Then as the properties move up the chain you have another level of investment and that creates a return on investment for this layer of the onion. then you keep moving out layers of the onion to the ultimate retail buyer whether it be local off shore or CA based. and they pay top dollar I think we all know that's the case...

With real estate for me the risks are measured, with stock and my lack of comfort with the market I feel like I'm just gambling.

Gambling is just one item on a long list of fun things to do in one place, just like a cruise ship.

Tax deed sales involve risk and a little bit of an informed gamble.

(Of course, people do it anyway and gamble that the IRS won't catch up to them or rule against them.)

Yes, I am on the cautious side, but am I missing something or is this strategy just the replacement for no money down and gamble the wad?

I live on the gulf of Mexico, I'm talking offshore fishing!

Obviously it is not a game and you do not want to gamble, but if you know you want the property and are prepared to close quickly with cash, then go as BIG as you need to on the terms in your contract without offering a price that is so high you eat into your profit margin.

A long time ago, in a smoked filled card room off a dark alley on a back street in Vegas, a wise man said to me, "If you've been playing poker for half an hour and you still don't know who the patsy is at the table, you should stop gambling and go look in the mirror."

Many of the TCs seem to be offshore, which can be a good thing, but the problem is they have to coordinate with a local escrow and title company.