You will notice that even your reply you answered you own question to the mortgage liens.Quote [ Pursuant to Section 3712 of the Revenue and Taxation Code, the tax deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except: ] end quotefree of all encumbrances of any kind before the sale, except: What follows, the exceptions, do not list a mortgage lien as an exception so they are cancelled as part of the sale.Basically what is not cancelled is any lien from any governmental taxing authority.As far as the IRS redeeming a property, this would only be done when their lein is considered in a junior position to the other liens.

I've been a homeowner for 14 years and in 2006, I purchased my first rental property generating a positive cashflow of $230.00 a month.

While this last practice may seem overly challenging or even burdensome, it is a sales technique that will always be available to the motivated entrepreneur and that has withstood the test of time while getting many new and under funded business ventures on their feet.Your appearance when meeting the prospect plays an important role in creating the right impression and achieving a positive influence, but not in the way that many people think.

Property #1Purchase Price $149,500 (Nov 2004)PITI - $1725 (includes $350 for HELOC, $250 for escrow shortage pymt (12months left), $125 Association Dues)Rent Received: $1195Net - -$530 (ouchhhh)And this does not even take operating expenses into acct (double ouuchhhh)...and a very high vacancy rate in Property #1...Positives: This areas has NOT seen a decrease in prices at all.

I'm asking if anyone here makes loans that are Deeds of Trust, in other words they are written up that way...as Deeds of Trust....recorded at the county as such.In my mind when you are loaning private money in small amounts....the only way you can be protected from being in the second position (and ultimately thrown out if foreclosure occurs) to the 1st mortgage holder is to write it up as a Deed of Trust.

Very well said, Jason, You are well on your way with that positive attitude.

How could there ever be a positive cash flow on rentals?

I am finally going have a positive cash flow this month and I am trying to save up for my second home with my brother.

In Australia, the lenders take the position that it's not possible to buy a genuine bargain, and the valuation for mortgage purposes is always taken to be "the lesser of market value and purchase price", meaning that this would be impossible, and on a $70K purchase one could only borrow $49K.But lots of things are possible in your market that aren't in ours - you're generally much less regulated - so I thought this was a question worth asking!

San Jose is a different beast for investing, and I feel my time will be better focused in easier areas that will generate positive cash flow.So it would be great to hear general stories of how you built your team, but the icing on the cake for me will be to hear about people who started with similar goals.Also, I realize each person on the team is important, but who do you consider most critical in getting your deals done?