Saturday, September 15, 2018

Money Makers: Tax Liens and Tax Deeds

The share and "gig" economy has whet America's appetite for business as platforms like Airbnb, Uber, and Etsy make it easy for users to experiment with risk-free entrepreneurial endeavors. But CEO Marcos Jacober took this trend to the next level with a unique and creative business model that lowers the user's financial risk even further!

Jacober created a business formula that uses the Airbnb platform in combination with a highly profitable yet fairly obscure real estate investment strategy. Using the strategy of tax liens and tax deeds, entrepreneurs are able to purchase low cost investment properties and immediately turn them over for rent using Airbnb.

How did you get the idea for this business model?
Working my bottom dollar off made for a very tired me. I literally worked 92 hours a week between my two jobs before I landed my first big opportunity and become part-owner at Virgil’s CafĂ©, an Italian Restaurant. Thirteen months later, starting to get burnt out, I decided to move my young family to Florida and bought my cousin’s ex-husband’s FedEx route. Thirty days later, we were happy residents of the Sunshine State.

The FedEx route wasn’t my only source of income. I also started to invest in real estate, buying up properties for super cheap, fixing them up, and renting them out. This is what everyone seemed to be doing. I made good money at it, until… In 2008, the real estate bubble burst. I’m sure many of you remember that. I lost all of my properties (I had 17 of them by that time) but the one I could salvage in Houston, Texas. 

With my credit ruined, my money gone, no way to re-invest in real estate, my early retirement stolen, and my life seemingly ruined, I had nothing but my family and God, but that was enough.  We drug on. 

That year, 2008 or early 2009 (when you get old as I am, you’ll understand the struggle), I found a book on real estate investing that a friend had given me 5 years earlier, “The 16% Solution”. That book changed my life, showing me things I hadn’t known before, secrets many people don’t know but are there for the taking if you know where to look. Now, because of the ideas that book put in my mind, I have an international business. I help to better people’s lives, teaching students around the world how to invest in tax liens and tax deeds. I give people the opportunity to fix their finances and build their wealth. I give people the tools to build their life. I build people,

Why is it good for disadvantaged entrepreneurs?
You don’t have to have much to start out when it comes to this type of investing. I’m not going to lie. Just any self-run business, it’s hard work and takes a lot of hours to get it up and running, but it’s so worth it. This business model really does work, and it’s not hard to follow. All you’ve got to do is learn it and do it.

Many of my students who have started with absolutely nothing have gone on to make more than $100,000! I, in personally making my 350 plus investments, have spent as low as $31.28 on properties, and I’ve invested as low as $6,342.79 on properties that have brought me a profit of upward of a million dollars! 

What do you see as the future of the gig economy?
Firstly, because some of you may not have a great idea of what the gig economy is, I’ll explain. It’s a “workplace” where temporary, short-term work engagements are available for the taking. Some examples would be, Uber, and Airbnb.

I personally think that some of the gig economy (I’ll explain in a bit), especially Airbnb, has a great future. In fact, by 2020, they’re projecting that the company will net over $3 billion annually. That’s an increase in similar profits of 3,400% up from 2016!

I am what I’d call myself an Airbnb superhost. I have achieved such great success in the business that I’ve been able to simply get my Airbnb business to where it can basically run itself! The techniques I use can be used by anyone, and I make them available through my business.
The American economy is really migrating toward gig economy. Intuit did a study that made the prediction that 40% of the US workforce would work as independent contractors through the gig economy by 2020. Part of the reason for this is that we have hit the digital age. With so many people so attached to their cell phones, it is so much easier for them to do their work from it since they can do it anywhere and at any time… just hopefully not while they’re sitting on the commode. They can even do jobs for folks in China while sitting in their recliner in Florida!
There was a lawsuit in the California Supreme Court on April 30, 2018, however, that gives companies like Uber the challenge of fighting for the right to classify the people who choose to work for them as independent contractors, as they have the right to file with the California Department of Revenue for consideration for employee status. The laws have been changed making it much harder for the “employer” to avoid being the employer. If the worker’s employee-status is approved, the California-based company they are working for (for the sake of example here, Uber) would have to pay the (then) employee minimum wage and overtime hours, which would raise Uber’s rates since an employee cannot be fired without cause, and most likely lower their consumer base.

Therefore, I’m not so sure about the future of some of the parts of the gig economy, but I’m optimistic about others, like Airbnb. If the company can pass the “ABC” Factor Test, they’ll be fine, and they’ll succeed in the gig economy. To pass the test, the company will have to prove that they enforce the following rules upon themselves:

  • The California-based company cannot enforce direction or control over the contracted worker when it comes to the exacts of the work to be done. Even a small amount of control being enforced will cause the State’s Revenue Department to classify the company’s contractor as an employee. Most gig-based economy workplaces are stationed in California.
  • A company cannot hire someone to do a job that the company is created to do. For instance, a florist cannot hire a contracted worker to pick fresh flowers for special orders and expect California to classify them as self-employed.
  • If the company wants to avoid having their previously established independent contractors classified as employees, they must be sure their contractors validate themselves as such by investing in their own private company. For instance, the contractor should purchase their own resources, promote their own business, and have an established business doing the same kind of work for other consumers.

How can entrepreneurs engage in low-risk or risk-free ventures?-
The first step to engaging in low-risk or risk-free ventures is to do your homework and choose which investment you want to get into. Any investment journey carries its risks with it, but are there opportunities that carry less risk than others? Yes! 

There are many types of investment options to explore, but my personal favorite is real estate—especially investments into Tax Deeds and Tax Liens, which is the least risky real-estate investment. I would never say that Tax Lien and Tax Deed investing is no-risk, but I would say that it is low-risk. One reason is that the economy doesn’t affect these two strategies. The stock market doesn’t affect them. How much Rosie O’Donnell ate today doesn’t affect it. The state laws regulate this type of investing. You will always, always, always walk away with either the property itself or, at least, a rich percentage of the taxes due. 

The next step to any investment strategy is always to get the information you need on the subject. Educating yourself is a good start, but self-education can only go so far. It’s a good idea to find a mentor, which can also only go so far, or a company that can give you the education you need. 

For more information on Tax Deed and Tax Lien investing, pop on over and see me at We have a full course on it. The training course also includes a free, full training course, called “AirbTheBo$$”, on Airbnb investing, which is also a good opportunity in investing that I really like.

Brazilian immigrant, Marcos Jacober is an investor, author, international speaker, and teacher. He moved to the US in 1998 with only a dream and $100 in his pocket. He worked a number of blue-collar jobs before saving enough to invest in real estate...but he lost everything in the crash on 2008.  After learning about Tax Liens and Tax Deeds, he was able to finalize hundreds of property deals. Today, he is an authority in the real estate business, with more than 500 transactions in his portfolio. 
Father of two beautiful children, Jacober has helped thousands of individuals from different countries start their real estate investment career here in the US. His new book Eat This Mr. President was released in 2018.

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