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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