I often see infomercials out there that claim to allow people to invest in tax liens or tax deeds without using their own money or having any effects on their personal credit. Although both are possible, the truth of the matter is that investing does require something to invest, so you will need some money.
There are a lot of options for getting started. If you have a personal savings account or assets that are readily liquid, then you are good to go. If not, you may want to consider a variety of options such as taking out a home equity loan, partnering up with a friend or family member, open a credit line, using your 401k money, credit cards, or any other option you can think that will generate some cash for you.
What you have to keep in mind through all of this is that you are getting into investing to make money, so you want to use discretionary income that won't harm you or your family in the short term. Also, keep in mind that some of the aforementioned options might lead to penalties or high interest rates that could defeat the purposes of either investing in tax liens or tax deeds.
The short story is that, just like the old adage, "Nothing in life is free." However, tax lien and deed investing can be a way to generate some positive cashflow or some nice interest rates for you, but you have to be smart from the beginning. If you don't have the money or can't get it, work hard to save some, and then you will be in the position to begin.
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