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

Locating Investment Capital

One of the most common questions I hear is, “Where can I find the cash to increase my investments?” Now that you understand the power of tax lien investing, the only thing holding you back is cash.

When you invest in tax liens, unlike a regular home purchase, you don’t have the luxury of first finding a home and then seeking financing. Tax sales generally require that you have the funding you need immediately, and in fact, they almost always require a full cash payment on the day of purchase.

But most people don’t have significant capital immediately handy, and as a result they don’t take advantage of the huge investment opportunities that tax sales represent. But there is a solution: partner with other investors.

If you know someone who has ready cash, but perhaps doesn’t have the time or know-how to get involved in tax lien investing, make them an offer they can’t refuse. You put up the work, you put up your expertise, and they put up the cash. Agree to then split the proceeds in whatever way you both deem equitable. A private money partner can be a family member, personal friend, or even a stranger.

Alternatively, you could do what’s often called bird-dogging—collect a finder’s fee by identifying worthwhile properties for other investors so you’re not actually buying the property yourself. You simply get paid for hunting down the deals, then representing the true investor’s interest at the auction. It’s the perfect symbiotic relationship.

An investor ...