Funding

for Your
Tax Liens
 Tax Lien Wealth Builders
“Funding Resource Report”

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The real estate industry is one of the most exciting industries in the United States. Smart
investment decisions and knowing how to improve property to boost its value can generate
income for years to come. It’s certainly not for the faint or weak at heart. But the good news is
that with the right education, you can create a real estate investment business that exceeds
expectations.

If you think you don’t have enough money to invest in real estate, think again. You don’t need a
lot of cash to create deals. You just need to know where to find funding. Traditional loans from
banks and mortgage lenders aren’t your only option. You have access to alternative funding—if
you only know where to look.

Once you know where to look, funding is always available. Once you find the right deal, the
funding seems to fall in place.

Here are a few alternative funding options to help you strike a deal that meets or exceeds your
needs.

Traditional Funding
The traditional course that some people take when buying real estate is a funding source like a
bank or mortgage broker. These sources usually require a sizable down payment and a strong
credit score. You can also choose government funding through FHA (Federal Housing
Administration) or VA (Veteran’s Administration) first-time buyer loans which offer less
restrictive down payment requirements and interest rates.

Alternative Funding
You have other options for financing your real estate investments, especially if you’re short on
cash or don’t have the greatest credit score. There
1 are lenders out there who are more interested
in your business plan (e.g., how you plan to refurbish the property and sell it for a profit).

Fortune Magazine recently estimated the global real estate industry is worth around $217
But how can you find a legitimate alternative funding source?

Verified funding sources

Learning how to properly fund your real estate investing opportunities pays big dividends that
individuals chasing traditional sources can’t realize, usually in terms of quicker funding to
facilitate fast deals. Real estate investing is a numbers game that benefits those who can move
the fastest to purchase properties offering the biggest return on investment. But not every
investor can access traditional funding sources (and traditional sources move slowly), so it makes
sense to cultivate alternative sources to fund your investments. Alternative sources rarely require
a spotless credit score or tons of liquid cash to make a deal. Here are a few to help you get the
funding your need to make profitable real estate deals in the shortest time possible to maximize
your return on investment.

• Hard money lending. For many, this term sounds scary, but it’s a quick source of
funding to help you get the jump on your competitors. Hard money lenders look at the
property and the deal you’re structuring, while traditional lenders look at you personally
to determine if you’ll pay back the loan on time. Those with access to hard money
lenders can purchase properties faster than others, resulting in more "wins" when bidding
on great properties. While traditional lenders like banks take weeks and sometimes
months to approve a loan and disburse funds, a hard money lender shaves this process
down to days and sometimes even hours, depending on your relationship with the lender.
Some hard money lenders will lend you the purchase price of the property and part or all
of the rehab process, letting you move quickly to buy and flip properties.
• Self-directed IRAs. A typical IRA or 401(k) account can only invest in stocks, bonds,
mutual funds, and Certificates of Deposit. While you have some control over how and
where your funds are invested, you’re still limited. A self-directed IRA lets you invest in
all the traditional sources, but opens up a whole new world of investment opportunities,
like real estate. You can even become a hard money lender to other real estate investors.
You can legally roll over your regular IRA or 401(k) into a self-directed IRA and start
investing in real estate deals that make the most sense and offer the biggest return on
investment. This is a simplistic view of self-directed IRAs. Your best bet is to connect
with a Registered Investment Advisor to set up the right type of IRA.
• Tax liens. You can actually invest in real estate for as little as $50 or less when you find
the right tax liens to invest in. A tax lien is a governmental restriction against a property
when the property owner hasn’t paid their real estate taxes on time. Government entities
need funding to provide services like fire, police, and other public services. When
homeowners don’t pay their real estate taxes on time, governments must find another way
to get that money to pay for services. So they sell tax liens, where an investor can
purchase the lien for the price of property taxes by which the homeowners are delinquent.

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 Then the property owner has a certain period of time to either pay their back taxes plus a
penalty or forfeit their property to the owner of the tax lien. As a tax lien investor, the
government guarantees you your original purchase price plus the penalty (which is often
around 18%) within a specified period of time. If the property owner doesn’t pay within
that period, you take ownership of the property involved.
• Wholesaling or reverse wholesaling. Wholesaling properties is a different source of
investing, one that doesn’t require you to "touch" the property such as rehabbing or fixing
and flipping. Instead, you enter into a contract with the seller of the property and then
find a buyer who purchases that contract from you for profit on your part. An example
would be if you found a promising property you could easily rehab and sell for a 20%
profit. You make an offer of $100,000 on the property, the seller accepts your offer, then
you legally sell that contract to a real estate investor for $110,000 a 10% profit. The
property owner still gets the original contract price of $100,000, you clear $10,000 on the
deal, and your investor gets a property that’s perfect for fixing and flipping. Not only
does your investor avoid the hard work of researching and chasing properties, but he or
she can achieve a 10% profit after rehab, and you get an easy 10% profit without ever
having to look at, "touch," or put money down on the property. The drawback is you
usually only have days to find a buyer for the contract. Reverse wholesaling, on the other
hand, means you find out what real estate investors want up front and then find the
perfect properties for them. You have a guaranteed buyer to whom you can "wholesale"
the property.

Where to find funding

One of the easiest and least expense ways to get into real estate investing is to focus your time
and effort on education first. When you learn from experts who have "been there, done that," you
reduce your learning curve, allowing you to launch your business faster and with less risk.
There’s no reason to recreate the wheel when there are qualified educators who have learned the
ropes of real estate investing and can help you cut your time to launch your business in half or
more.

While real estate investing is risky and can lead to either success or loss, you better your odds
when you learn from experts who share their tried-and-true efforts. It’s better and less costly to
learn from others’ mistakes than to learn from your own.

A perfect example of a solid education that saves you considerable time, effort, and money is
Real House Flippers Academy. These experts don't stop at investing, however. They offer
valuable consulting experience to help you invest and reach new heights and achieve your goals.
From learning how to find the right properties to invest in to finding capital to fund your
investing, Real House Flippers Academy has the expertise to help you invest and reach amazing
results.

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Their experts can help you find financing for your goals and create a business that succeeds
beyond your dreams. Many recommend Real House Flippers Academy because they don’t
require a percentage of your real estate business to help you fund your growth. Don’t give up
ownership to finance your real estate business. Real House Flippers Academy offers funding and
expert consulting advice to help you grow your business from the ground up.

Disclaimer

© 2021 by Tax Lien Wealth Builders/SPJ Mkt All rights reserved. Reproduction
or translation of any part of this work beyond that permitted by Section 107 or
108 of the 1976 United States Copyright Act without the per-mission of the
copyright owner is unlawful. Text message rates apply if you text to get
information. Investing involves the risk of loss as well as the possibility of profit.
All investments involve risk, and all investment decisions of an individual remain
the responsibility of the individual. Tax Lien and Real Estate investing involves
risk and is not suitable for all investors. Past performance and recommendations
are not a guarantee of future results. No statement in this book should be
construed as a recommendation to buy or sell particular real estate and/or a
security. Neither The Tax Lien Wealth Builders/SPJ Mkt. (“company”) nor Scott
Bell (“Bell”) have made any guarantees that the strategies outlined in this book
will be profitable for the individual investor and are not liable for any potential
trading losses related to these strategies. Bell is a professional investor, and his
results are not typical of the average individual. Background, education, and
experience will affect an individual’s overall experience. Any examples shared in
this book are merely illustrative and not guarantees of a return on investments.

Readers’ results may vary. None of the material within this publication shall be
construed as any kind of investment advice.
The reader of this book should not place undue reliance on forward-looking
statements contained in this book. Such statements are based on particular
assumptions and expectations involving various risks and uncertainties. These
uncertainties could cause results that materi-ally differ from those set forth herein.
Nothing in this book constitutes a solicitation or an invitation to buy or sell real
estate mentioned here-in. Even though every precaution has been taken in the
preparation of this publication, the publisher and author do not assume any
liability for errors and/or omissions. This book is published without warranty or
guarantee of any kind, either expressed or implied.

Tax Lien Wealth Builders/SPJ Mkt and/or Bell are not liable for any damages,
either directly or indirectly, arising from the use and/or misuse of this book.
Readers agree to release and hold harmless Tax Lien Wealth Builders/SPJ Mkt
and Bell, their members, employees, agents, representatives, affiliates,
subsidiaries, successors, and assigns (collectively “agents”) from and against any
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(including, without limitation, court costs and attorney’s fees—“losses”) asserted
against, resulting from, imposed upon, or incurred by any of the agents as a result
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educational purposes only. It is sold with the understanding that Tax Lien Wealth
Builders/SPJ Mkt and/or Bell are not engaged in rendering legal, accounting, or
other professional services.

Readers should consult with a competent professional advisor regarding any legal
or tax questions. Hypothetical performance results have many inherent
limitations, some of which are described below. No representation is being made
that any account will or is likely to achieve profits or losses similar to those
shown. In fact, there are frequently sharp differences between hypothetical
performance results and the actual results subsequently achieved by any particular
investing program.

One of the limitations of hypothetical performance results is that they are

generally prepared with the benefit of hindsight. In addition, hypo-thetical
investing does not involve financial risk, and no hypothetical investing record can
completely account for the impact of financial risk in actual investing.

For example, the ability to withstand losses or adhere to a particular investing

program in spite of losses are material points that can also adversely affect actual
investing results. There are numerous other fac-tors related to the real estate
market in general or to the implementa-tion of any specific investing program that
cannot be fully accounted for in the preparation of hypothetical performance.