43. Excess Proceeds – this investment strategy usually involves buying a property which is about to be foreclosed upon by the loan company or county treasurer.
The investor is counting on the property selling more for the debt or tax liability and thus being able to receive the excess proceeds of the sale.
If this works out, the loan company or county treasurer is almost functioning like a real estate broker selling the property for them — it’s an easy sale without required disclosures or any involvement by the seller.
However, if the property does not sell for more than the debt or the tax liability, the investor ends up walking away with nothing.
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