2007-08-25 10:48:14 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
This is one of these too good to be true get rich quick schemes. The way that it works is that you have to pay off whatever is owed on the home, often that is a mortgage in addition to the taxes to buy the home. The problem is that a lot of people go to these auctions (They are auctions) So while the minimum bid will be whatever is owed on the home, the price will be bid up to around market rates. So in theory if you were the only one bidding you might be able to buy a home for $500 or whatever they claim, but you wont be the only one bidding. The only reason these guys have have these infomercials is to make money, if you had some foolproof way to may a bunch of money (In real estate or you could predict the stock market) wouldn't you do it? If this was real these guys would be doing what they say all the time not on TV. Their, "I just want to help people or share my secret" talk is BS, people are not like that. The real money is in selling this stuff to people who don't think to ask questions.
2007-08-25 11:01:59 · answer #1 · answered by SeanS 2 · 2⤊ 0⤋
if it sounds too good to be true, it is.
tax foreclosures are a specialized business with arcane rules that differ from state to state and multiple risks [did the owners trash the place? did they leave at all? can you evict them? how soon?] and on and on
yes, money is made doing this. No, you can't get into the business cheap nor are the deals easy to either find or win. [Miami-Dade auctioned over 200 foreclosed properties in one recent month ... only 3 sold for anything under 50 cents on the value dollar. And these were bank foreclosures, not tax lien deals.] {NB: florida tax lien deals are very strange and definitely not for amateurs.}
saw on tv -- what that means is that some huckster wants to sell you the general ideas for how to get into the business -- probably for thousands of dollars. I'd bet dollars to donut holes that said huckster has never done a deal in your state.
GL
2007-08-25 18:08:56 · answer #2 · answered by Spock (rhp) 7 · 2⤊ 0⤋
Renee don't the TV shows make it sound so easy? Well what they describe are tax foreclosed properties. And you can go to the sale and bid along with everyone else there. It's not easy. You need to have your cash or cashier's check with you, and you will probably find most are in pretty bad condition. You can check on your counties website for tax foreclosures.
2007-08-25 17:55:49 · answer #3 · answered by Alterfemego 7 · 1⤊ 0⤋
I think they were talking about property that is about to be taken away from the owner because he/she is not paying theirs taxes. In some cases, you can "just" pay the taxes and nothing else.
2007-08-25 17:54:39 · answer #4 · answered by Rocketmaniac 7 · 0⤊ 0⤋
It's a scam to sell their books/tapes. The only one to get rich is the guy in the infomercial.
2007-08-26 09:07:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It's a scam. If you knew the secret of getting rich quick thru real estate, would you tell anyone how it works for $39.00?
2007-08-26 02:04:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋