Foreclosures
Although there is less liquidity with real estate, some folks prefer what they can see, touch and feel. As in most areas of life decisions are made with facts. They are confirmed with emotion. One way to have tangible property earning residual income is through foreclosures.
Foreclosure is simply what happens when you don’t pay your bills on your mortgage. The lenders want their money and they take actions to get it, often by selling the house.
My number one recommendation in this area is to THINK, RESEARCH AND BE KNOWLEDGEABLE before you act! Go to seminars. Read books. Visit web sites. Attend auctions. Talk to professionals. Join investment clubs. Become as knowledgeable as possible before you decide to act!
Most of the homework you need to do is at your local level. What are the tenant-landlord laws? What rules apply for late payment and eviction? Are there rent controls? Look up on the Internet to get a hold of local landlord and real estate specialty interest groups. Foreclosure law is formulated at the state level. Since each state has unique laws and time lines, you must read up and ask! Some states have mortgages. Some have deeds of trust.