April 17, 2008
Fixer Upper Tax Lien Properties
For do-it-yourselfers the approach of buying tax lien properties in need of repair (which invariably most of them are) is not only enjoyable but may be quite profitable. For those not inclined to rehabilitation of real estate, several limited partnerships attempt to use this technique to increase the stream of income and value of the property for investors.
The risks here, particularly for the do-it-yourselfer, lie primarily in underestimating the amount of rehabilitation required and getting into financial difficulty. Significant potential for profit still exists in real estate. Changing the rules may not necessarily mean laying a new game. It may just become a matter of "back to basics."
