Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Chapter 4

Protecting Your Investment

The difference between death and taxes is that death doesn’t get worse every time Congress meets.

—Will Rogers

WOW! It’s over and you had the winning bid! Congratulations—you now own a tax lien or maybe even a new property! Now that you have purchased your new investment, you need to take steps to ensure you are properly protecting it and maximizing its potential. The steps you need to take to protect yourself are sometimes very different, depending on whether you purchased a tax lien or a tax deed. In each of the steps I speak about below, I will outline these differences and make sure you have all of the information you need to keep your investment safe.

Of course, since you did your homework and due diligence, you know you’ve secured a good investment, and one that we consider Zero Risk. You learned that not all properties are created equal, and by eliminating the ones that may have potential built-in risks such as bad locations, low value ratios, or environmental problems, you are already one big step ahead of your competition. Even though you are not able to predict whether or not your property will appreciate in value and how economic factors will affect your property in the future, you have minimized the risks that are under your control, and have a built-in return on your investment.

In this chapter, we’re going to take a close look at what steps you need to take to protect your interest in your new investment, insurance and maintenance ...