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As an example, do you know how to invest in Tax Lien Certificates and Tax Deeds? Briefly, state, county and local governments raise money to provide benefits and services via taxation. One type of taxation, is a tax on "real property." Pursuant to statute, the owner of a parcel of real property is assessed a dollar amount to pay based on the value of that real property.

This tax, in virtually all cases, is collected by the county where the property is located. If the owner of the property fails to pay the tax, the amount of the tax becomes a lien against the property. A lien against the property, however, does not help the county and local governments pay for the services and benefits they have promised to provide for their citizens.

The county needs the money now, not some time in the future. It needs that money in order to fulfill its budgetary obligations. By state statute, each county is authorized to collect the taxes due that remain unpaid by selling at public auction, either a Tax Lien Certificate or a Tax Deed.

Learning how to buy these Tax Lien Certificates and Tax Deeds is a very real way to achieve financial independence. The aim of this and the following articles is to help you understand, in layman's terms, how the process works and how you too can learn to use it successfully.

If you ask most people, you will find that very few of them even know that this form of investment exists. It is not well publicized; banks and brokerage houses have no incentive to tell you about it; and people who are doing it consider you competition.

Where do you spend money each month? Something I recommend to everyone is to take a look at their monthly expenses every so often and see what can be moved from the personal side to the business side.

Remember, to make an expense a legitimate write-off you need to ask yourself if that expense passes the "reasonable and necessary for the production of income" test.

Many of you who run your businesses through S Corporations (or LLCs taxed as S Corps) know all about estimated tax payments, too. In your case, the IRS makes you pay estimated tax on your profit distributions, particularly if your S Corporation is fairly profitable and you're taking out healthy profit draws.

f you can show the IRS that you've paid most or all of your previous year's taxes within that same tax year, you will stand a very good chance of avoiding estimated tax payments entirely. And that means you can say goodbye to those late-payment penalties, too!

Here's something else to consider: There is no requirement to make an extra withholding payment monthly or quarterly. You can wait until the end of the year and make one big payment. So, as long as you budget for that end-of-year payment, you can have the use of that money throughout the year. And why shouldn't you? It's your money!

The rule here is whether the income is earned actively (you do or sell something) or passively (you receive rent from a property). If you're making active, or earned, income, then you'll pay more taxes than you should by operating through a sole proprietorship or through an LLC taxed as either a sole proprietorship or a partnership.

On the other hand, If you're receiving passive income from property rentals, then an LLC taxed as either a sole owner (Schedule E) or a partnership will save you tax dollars you'd otherwise spend if you operated this business through a C or an S Corporation.

These are fatal errors. An investor who chronically makes these mistakes will not long be an investor.

The common mistakes made by experienced investors are a bit more subtle, but are perhaps even more damaging because over time the costs are compounded until the entire portfolio is affected.

1. Failure to mind the balance sheet

There are four ways to make money in real estate: cash flow, appreciation, equity growth, and tax benefits. The operating statement shows just one of those--the cash flow. The balance sheet shows the other three.

Just as one adjusts rents and expenses to improve operating performance, the balance sheet should be managed to best utilize the assets. The key measure, contrary to popular belief, is not ROI (return on investment); it's ROE (return on equity). These decisions also affect the speed of wealth creation and tax efficiency.

That's three of the four or 75% of the sources of profit! If you don't understand your balance sheet, sit down with an accountant and get a lesson in the basics.

2. Bad deals and bad partners

It's a given that we are not going to be right every time. We're going to wind up with properties that don't perform as expected, or that the market direction moved against, or ones we just don't like. As Warren Buffet said, "the first rule of investing is to not lose." Learn to spot a losing position quickly and get out.

This is not to advocate abandoning an investment plan because of minor setbacks. Every project has them, and that's where perseverance is required. But a deal that goes sour on several fronts at once is a candidate for the "learning experience" pile. Don't fall in the trap of being "married" to a position. The support payments will swallow you whole.

The problem may not be the property, but the people. When problems arise in partnerships, especially those that started as friendships, things can get sticky and uncomfortable. Pain may be required, but misery is optional. If your partners are driving you crazy, or if you're all crazy, exercise a little civility and be willing to call it over.

If a good buy/sell arrangement was not included in your partnership agreement, make your own. One solution: You could write down a number that you will either pay for your partners' interest or accept for your interest in the assets.

That's the same way my mom made my brother and me divide the last pieces of our favorite pie; one cuts the slices and the other gets to choose his piece. It instantly ends any haggling or jockeying for position.

Close the deal quickly and move on. Life is too short.

3. Over-reaching

Swinging for the bleachers in high-risk, home-run-type deals that require more capital or expertise than you have is a sure recipe for disappointment, frustration, and can end in disaster. Before you start "thinking outside the box" make sure you know how things work inside the box.

It takes hard work and perseverance to achieve success in any field, and real estate is no different. In addition to property-specific plans, it's a good idea to also have a "big-picture" plan of your investments--where they need to take you, how, and when.

As you increase your knowledge and capacity, the big deals will come, and you'll know you're ready when you automatically focus on the pitfalls before the rewards.

4. "Dirt-rich, cash-poor"

This refers to the situation of having more land than cash to cover it and is a common outcome for an investor who accumulates a bunch of properties that have nothing in common but their owner.

If you have multiple properties and are using the gains from some to cover losses in others and losing the battle, it's time to get off the treadmill, despite the temptation to hang on.

Go through your portfolio in detail. (A checklist for reviewing owned assets is included in Dealmaker's Guide to Commercial Real Estate.) Identify improvements that you can make immediately and do them. Dump losers and anything that has needs that can't be funded in the next year.

Be merciless. Look at it like cutting diseased branches off of a tree: Serious cases may require aggressive pruning to save the core.

Then focus your energy and resources on creating maximum value in the remaining properties that fit your big-picture investment goals.

5. Not using local market knowledge

We all read the national media and trade magazines and get a sense of what the "market" is doing. But in reality, all real estate is local. There is no national real estate market.

There isn't a ticker at the bottom of the screen on CNBC that tells me what my buildings are worth. Their value is determined by local market conditions, for example: rental rates, occupancy levels, competitive space supply, demographic trends, etc.

Our existing investments provide a window on performance and needs of that market that is a competitive edge over other investors. But it is only an edge if it's used.

By systematically collecting just a few local demographic statistics (job growth, population growth and income) and property performance fundamentals, we can get ahead of the curve. We see trends coming rather than trying to catch the last one; we create our own opportunities and reduce our vulnerability to competitive projects.

* A person soliciting door to door for repair work. Though they may seem quite knowledgeable and appear friendly, this is not a common tactic of a professional contractor. Door to door soliciting leaves very little evidence to track down scammers.
* They claim to be working in your neighborhood and just happened to notice some sort of repair needed on your house, such as roofing, painting, or cracked portions in your driveway.
* They offer a special price or discount claiming they are in the area and will knock off a portion of the cost due to excess materials from other contracts.
* You may be told you must act right away to get this special discount pricing, and you may be asked to give them money up front before starting the work.
* They offer you a discount price if you allow them to use your home to advertise their work. This makes it sound as if they are doing you a favor for a favor.
* Some scammers offer a "free inspection" that always turns up a major repair job.

Doors. Make sure doors to the outside have properly working locks. At least one exit door must be accessible to the outside without the use of a key.
Ceilings, walls, and floors should have no large cracks, holes, peeling paint, leaks, or serious structural defects. Carpets should lay flat. (Note, we check for lead paint problems, but we can also help fix them.)
Windows and screens. If windows are accessible from the outside, they should have permanently installed working locks. They also need to be in good condition without cracks or leaks. (Hint: cracks and gaps can be fixed with silicone or weather stripping.) If screens are present, they should fit properly with no holes or tears. Please make sure each bedroom has at least one window that opens (sometimes they're painted shut) and that if iron bars are installed they have a "quick release" capability and take only one step to open (for example, with only one handle to lift). People need to be able to get out quickly if there is an emergency such as a fire.
Smoke detectors. Each floor should have its own working smoke detector. (Please make sure they have working batteries.)
All kitchen fixtures and appliances should be in good working condition, including: faucets (should run hot and cold without dripping or leaks), oven/stove (all knobs and burners should be present and working, and the stovetop free of grease), refrigerator (make sure it's clean, and that the lights turn on and the doors shut properly), dishwasher, garbage disposal, lights, drawers and cabinets.
Water heaters need to be working (and if placed in the garage, need to be placed on a platform 18 inches off the ground), have earthquake straps, and a properly installed pressure release valve (with a discharge line directed downward that reaches six to 24 inches from the ground).
Heating. A permanent (vs. portable) working heating system needs to be in place.
Electrical switches and outlets. Make sure that fuse boxes and wires are covered and that outlet cover plates are in place and not cracked.
Bathrooms should be clean and free of mildew. Faucets, toilets, and light fixtures must work. A ventilation fan or window that opens is required. Also, be sure to reconnect the vent if your previous tenant disconnected it because of the noise.
Exterior. Last but not least, we'll take a look outside to make sure there's a working mailbox, that the address is visible from the street, fences are in good condition, and that there isn't any chipped or peeling paint or graffiti.

Try craigslist for the city you live in, under freelance or gigs. You will find something.

I think you should check online for quotes and compare them. Then you can decide what you should charge.

Hello everyone. I am new here and I signed up because I have a lot of things to discuss and keep needing help now and then. Hope to see you guys around.

Asking the right question matters. Your question has answered so many other questions. I have found all my answers in this one lace. Thanks