Know This Information Before Buying Tax Liens by Dustin Hahn

In order to get started, we must first understand what tax liens are in order to succeed in this type of investment. Tax lien properties result from delinquent real estates of homeowners who do not pay their taxes religiously. The government especially in the county level can either sell these properties as a tax deed to interested investors. They can also sell it to people who would pay for the delinquent taxes of the homeowner. This gives a chance for the homeowner to pay his dues as well as paying the investor the interests and penalties that normally goes to the taxing authority.

The interest collected from delinquent properties would depend on the state laws and can range anywhere from eight percent to thirty-six percent annually. Furthermore, the interest rate is fully guaranteed by the government. Also, your investment is guaranteed by the real estate which makes it secured.

You must conduct some serious due diligence on the property you're interested before purchasing the tax lien certificate on it. Though, a title search is not quite needed in a tax lien investment because in most states tax liens are in the top position which comes before mortgage. Also, doing a title search on all the property you are intending to bid would cost your profits. However, you need to check the market value of the property just to make sure that it is truly worth more than the tax lien you're paying. You also need to personally see the property in order to assess its value as well as the tax assessment data it possess. Its location is also important just for you to see if the site has potentials for progress.

It is recommended for investors to put their money on residential lots because there are so many homes out there facing foreclosure. You can potentially own a home or help out the property owner get back his property by paying the back taxes for him or just wait for the redemption period to end and earn profits in return. Commercial properties are also alright but there are so many things you need to check out for this type of real estate. You need to make sure too that it is zoned correctly for what it is really intended. Check out for any environmental issues also on the state website in order to avoid problems that may hamper your future profits.

There are various rules and procedures for each US state which is why you also need to research more information preferably found in the law books or consult a real estate expert to help out with the details. Also, you can contact and ask the country treasurer or tax collector for information regarding the matter in order not be left out of the chase.
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About the Author

Dustin Hahn is the top tax liens and deed consultant today that conducts trainings and mentoring to investors who want to learn the secrets behind real estate tax sales investments. He is the owner of Tax Sales Secrets, the best tax liens and deed investment company. He is the author of Real Estates Best Kept Secret, an e-book which is available at http://www.taxsalessecrets.com