All Forum Posts by: Dennis Weber

@Ned Carey

Oh no, I've never bid in MD.  I'm no rocket scientist. Indiana is not that difficult. 10% and 15% penalty on minimum bid and 5% per annum on overbid. I was just stressing the point where the math in some states works against in the overbid (I'm no mathematician either.). 

@Kurtis Green

@Ned Carey gives a very good example why not to go too high on your overbid. Wish he'd told me that before my first auction. You could have a lot of money tied up for little gain. But, hey, 6.1% beats the market. 

@Mark Senecal

These guys are giving you great advice. But they're younger than us and didn't mention this. The Roth Factor. I moved a considerable amount from a work account to checkbook sdira. Invested almost all of it in tax liens and notes.  All these investment did unusually well. Great!  No cap gain taxes!  Oops!  Now that I want to draw money out I'll have to pay income tax. Greater expense than cap gains. 

Don't know if I can convert before investing it again. But needed to make you aware before deciding on your plan. 

@Jon Finister

Yes, that's right. Lien or deed, tax sales are county functions. 

I also recommend reading zero risk real estate (Ned Carey hates that title). It'll give you a good introduction and some tools from his website. 

I'm partial to Indiana, Marion Co in particular, because of shorter redemption period, 10-15% penalty, and its run well. But no sales online yet. Arizona seems to be a favorite and closer to you. 

Did you have a specific question?

Don't be so hard on yourself, Marcus.  LOL  I never said do nothing to make 11%.  Do something else to make 15% and skyward and still be almost passive.  For instance, I bought tax liens last October. One redeemed after 1 month for a gain of 10%.  Hard loaned that same money for 3 months for a gain of 4%.  Annualize that.  There is more math involved here but you see where your 11% doesn't impress me?  Don't be naive though and think that 12% will hold up in the next storm.  You average will go down when you average in the down years.  And history shows there will be.

@sean tracey There are many BP members that own note companies. It seems they like 13% IRR to sell. They offer a warranty that the note will remain performing and will get it re-performing or return your investment.

Use the rule of 72.  At 6% per annum, you'll double your money every 12 years.  So your $50k will be $200k in 24 years.  At 10%, you'll double it every 7.2 years. it'll be somewhere around $400k in roughly 21 years. Enough to retire early on?  At 13%, you get a double every 5.6 years.  See where I'm going?  Also, with notes you purchase with a 20-30 % discount for the kicker when paid off.

Hi Michelle @Michelle T.

Some thoughts. You could JV with her on fix and flips. Hard money lending. Or notes.

@Sean Tracey  I admire a young person researching and thinking of their future as much as you apparently have. There are people of my generation that have always "invested" as Poor Dad did only to reach retirement in successful careers with not much to show for it. * I highly recommend reading the Rich Dad series before making major investments. I was sorta one of those people but I did get what was considered decent returns in the market. Not spectacular as I had hoped. But I invested in the market instead of buying that Lamborghini. 

With that said, the stock market is for losers. You have no control over your money. Obviously, if your company is matching funds in your 401k, maximize it! Free money! Have you ever considered note investing?  Performing notes almost guarantee 13% returns. Plus they are collateralized making them almost risk free. 

At my age, my heart can't take another downturn. 

foreclosehouston.com.  Pretty much updated to the minute. Subscription based, but believe me, you'll want it.  Reasonable rates.