Buying a home is the largest single investment most people will ever make but there are other real estate investments available to those seeking a way to diversify their real estate related resources.
1. Tax Certificates. Unpaid property taxes and other liens such as paving or utility assessments are often “auctioned” by local government to maintain the tax basis. Although the exact methods differ from county to county, most require a buyer to pay the tax assessment in exchange for a guaranteed rate of interest when the owner “redeems” the property. Interest rates can be as high as 18 percent in some states.
2. Tax Deed Sales. Many people investing in Minnesota real estate tax certificates confuse them with tax deeds. A tax deed sale typically takes place when a certificate or other lien holder petitions to have the property sold to satisfy the money owed.
3. Surplus Land Sales. Relatively unknown, surplus land sales are typically run by state, local or federal entities – or in some cases very large corporate interests – when tracts of land are no longer needed.
4. Foreclosures. One of the most widely known investment real estate sources includes foreclosure sales where a lender has taken the property back due to non-payment or other issues.
5. REIT. Real Estate Investment Trusts are a common vehicle for investing in real estate that blends the convenience of the financial market with the underlying assets of real estate.
For additional information, please contact:
|Tami Rapaport’s Team
Coldwell Banker Residential Brokerage
130 Dean Drive
Tenafly, NJ. 07670
Direct Line: 201-227-2045
201-567-7788 ext. 127