is that not all properties listed on the list they provide make it to the sales so since you will need to research the property title for encumbrances, liens etc the first step is to pick the better ones and order a search by a title company to determine what you will be inheriting besides the title. Most counties also have sites in where they explain how the tax sales work in their counties and their staff is very helpful.
Good luck

Answer 6

Serge M is correct but all he is talking about requires cash you do not have. There are no "no money down" auctions.

Most foreclosures are people just like you.

no If it is similar to John Beck it also is a scam.

There was a time when people would give options and contracts for deed with no money down very freely.

Those days are over. Laws have changed and people are wiser now.

On job satisfaction surveys scientist is usually on the top, Realtor is always near the bottom. Good luck.

Go to real estate school, get your license and become a Realtor.

Answer 7

Ron Legrand Scam

Answer 8

Some homes are foreclosed on by local governments because of taxes not being paid, however, there may be associated fees. So he didn't buy from the person, he bought from the person either holding the mortgage or the tax entity. Try your local county government's courthouse to see how they handle foreclosed properties.

Answer 9

the type of investing he describes is very much real...he is investing in tax lien certificates. You can get involved with this type of investing for very little money...It just depends on what jurisdiction you want to operate in.

Hope this helps...

Check out TaxSaleWealth
http://www.taxsalewealth.com

Answer 10

It is real IF and only if you have substantial connections with the lenders and taxing agencies in your area.