Tax Lien Investing: What Happens at a Tax Sale?

What happens at the tax sale depends on what state you attend a sale in, and on whether it is a tax lien sale or a tax deed sale. Tax lien sales can be very different from state to state or even from county to county within a state. Tax deed sales are pretty much the same around the country.

At most tax deed sales the properties are read off by the auctioneer in the order that they are listed and the price of the property is bid up. The exception to this is in counties that have online deed sales, like some counties in California and Florida. In order to bid at an online auction, you have to register online and put up a deposit. The properties are usually listed in batches and a time from is given for each batch. You put bids in on the properties that you want to bid on, but you don't know who else is bidding and what the other bids are. You may not even know if you are the successful bidder on a property until after the sale.

Tax lien sales can differ greatly from state to state. In some states the interest rate is bid down. This happens in Florida, Arizona, (two of the most popular tax lien states) Illinois, and in Nassau County, NY. In other states the interest rate is kept constant and the price of the lien is bid up. The amount bid up from the amount due is referred to as "over-bid" or "premium," and each state handles it a little differently. In some states you receive interest on the premium paid for tax liens (Alabama and Indiana are two state that give you interest on your premium), and in other states you do not (West Virginia is one of these states). Some states do not pay interest on the premium amount and do not return the premium to the investor should the lien redeem (Colorado and Vermont are two of these states). New Jersey is the only state where the interest rate can be bid down to zero and then premium is bid. You don't receive any interest on the premium paid, but you do receive your premium back if the lien is redeemed within five years.

In some states, something entirely different than the interest rate or the premium is bid. In these states, what is bid down is the percent ownership interest in the property should the lien be foreclosed. The tax lien certificate is awarded to the bidder willing to accept the lowest percent ownership interest in the property. As you can imagine, this makes for some sticky situations should you have to foreclose on a lien and is not the ideal situation for the investor. Tax sales are conducted in this way in Rhode Island, Nebraska, Louisiana, and Iowa.

Some states will use a random selection or round robin process to award tax lien certificates at the tax sale. With the random selection process, the tax collector or auctioneer randomly selects bidders, usually by bidder number for each parcel as it is read out at the sale. With the round robin procedure, the tax collector will go around the room, offering the next parcel on the list to the next bidder in line. The downfall to both of these procedures is that you cannot pick which properties you want to bid on and only do your due diligence on those properties. Here you do not know which properties will be offered to you and you can only accept or decline the ones that are offered to you. The random selection process is used in Wyoming and in Oklahoma. The round robin procedure is used in some counties in Colorado for liens under a certain amount (the amount differs by county).

One tax lien state does something entirely different than any other, and that is the Commonwealth of Kentucky. In Kentucky, nothing is bid, or randomly selected. There is no auction. They accept bids for the amount due plus costs by mail, e-mail, fax, and in person, and the first bid to be received is awarded the tax lien. Although you can mail or fax your bid in, you have to be present at the "sale" to be awarded the tax lien certificate.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ  

Joanne Musa works with people who want to build an extremely profitable portfolio of tax lien certificates or tax deeds FAST. If you need help deciding what state to invest in or getting ready to invest in tax lien certificates or tax deeds, you may want to take advantage of her JetStart Coaching Call. You can find out more about this call and see if it’s something that you’re ready for by filling out the form at http://www.yourtaxlieninvestingcoach.com/ Or, You can get more information about tax lien investing at http://www.taxlienlady.com

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Buying Tax Liens Online

                                                            
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What are Tax Liens on Real Estate?

Taxes are a headache that everyone has to deal with and it is certainly depressing when a tax lien is put on your property. On the other side of the picture, tax liens of Real Estate present a good potential investment. What are tax liens on Real Estate?

The definition of a lien is that it is a claim against an item by another party that uses the claim as security against a loan or other obligation. The lien usually has precedence when an item is sold and can have implications in the matter of ownership. Tax liens are put on Real Estate when the owners of the property are delinquent in the payment of personal property taxes.

What the tax lien really means is that the holder of the lien must be paid from the proceeds of a sale of the property before ownership can be transferred to someone else. In many areas Tax liens are placed on Real Estate by the taxing municipality. These liens are often what are called First Liens because they take precedence over any other obligations against the property. The liens will then be sold at auction as tax lien certificates.

The tax lien certificates will require the property owner to either pay a set yield to release the lien or, if they have failed to pay the yield within an established amount of time, ownership of the property passes to the lien holder. This is appears to be an ideal win/win situation for the investor who purchases the tax lien. He will either receive a guaranteed return on his investment or a Real Estate property at an extremely discounted price.

It is impossible to give exact figures on the yield or the amount of time that the lien must be held before the possibility of default. So, the above information sounds a bit vague as to specifics. This is because the yield and the time elements are set by the individual municipality and vary widely from area to area. In this respect, the Tax Lien Certificate method of Real Estate investment does not differ from any other type of investment. A little bit of research is necessary to insure the best chance of success.

In the case of Tax Liens, the wide variety of different conditions and procedures that can exist from location to location tends to make the practice of purchasing them a local opportunity. This is not always the case and the local variations can be overcome by an organized investor who puts in the time and legwork to determine the exact conditions in the locality where he is considering the purchase of a Tax Lien.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ  

Learn how to use a self-directed Roth IRA to invest in real estate at UFCAmerica.com.

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Don't Buy Tax Lien Certificates Until You Read This!

 
Some real estate gurus make tax lien investing sound like it's a sure thing. That you're guaranteed to make huge interest rates and that's it's "government guaranteed." Unfortunately for You, they leave out a few facts and are stretching the truth quite a bit.

First you have to understand that tax sales are auctions and in most state those extremely high interest rates are bid down to extremely low rates. Why would investors do that? It's simple, sometimes there are other penalties that they will get should the lien redeem. In New Jersey for instance the penalty is between 2-6% depending on the amount of the lien. In Florida there is a penalty of 5%. Also once you own the lien, you can pay the subsequent taxes and get the maximum interest on that.

Secondly, you must understand that there is no guarantee that you will get paid on your lien. Of course if you don't get paid, you can foreclose once the redemption period is over. But no one guarantees that you will be paid! What these gurus mean when they say that liens are "government guaranteed" is that the laws are on your side. If you don't get paid you can eventually foreclose on the property. The only thing guaranteeing your investment is the property! That's why I don't recommend investing in liens through the mail or online. Would you buy property that you didn't see first!

When you buy a tax certificate, even though you are not purchasing the property, there is always the chance that the lien will not redeem and you will have to foreclose on the property. What if the property is worthless? What if it is an unbuildable piece of land? Then you are stuck with a worthless piece of property that no one will want to buy from you and if you don't continue to pay the taxes on it, it will eventually revert back to the county that sold it to you.

Yes, there are risks involved in lien investing and no, it is not a sure thing. It is however an excellent way to invest your money if you know what you are doing. If you are contemplating buying a program to learn how to invest in lien certificates or tax deeds, beware! Don't buy an e-book, coaching program, or a course from someone who candy coats the business of investing in lien certificates and tax deeds and makes it sound like you can't fail and there are no risks. The truth is that you can fail and there are risks to avoid. Instead buy one of these products from someone who tells you what the risks are and how to avoid them. This will give you a better chance for success in buying profitable tax lien certificates and tax deeds.

 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ  

Joanne Musa is a Tax Lien Investing Coach and Consultant who works with investors who want to learn how to buy profitable tax lien certificates and tax deeds. She is the president of Tax Lien Consulting LLC, a consulting firm for tax lien investors. She is the author of the e-books: Tax Lien Investing Secrets and Tax Lien Lady's State Guide to Tax Lien and Tax Deed Investing, available at http://www.taxlienconsulting.com For more tips on investing in tax lien certificates send an e-mail to MoreTips@taxlienconsulting.com

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Million Dollar Homes Through Tax Liens

                                                             
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Tax Lien Certificates

There are two types of government tax sales used in the United States: one is tax deed sales and another is tax lien certificates. These certificates are issued against delinquent taxpayers who have not complied to pay their property taxes. A tax lien certificate has a face value of taxes owed along with administrative fees and interest.

At times, the government auctions tax lien certificates. All 50 states of US have different laws pertaining to this subject, and sometimes you may find that the procedures differ per county. Therefore, depending where the tax lien certificate is being auctioned, it can either be sold at that face value or it can be bidded upon. Some states also allow tax lien certificates to be bid on by interest rate. In this case, the person who agrees upon the lowest rate of interest on the tax lien certificate is announced as the winning bidder.

Once the tax lien certificate is sold, the delinquent taxpayer is required to pay back the amount of the lien plus interest accrued, typically 16-18%, back to the owner of the tax lien certificate. In case the delinquent taxpayers fails to repay within the required period of time as assigned by the court or the governing authority, the tax lien certificate holder is awarded a deed to the property.

To explain this in simple words, when you purchase tax lien certificates, you are guaranteed a fixed return on your investment. Depending on the state from where you purchase the certificate, the earnings may perhaps be as high as 50%. Even if you get paid less than 50%, your investment is protected with the actual property.

With tax lien certificates, the holder must make the required payment on the property tax payment for the property owner. And in turn, the property owner would pay the holder the agreed amount of taxes and the penalties so accrued. Thus, all you have to gain is a high yield percentage of interest or the possibility of a deed to that property.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ   

Tax Liens [http://www.WetPluto.com/Buying-Tax-Liens.html] provides detailed information about tax liens, government tax liens, tax lien auctions, and more. Tax Liens is affiliated with Tax Attorneys In California [http://www.WetPluto.com/Business-Tax-Attorneys.html].

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Buying Tax Liens

There are times when a property owner is unable to pay the required property tax. At such time they become delinquent taxpayer and the appropriate governing authority is in charge for collecting property taxes. This collection can be achieved through a tax auction. That brings us to the question, What is a Tax Lien auction? A tax lien auction is a court-ordered auction. Depending upon the state and the nature of sales it can be an auction for a Tax Deed Sales or Tax Lien Certificates.

You can buy a tax lien at auctions held by the taxing authority, which are generally held once a year. Depending upon the state and county that you are accessing there may be several types of auction bidding. Sometimes, not all Tax Liens are sold at the auction. This could either because of lack of bidding or because there were no acceptable bids. In such scenario, the Tax Lien can be bought over the counter at a later date.

You are not required to attend the auction to make a purchase. You can also buy a Tax Lien over the web and in mail. However, it is recommended that you buy them in person over the counter to eliminate error.

Buying tax liens is a very well hidden real estate investing secret. Many Americans are still not aware of the profit potential of such investment. Depending on the state where you buy the tax lien you can more often than not earn 18% to 50% or more per year. And if the delinquent taxpayer does not fall through the repayment, you still have the court backing the foreclosure of the property. Therefore, buying a tax lien allows you to have either the higher yield from repayment of tax or the actual title to property at a substantial discount.

However, before you jump onto this band wagon, it is advised that you do all the required homework. You can get information on a regular basis from the Review regional foreclosure lists.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ   

Tax Liens [http://www.WetPluto.com/Buying-Tax-Liens.html] provides detailed information about tax liens, government tax liens, tax lien auctions, and more. Tax Liens is affiliated with Tax Attorneys In California [http://www.WetPluto.com/Business-Tax-Attorneys.html].

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Tax Liens, Deeds and Certificates Explained

Tax liens, deeds and certificates? Have you heard of these? For some, it is but a complicated topic that needs no further intrusion. While for some, this is a vehicle towards financial freedom. To begin with, these enable investors to make serious money by buying distressed properties from delinquent taxpayers. Though not considered as real estate investing, it offers one of the superior returns on investment.

You might be confused when you hear about tax liens, deeds, and certificates. What are these and what are their similarities and differences? To help you further understand, read more:

Tax Liens
When a taxpayer fails to pay their taxes within a specified period, the federal government will issue a lien on the taxpayers' property. The purpose of the home lien is for the government to force the residents to pay their duties, and to eliminate the liability.

Another way for the government to lessen their liability is to sell the property lien in public. When a buyer purchases a lien, either through an auction or sometimes from the tax collector's office, the buyer assumes responsibility for it.

The buyer will earn from the ownership of the lien through guaranteed interest rate returns from the government plus the payment of their initial investment, i.e. the money they paid to purchase the lien. However, buyers have a little chance of owning the property unlike buying and owning a tax deed.

Tax Deeds (also called title)
Based on investopedia.com, deeds are a legal document that grants ownership of a property to a government body when the property owner does not pay the taxes due on the property. Moreover, realtor.com defines deeds as the legal document indicating ownership of the property. Here, the government will intercede to place distressed certain properties at an auction.

This allows the government the authority to sell properties through a tax sale. After a deed is placed over the property, the government will soon collect taxes by selling the property to prospective investors. The investor will pay the taxes to the government in exchange for the title. In return, the investor will assume ownership of the property.
 

Take note that compared to those property lien certificates in which buyers earn income in the form of interests from the lien, the deed owners has the potential to own the property if the owner-taxpayer fails to pay their taxes on time.

Tax Certificates
Also known as tax lien certificates, this is a certificate of claim against a property because of unpaid property tax. Moreover, a website states that tax lien certificates for buyers are considered 'first lien' on a delinquent property that yields the holder of the certificate high interest rates.

If the certificate is issued by the county office to the buyer, the property owner must pay the original amount of taxes, charges and interest accrued.

Typically, investors who want to purchase lien certificates can buy from their local county office -- although most are available through auctions.

Difference across the States
According to the National Tax Lien Association, United States is divided into three sections: states that sell tax liens, states that don't and states that have enabling legislation's to sell encumbered liens. Currently, there are 30 states that sell liens, 18 states that do not sell, and 2 states - California and Wisconsin - that enable their legislation's to sell tax liens.

Apart from these, states also differ from the rate of return, existing statues, auction and bidding process as well as the redemption period. For example, a tax lien can earn as low as 10 percent in Missouri and as high as 36 percent in Illinois. During the bidding process, bidding down the interest - used in Florida and Arizona - differs from what is used in Colorado and other states.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ   

Tax liens, deeds and certificates - these might be complicated but they can help you achieve financial freedom especially in these hard times. For more information, visit one of America's leading tax lien expert at http://www.tedthomas.com

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Secondary Tax Liens

Are secondary tax liens for you?

There are basically 2 types of tax lien investors; those that invest to get high interest on their money and those that invest for the possibility of owning properties for the back taxes. Which are you? Liens are not a way to get property for back taxes, but it does happen once in a while. Investors who want to own property have a better chance of getting the property with redeemable deeds. And of course with tax deed you are actually purchasing the property. But, did you know that there is another way to invest in liens and increase your chance of foreclosing on the properties?

You can increase your chances of foreclosing on a lien by buying secondary liens ready to foreclose from another tax lien investor. Why would an investor want to sell you their lien when it's ready to foreclose? Some investors buy liens for the return they get and they are really not interested in owning property. They may be investing from another state or another country and don't want to own property where they purchased the lien. They would rather have the return on their money then pay the foreclosure costs and wait for the lien to foreclose and then have to deal with having to rehab, sell, or rent the property. They would even rather take a smaller return than they bid at the tax sale, then go through the foreclosure process.

Large institutional lien buyers sell off their liens all the time, but they usually sell them in bulk to banks, fund companies, and large investors. They don't cater to small investors. And because they buy in such large quantities they aren't always as careful with their due diligence as you would be when purchasing a lien with your own money.

When purchasing secondary liens from an agent, look for a tax lien investing agent that buys liens for individuals and not big fund companies. They purchase liens individually and not in bulk and will be very careful with their due diligence on each lien they purchase. You also want to make sure that the liens are not close to expiring in which case you could lose your investment. If the liens are ready to foreclose you want to go ahead and start the foreclosure process before the lien expires. Buying secondary tax liens can be financially rewarding as long as you follow these guidelines.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Joanne Musa is a Tax Lien Investing Coach and Consultant who works with investors who want to learn how to invest in profitable tax lien certificates and tax deeds. She is founder of http://www.TaxLienLady.com, and is the author of numerous e-books and online courses for tax lien investing. You can watch the webinar and learn more about the secondary lien market by going to www.TaxLienLady.com/PIPwest-Mar2013

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Bidding on Tax Liens

                                                               
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5 Steps to Buying Tax Liens Online

There are five steps that you need to follow in order to be a successful tax lien investor whether you investing in tax liens online or in person. But how you follow out these steps is just a little different for the online tax sale. I like to use the acronym "STEPS" to describe these five steps.

The 5 Steps To Buying Good Liens Online Are:

1. Select where you will invest
2. Track down the tax sale information
3. Evaluate the tax sale properties
4. Prepare to bid at the sale
5. Show up and bid!

As I mentioned earlier these are the same five steps that you would use to get ready for any sale whether it is an online or live sale. However for participating in the online sales, you have to go about these steps a little differently. So let's take them one by one and go over what it is you need to do for each step.

Step 1: Select Where You Will Invest

If you want to invest in taxes online you are limited to the states that have online sales. Not every state in the US that sells liens has online auctions. Just three years ago, when I first started writing about investing in tax liens online, there were only five states that had tax lien auctions online, today there are seven. They are Arizona, Colorado, Florida, Indiana, Maryland, Louisiana and Nebraska. Even in those states, not all counties have online tax sales. You can find a list of these counties with links to the tax sale websites, and other details about their sales in my Buying Tax Liens Online course. The online sales are very different in each state, but they do have a few things in common, which brings us to step 2.

Step 2: Track Down The Tax Sale Information

This part is easy for the online sales because most if not all of the information you need is usually provided on the online bidding web site. To find out where to go you can call the county tax collector or treasurer or you can go to one of the online tax lien investing platform listed below that conduct many of the online sales.

Platforms For Online Tax Lien Auctions:

• RealAuction.com
• GrantStreetGroup.com
• SRI-AuctionsOnline.com
• CivicSource.com

Step 3: Evaluate The Tax Sale Properties

These counties make it easy for you to register and bid online. The hardest part of buying tax liens online is doing your due diligence for the tax sale properties. Unless you purchase a tax sale list from a tax list provider, or in some cases from the county, you don't always get to see the list of properties that are in the sale. Instead the properties are listed individually or in batches by an id number and you have to click on the property number to get the rest of the information on the property. Some counties do provide a lot of information about the properties on the tax sale web site, but you have to click on each property individually to get the information. They might also provide an excel file with all the properties listed that you can download to your computer, but this list has very little information about the property. This is where buying a detailed or enhanced list, with all of the assessment information for the property can me very helpful.

Step 4: Prepare To Bid At The Tax Sale

You need to register for online sales days or in some counties weeks ahead of the actual sale. You register for the sale and bid on the properties online. You are not actually bidding on the property, but on the tax lien certificate that is being auctioned. These sales usually require a deposit, and some of them have a non-refundable registration fee. Payment for the liens that you are successful bidding on is required within a day or two of the close of the tax sale for tax sales that use wire transfers as the method of payment. For sales that use ACH Debit as the method of payment for tax liens, you usually have to pay the day of the close of the tax sale. For these tax sales, you agree before hand to allow the county treasurer to debit your account for the tax liens that you purchase.

Step 5: Show Up And Bid!

Again this is easy for online tax sales because all you have to do is put your bids into your computer and usually, unlike the live sales, you have plenty of time to do it. The online tax sale web sites usually open up at least a couple of weeks before the sale is over, giving you plenty of time to bid as long as you register and get your deposit in on time. You do have to keep track of the time though, since the properties are usually separated into batches and a batch will close every hour - you must get your bid in before the batch closing time.

Also many of the online platforms allow you to download an excel file of the tax sale properties and upload your bids all at once instead of putting them in individually. The important thing is to double check your bids before submitting them. If you bid on a property by mistake and you are the successful bidder, there is no taking it back. You will have to purchase that lien or forfeit any successful bids and your deposit, and you will be barred from future sales. So just as with live tax sales, it's important not to have any distractions while you're bidding.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Joanne Musa works with people who want to build an extremely profitable portfolio of tax lien certificates or tax deeds FAST.
You can find out more about how you can invest in tax liens online with the Buying Tax Liens Online home study course at http://BuyingTaxLiensOnline.com

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Build Your Profitable Tax Lien Portfolio

Profitability is an important factor when you're considering where to put your money today. Nobody wants to put their money into an investment that can lose value, but in order to make high interest rates you have to take risks, right? That may be what you have been told, and you were probably also informed that if you want safe returns you'll have to settle for less interest. Your local government, however, manages to get high returns on their money, without putting it at risk. How do they do it?

Well, what happens if you don't pay your property taxes? If you live in the United States, the county or municipality that collects your property taxes is going to charge you dearly for not paying your taxes on time. You'll have to pay hefty interest charges on the money you owe and in some states additional penalties as well. If the taxes remain unpaid than the taxing district will do one of 2 things; either they will sell your property to satisfy your debt, or they will sell your tax bill to an investor who will pay the taxes in order to receive the interest and penalties. If they sell your tax bill to an investor that gives you some extra time to come up with the tax money before your property is foreclosed on to satisfy the back taxes, penalties and interest that you owe. This is what happens in lien states.

Tax liens have a guaranteed rate of return. That rate is the same rate that the taxing jurisdiction (county or municipality) charges property owners that are delinquent in paying their taxes. Some lien investing and real estate experts claim that liens are "government guaranteed." People here that and they assume that if they purchase a lien they are guaranteed to get paid. But that is not what is meant here. They are talking about the fact that the interest rate received for a lien is guaranteed by the local government, not that the investor is guaranteed to get paid.
 

Tax liens are also "real estate" guaranteed - that is they are guaranteed by the real estate that the lien is placed on. If you purchase a lien on a property and the owner of the property does not redeem the lien within the redemption period, then (in most states) you can foreclose on the property in order to satisfy your lien. So the return you get on your lien is guaranteed by the government and your lien is guaranteed by the property. Tax lien investing is a safe alternative to investing in high risk investments that do not have any underlying guarantees at all - like the stock market, currencies, options, commodities, futures, etc. It's also a great investment for your retirement account and you can purchase tax liens inside your self-directed IRA or 401K.
 The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Joanne Musa works with people who want to build an extremely profitable portfolio of tax lien certificates or tax deeds FAST. She is the author of Tax Lien Investing Secrets II, a complete system for learning how to invest in tax lien certificates and tax deeds for maximum profit, and founder of Tax Lien Consulting LLC, a consulting company specializing in tax lien investing coaching and education. Learn how you can build your own profitable portfolio of tax liens or redeemable tax deeds come to our 1 day tax lien investing conference on April 14. Find out more about the conference at http://www.taxlienlady.com/conference.

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5 Steps To Buying Profitable Tax Liens

Once you have purchased your first tax lien or liens, you need to take some steps to protect your investment and eventually you collect your profit. But before you protect your investment and profit from it, you first need to prepare to be a successful tax lien investor by taking the steps necessary to buy profitable liens. Here are what I call the 5 STEPS to purchasing profitable tax liens.

Select the Right Place To Invest

So many people ask me, "Where is the best place to invest in tax liens?" Or, "What are the best states to invest in?" But the truth is that the best place for me might not be the best place for you to invest. The best state for you to invest in depends on your answers to these questions:

* Are you looking for a high return on your investment or do you want to own property?
* What state do you live in?
* Where do you like to vacation?
* How much money do you have to invest?
* Are you investing with money from your retirement account or after tax money?
* Are you looking for a short term or long term investment?

If you don't have much money to invest than you really need to be looking at investing in tax liens and not tax deeds or redeemable deeds. If you would like to get the property and not just high interest on your money than you are better off investing in deed states or redeemable deed states. I don't think it's very wise to invest in a state just because they are one of the most profitable places to invest, especially if you live a few thousand miles away and that state is does not have online tax sales. The first thing that you need to do is to find the closest state to you where it would make sense for you to invest based on your answers to these questions.

Track Down the Tax Sale Information

Next you need to get the tax sale information, the bidding procedures for the tax sale, the location and time of the tax sale, the terms of the sale, and the tax sale list. There are resources and tools available to help you with this, but you can usually get the information that you need by calling the party responsible for the tax sale. Usually it's the county treasurer or county tax collector. If you can't the information that way, then there are tax sale list providers that will provide links to the county web sites and provide enhanced tax sale lists for a fee that will cut down the time it takes for you to do the next step.

Evaluate the Tax Sale Properties

This is probably the most important step in the process and involves you doing your due diligence on the properties in the tax sale to see which ones are worth bidding on. When evaluating the properties you need to have a way to track the information for each property. You'll need to know more about the properties in a tax deed sale than you will for tax lien properties. Even for tax lien properties you'll want to know that the property is valuable before you purchase a lien on it. At the very minimum you'll want to know the tax assessment of the property and see what the property looks like from the street. It's also nice to when it was last sold last and what is sold for and whether or not there is a mortgage on it. For tax deed properties you'll also want to know if there are any liens, judgments, or encumbrances on the properties. And for liens or deeds you'll want to make sure that there are no environmental problems. This information can be found online for most states, but sometimes you will have to go to the county assessment office or county hall of records to get the information that you need.

Prepare to Bid at the Tax Sale

Now that you've got the tax sale information and you've done your due diligence and determined which properties you will bid on, it's time to get ready to go to the tax sale. You'll have to register to bid and make sure that you have the proper form of payment for any successful bids that you might have. Make sure that you understand the terms of the sale and bidding procedures and that you complete any necessary paperwork. You'll need a tax ID in order to bid and for tax liens sales you'll need to supply a w-9 form. (Foreigners will need to have a w-8BEN form).

Show Up And Bid At The Tax Sale!

You've done all of your homework and now it's time to show up and bid. If the sale is live and not online make sure that you get there early, in plenty of time to get any updates - of liens or deeds that have been removed from the list, and a good seat. Make sure that you don't have any distractions, it is an auction and things happen very fast. It helps to have a bid sheet with all of the properties in the sale list and the ones that you want to bid on marked with the amount that you're prepared to bid. Do not get carried away and bid more than your pre-determined amount for a property and don't bid on any properties that you did not investigate first! Pay for any successful bids on time or they may be re-bid and you may be barred from future tax sales.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Follow these steps and you will be successful at purchasing profitable tax liens. For more help with finding out where the best place is for you to invest and for finding the tax sale information see my Tax Lien Investing Basics course at http://www.TaxLienInvestingBasics.com. For more help in finding out about the online tax lien sales see my Buying Tax Liens Online course at http://www.BuyingTaxLiensOnline.com.

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Tax Liens… It's Alright ?

                                                      
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Tax Lien Investing 101: The 4 Things You Need To Know

There are 4 things that you need to know about the state/county that you are investing in before you purchase a tax lien. Those 4 things are:

1. The default interest rate
2. The bidding procedure
3. The length of the redemption period
4. The expiration or life of the lien

Default Interest Rate
The default interest rate is the interest that the county charges the delinquent tax payer when they fail to pay their taxes on time and it's what the investor will get on the lien amount if the interest rate is not bid down at the tax sale, which brings us to the importance of the second thing on our list, the bidding procedure.

Bidding Procedure
Each state has its own method of bidding. In some states the interest rate is bid down and in other states the price of the lien is bid up - this is known as premium bid, or overbid. One state (New Jersey) actually does both, the interest rate can be bid down to 0% and then premium is bid on liens. Both of these methods have the effect of lowering the interest rate that the investor receives on the tax lien. In some state neither of these methods of bidding are used, but the ownership interest in the property, should the lien not redeem and the investor foreclose on the property, is bid down. And in other states a random selection or round robin process is used instead of bidding. As you can imagine it's very important to know what you are bidding and how low in interest or high in price you are willing to bid.

Length Of The Redemption Period
The redemption period is how long the owner of the property has to redeem the tax lien before the lien holder can bar the right to redeem and foreclose on the property, or in the case of Florida, apply for the property to be sold in a deed sale to satisfy the lien. It's important to know how long the redemption period is, so that you know when you can foreclose on a property that doesn't redeem. Some states only give you a certain amount of time to do this before the lien expires, which brings us to number 4 on our list, the expiration period.

Expiration Or Life Of The Lien
Tax liens do have expiration periods, after which they will expire worthless and you could lose your investment. Tax liens states differ greatly in their expiration periods or life of the lien. States with short redemption times tend to have shorter expiration periods than states with longer redemption periods. And some states have certain requirements that the investor must follow before the expiration of the lien in order to receive a deed to the property. So you can see that it's very important to pay attention to the expiration period in the state in which you're investing.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Joanne Musa works with people who want to build an extremely profitable portfolio of tax lien certificates or tax deeds FAST. She is the author of Tax Lien Investing Secrets II, a complete system for learning how to invest in tax lien certificates and tax deeds for maximum profit, and founder of Tax Lien Consulting LLC, a consulting company specializing in tax lien investing coaching and education.To find out more about the steps involved in building your profitable tax lien or tax deed portfolio, go to http://www.taxlienlady.com/ProfitablePortfolio.html.

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Tax Lien Investing: Time Verses Money

 
What do you have more of time or money?
Have money but no time?
Some investors have plenty of money to invest in tax lien certificates and/or tax deeds, but they don't have the time to do the due diligence and bid at the tax sales. If you're short on time but you have a substantial amount of money to invest then you might want to use a tax lien agent or a tax lien investing fund to do the work for you.
Agents and fund manager are experts at purchasing and managing profitable tax liens and tax deeds for their clients. They have a competitive edge that as an individual investor, you don't have, and they have a better chance of getting profitable liens than you do. By using a tax lien agent or investing in a tax lien fund you don't just take care of your problem of not having enough time to do the work; you also manage to be more competitive. This also solves the problem of having to travel if you don't live in the state that you want to invest in. For instance if you're in California, which is a deed state but you want to invest in liens, that could be a problem if you're doing it yourself.
Got the time but not much money?
If you don't have a big chunk of money to invest, but you have some time to do the work, you can start investing in tax liens with as little as $500. You just need to be able to have the time to go to tax sales and to do the due diligence necessary to ensure that you buy profitable liens. You can make decent profits with small liens; it will just take you longer to get enough money invested to where you are seeing decent redemption checks.

When I started investing back in 2002 I purchased one of my first small liens, it was a utility lien just under $500. In some states delinquent utilities owed to the town or county are sold at tax sales. This lien was for sewer charges and each year thereafter I was able to pay the subsequent sewer charges. The mortgage company paid the taxes, but the owners of the property never paid the sewer charges. Since in this state a tax lien does not expire for 20 years, I let this go on for a few years. Finally in 2011 - 9 years after I first purchased the lien, I forced redemption by sending a pre-foreclosure letter to the property owner and lien holders.
The mortgage company paid off the lien to the tune of over $7,201.74. Now this was not all profit, I had paid in $3919.56 over the course of 6 years (I made my last payment in 2008 and then did nothing for 3 years), $3282.18 was profit from interest and penalties. I almost doubled my money in 9 years starting with less than $500 and investing a total of under $4000 over 6 years, and then waiting 3 more years to collect my interest - you just can't do that in the bank!
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Joanne Musa is a tax lien and tax deed investing expert who helps investors buy profitable tax lien certificates and tax deeds. You can find out more about the excess proceeds strategy of tax deed investing and get a Free mini-course at http://www.TaxForeclosureFortunes.com.

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Getting Your Tax Liens To Redeem

I just love it when I get checks in the mail from tax collectors for redemptions of my tax liens. But what do you do when your liens don't redeem and the redemption period is over? This is somewhat state specific because some states don't give you much time to foreclose once the redemption period is over. You may only have 6 months after the redemption period before the lien expires, in those states you will have to start the foreclosure or deed application process right away and hope for the best.

But in states where tax liens have longer expiration periods there are things that you can do to maximize your return on your investment and get paid when you want to. Since I invest in a state that has a 2 year redemption period and a 20 year expiration period, I can let my liens go way past the redemption period and not worry about losing my investment as long as I pay the subsequent taxes. In fact the more I let the lien ride and pay my subsequent taxes, the more money I'll make. But there comes a time when I have more money into the lien than I want to have. I don't want the redemption amount to approach the value of the property; I don't want it to come close to half the value of the property. I don't want it to be more than 25% of what the property is worth.

So how do you know when it's time to start foreclosure on a property and force redemption, and how do you know if the property will redeem or if you will actually get to foreclose on it? If there is a mortgage or other substantial interest in the property, other than the homeowner, the lien is likely to redeem after the intent to foreclose notifications are sent. The property owner was not able to pay the taxes, and likely will not be able to redeem the lien. But a mortgage holder, once they have notice of a probably tax lien foreclosure will most likely redeem the lien to protect their interest in the property.

In the past 2 months I've had 3 liens redeem. I've held 2 of these liens for more than 7 years, one for 4 years and one for just over 2 years. All 3 of these liens redeemed because I had a lawyer send out intent to foreclose letters to the property owners and all lien holders. And in each case it was the mortgage company, not the property owner, who redeemed the lien.

Here are some other reasons why you may want to start the foreclosure process to force redemption on a tax lien, other than the redemption amount becoming more than 25% of the value of the property:

• You did not pay the subsequent taxes for whatever reason and someone else bought a subsequent tax lien on the property and now their redemption period is almost over.

• You are concerned that the owner of the property may be entering bankruptcy.

• You need cash

But what if the expiration period isn't over yet and you need cash and want to get the cash out of your investment? Can you do that even though the redemption period isn't over yet? You can't send an intent to foreclose letter if the redemption period isn't over yet, but you can send a notice of the lien to any lien holders on the property. If there is a mortgage on the property and they are notified of your lien, there is a good chance that they will redeem it. Another way to get your money out of your investment before the redemption period is over is to sell or "assign" your lien to another investor.

Remember that the laws are different in every state, so before you try any of these methods make sure that you check the state statutes regarding the redemption of tax lien certificates, or check with a tax lien attorney in your state. This article is for educational purposes only and should not be taken as legal advice.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Joanne Musa, the "Tax Lien Lady," has helped new investors all over the world explode their profits using safe, high yielding, real estate secured tax lien certificates. To receive your FREE Tax Lien Investing Kit, that has helped thousands of investors, just like you learn how to build their own profitable portfolio of tax lien certificates or tax deeds go to http://www.TaxLienInvestingKit.com.

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buying tax liens online

                                                         
Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ 

Investing in Tax Liens - An Introduction

If you are a home owner then you will surely know what property taxes are! Every county and local government in the United States charges property taxes which allows them to provide services to the local people. These services include everything from libraries, schools and local roads to police and fire departments. Without property taxes your local community would basically grind to a halt.

Every year you get a bill from the county outlining the taxes due from the previous year. If you don't pay that bill within a certain specified time frame there is a good chance that the county will put a lien on your property. A lien is a way of securing payment of an outstanding debt against the value in the property. You will also be charged additional interest and costs.

What happens if too many people pay their property taxes late? How does the county meets it's responsibilities such as paying the police department or road maintenance workers?

In order to meet their commitments and keep the local services running smoothly the county sells off the lien to investors at tax lien sales - Tax Lien Purchasing. The attraction for the investor is the potential to profit in the form of interest and/or penalty charges to the property owner when he is eventually in a position to settle his outstanding debt with the county.

In addition, if the owner is unable to settle the outstanding tax bill, then because the lien is secured against the property, the lien holder can move to foreclose. This can mean the lien holder can force a public sale of the property at auction and get paid the principal plus penalty and costs. In certain instances it can even mean that the lien holder ends up owning the property, free of all other liens. Investing in Tax Liens has the potential to bring extremely safe and secure returns.
 

There are several aspects to tax lien purchasing that investors should be aware of:

• How can I use the internet as a tool for researching liens and lien properties
• The differences between investing in tax liens and tax deeds
• How tax lien and tax deed requirements differ from state to state
• What are the inherent risks are how can I avoid them
• What is the process of bidding at tax sales
• What personal taxes will I be liable for as an investor

Tax Lien Purchasing doesn't seem to receive much publicity even though it is one of the safest investment strategies available. From my research, I heave learned that it is possible for investors to earn fixed returns of 10-25% or more through tax liens, and even in some instances purchase real estate for as little as 10-50 cents on the dollar.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    
In these uncertain economic times I am looking to Buy Homes With Tax Liens [http://www.buyhomeswithtaxliens.info] as it seems to be a safe and secure way to make above average returns in the real estate investment market....

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What Everybody Should Know About How To Buy Real Estate Tax Liens or Deeds

Should you invest in tax deeds or tax liens? Which is more profitable? No matter which you prefer the state you are living in and what your goals are will help you determine which is best for you. If you are looking to purchase a home or property below the market value then you are more likely to look at tax deeds. If you completed your research and purchase a tax lien on a very good property, the odds are slim that the home or property will ever go to foreclosure if the lien is not redeemed.

I live in Florida, and if the lien is not redeemed during the time period set for redemption, the lien switches over to a tax deed which is sold at a tax deed sale to pay back your investment. If you purchase the tax lien on a good property or home and are looking to purchase the property you'll need to bid against many other investors at the tax deed sale. If you are looking to invest in property or a home in Florida, then investing in tax deeds is your best way to go. If you are just looking to make a high return on your money instead of actually buying a property or home, then investing in tax liens is the way you should go. Doing your due diligence no matter if you are looking to invest in tax deeds or liens is very important.

If you're living on the West Coast, you need to consider investing in tax deeds. Almost all states on the West Coast are deed states, not lien states. You can travel to other states that are lien states, but that will definitely cut into your profits. You may also consider using the Internet to find tax deeds or liens in other states, but that gives you more investors to be in competition with plus increase expenses. You would never buy property or home without looking at it first and the same is true with investing in tax liens or deeds. You need to look at the property you are interested in investing in. You are not buying the property when investing in tax liens. You are investing only on the lien on the property.

If you are looking at maybe owning a home or property and receiving a good return on your money and you live close to a redeemable deed state, then you should think about purchasing redeemable deeds. Redeemable deeds are between tax liens and tax deeds. You buy the deed at a sale, and the previous owner may come back to redeemed the deed within the redemption time. They will have to pay a very large penalty in most redeemable deed states on the total amount that you paid for the deed at the sale. The penalty could be 20%, 25%, or even more which is a great return on your investment. Another good thing about redeemable deeds is a lot of your largest cities and bigger counties may have sales several times a year. Tax deeds or liens in tax liens state are usually sold in most states once a year.

If you are not looking to buy property but are looking for a good place to invest your money that is safe and secure and has a good rate of return on your money, then you should consider investing in tax liens. Before you start investing in tax liens or tax deeds, do your due diligence and learn as much as you can about the process.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    

Learning as much as you can about investing in real estate is very important. You need to know the right steps to take before you start investing. Visit our website at http://www.bestchoicerealty.net for a great resource that will help educate you in investing in real estate.

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