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Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds by Chip Cummings

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Risk Elimination

The whole basis of Zero Risk Real Estate is to act smartly and intelligently to eliminate as much risk as realistically possible. While there is certainly an element of risk in any real estate transaction, there is also risk in walking across the street. But as long as you look both ways and don’t jump out into traffic, you’ll be just fine and you’ve eliminated all practical risk involved. Let’s take a look at the most common forms of risk that you’ll encounter in a tax sale investment, and how you should react.

Market Risk

Here we are talking about the overall economic picture. Market risk refers to the possibility that an investment portfolio will lose value due to changes in typical market risk variables, such as interest rates and stock prices. While you may find property easier to sell in a good economy, there is little other effect the market can have on your investment if you plan correctly, since you are not dealing with retail real estate pricing. Unlike the above mentioned market variables, tax lien investments remain steady despite the economy. This is because the interest rates on tax liens are legally mandated and not susceptible to the fluctuations of the market, and so your rate of return is fixed or it could go up. The stock market has no effect. The bond market has no effect. The cost of living, inflation, Consumer Price Index, Dow Jones, Justin Bieber, and Donald Duck have no effect. Therefore, when it comes to the economic market, your investment ...

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