Can You Make Money With Passive Income in a Down Real Estate Market?

There are many ways to make money in any kind of market. Currently the real estate market is in a slump but there are still a few ways to make money, and lot’s of it.

Foreclosures

Although the real estate market is in a slump and foreclosures are on the rise, there has never been a better time to invest foreclosures.

With foreclosures you can buy property for as little as $0.60 or $0.70 on the dollar. That is a discount of bout 70% from market values. You can put some work into the property, sell it at a discount and still make a decent profit on your money.

Rental properties

Buying rental properties are one of the best ways to build wealth in real estate investing. With houses being sold at their current low prices, many people are avoiding real estate. This gives you a great opportunity to buy rental properties at a VERY cheap price. A friend of mine told me that houses in Detroit were selling for as low as $4,000 because the economy was so bad and everyone was running away from their homes to get better opportunities elsewhere.

Imagine if you bought one of these properties for $4,000 and rented it out for $400 per month. By renting this property at $400 per month you are making 10% on your money. After 10months you will have all your money back and everything else will be pure profit.

Tax Lien

Buying tax liens are a way for you to get paid to a commission (up to 50% per year or more) to pay other people’s property taxes.

When someone is unable to pay their property taxes, the city is unable to fund public services like the fire department, police department, etc.

To address this, the city will place a lien on the property for the “past due” property taxes and they will sell this at a tax lien auction. If the home owner does not get caught up, he or she will lose their property to foreclosure and the holder of the lien will get the property for whatever they paid for the tax lien.

If the owner does get caught up, the tax lien investor will receive his or her money back, and they will also receive a profit of up to 50% and in some cases much more.

Tax Deed

Tax deed is a lot like Tax lien in that it involves someone who is behind on their property taxes on their home. The big difference is that with tax Deed investing you are bidding for ownership on the property.

If you win at a tax deed auction, you will own that property free and clear of any mortgages and liens.

Dale Poyser has been investing for over a decade and has done meticulous research on how to build wealth. His primary focus is on strategies that can create low risk residual streams of income.

Not only does Dale personally practice the methods he writes about, he has also coached many others in these methods to show how easy it is to make money with passive residual streams of income. You can read more about Dale’s strategies at http://bestresidualincomestrategies.com/