The 16% solution and bye-bye trading

A

andrasnm

Anyone has looked into this ? Tax lien certificates are about as safe as your CD but on average you could yield 16% or more on your money.
Frankly I am more an more looking into real estate and other
"tangible" business propositions.
I love the markets as anyone else here but as my daughter is getting to be 1 yr. old it's time to look at their bottom line and
stop the BS.
I have read the "Millionaire next door" and the "Millionaire Mind"
and from the author whom I respect a great deal, two things
become painfully clear. Most millionaires in the US invest in
private business or real estate. Stock market is decidedly not
on the top of the list. Yes I know all the arguments for the historical effect on the markets from inflation.
Also from personal note - I have been involved in this for sometime. Most of my friends who are rich are rich NOT from
trading. One guy is very rich in Seattle - he is real estate investor
and owned his own business (sold it a while back). The other
won the lottery (I am not kidding). I made and lost a lot of money
it's time to say good-bye and try different things.
If you want to find oput about the 16% solution check it on
Amazon...
 
My definition includes liquidity. Yes the municipality will allow 14-20% "interest" (its really a late payment penalty) to accrue on the late taxes owed, but you still have to get someone to pay it in order to receive it, or else force a forclosure...neither of which will happen overnight nor guarantee the return.


THis is not to say I think they do not represent a viable use of capital, ( I looked into them a few years back) but it is not as easy as the seminar presenters and infomercials would have you believe. Not unlike all the trading seminars and systems that are pushed for a pretty penny promising great returns.

Finally, bear in mind that your desire to get into real estate ventures could be analogous to everyone wanting to become a daytrader....just when the nasdaq was hitting 5000. 1800 square foot brick bungalos built in 1940 selling in metro Chicago (yeah like I want to live there) for ......$500,000!!!!! Can you say "Bubble"?
 
Andrasnm

Trading is not about making money. That is not why you do it. Trading is jumping into the ring with the best in the world, no holds barred, and surviving. Nothing compares to it. Of course, the money's kind of nice too.
 
what I will do....just I know that I will never be a full time daytrader again.
You points are valid, and like I never tried a trading seminar
I will not try a RE seminar/mentoring or guru. I may become the
guru however :D
 
There's certainly nothing wrong with at least diversifying. I'm looking into some small time property rehab. Buying houses from estates (dead folks adult kids who just want to cash out) and doing some minor fix up if the neighborhood property values will support my rehab and markup cost recovery. These take a bit of research since often the best deals are from properties with taxes due that aren't yet auctionable by the city.

One of my thoughts is that a real estate based business is easier to pass on than a trading business. I'm a long way from that but I think I could walk away from the market for months without excess withdrawl pains and diversification seems prudent.
 
andrasnm,

I have been into RealEstateInvesting ....for a LongTime...I have 40 (+or-) single family houses at a time.

I don't have time to go into an in depth discussion today, but if you have alot of questions...please feel free to post them and I will answer them tomorrow, while I am waiting for calls on the house I have advertised on Sunday.


....as always,


GoodInvesting, Rocky
 
Thanks for the offer. Aside from tax liens (and tax deeds - I am
in CA) I am considering lease puchase options as I wish to buy
into some prime RE in CA (Sacramento) but I think the bottom is
not yet reached. I am also looking into foreclosures....
P.S. what state are you in ?????
-Andras
 
"We're all anonymous here. For our amusement, can you toss out a figure?"

I think he only got the 7 mill base in CA, but he won b4 we become friends so maybe he got more. He is one of the few
lotto winner who did not piss it away but that's only because
of his wife. First after he won he bot a Ferrari, crashed it, drank
heavily - the usual stuff :)
 
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