Tax Lien Certificate

In a tax lien state upcoming tax sale notice are found in the classified section of the local legal newspaper. Keep in mind investors are bidding on the interest rates and not the property at these auctions. The investor that accepts the lowest interest rate wins the certificate.

Florida law states "tax certificate" is a legal document, representing unpaid delinquent real property tax, non-ad valorem assessments, including special assessments, interest, and related costs and charges, issued in accordance with this chapter against a specific parcel of real property and becoming a first lien thereon, superior to all other liens, except as provided by s.197 Florida Statutes.

Depends on the time the investor owned the tax lien certificate and the interest the state give. The investor will be paid up to 50% when the owner decides to pay the delinquent tax.

Depend on the state if delinquent tax payer doesn't pay, the investor can apply for a tax deed or title to the property.

Some state will have second tax sale where the property is auctioned off. When an investor buy the parcel, they will have clear the liens by paying you're the back taxes and interest before they can take ownership of the property.

Each state has the right to endorse statutory laws to manage how collection of unpaid taxes is conducted. Make sure you do your research on which state fits your investments needs.

Tax Certificate states include:

Alabama, Arizona, Colorado, Florida, Illinois, Iowa, Kentucky, Maryland, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, North Dakota, Puerto Rico, South Carolina, South Dakota, Vermont, West Virginia and Wyoming.

Having a lien on a property won't keep you from giving title or ownership of your property to someone else. Keep in mind it will be hard to sell your property.

A lien is attached to the property not the property owner. The lien holder has the option to take action to legally enforce payment anytime. Unless the property owner has the money to pay the lien holder he/she is left with no choice but to sell the property.

The order the debt must be paid off is done based on the date that the debt was recorded at the local county office. The good news is that all that has no effect on real estate taxes, Tax Lien takes priority regardless of when it was filed.

Tax lien will always be senior to all other liens regardless of the date and time of recording. When a property is sold to pay off all liens, the first lien recorded is the first to be paid, taxes hold a first lien position. Yes even above a mortgage! This is awesome news for us investors.

Tax Deeds

If your interest is in getting the properties, you must consider how you're going to research the parcels before buying. Ideally you may want to look at the property first. What you see is not always what you get with these properties.

Then consider the how much clean up will cost you. What do you want with the property after you own it, do you want to sell it or rent it. The choice is yours. Narrow your state that favor your strategy such as Arizona, Colorado and Maryland make sure you check with current state law before investing.

Check the foreclosure rate. If the foreclosure rate is high that's a buying signal. Keep the type of property in mind that you are interested in buying a Tax Deed or Tax certificate they are pros and cons for each property.

Residential: is my favorite, more in demand, greatest chance for appreciation, easy to sell, closer to schools, shopping and churches. Stay away from the bad part of town, Drugs, gangs and theft that would make it hard to sell or rent.

Commercial properties are harder to sell. You looking higher taxes because they worth more, if you decide to invest in this type of property and rent it make sure you setup legal protection in case someone fall and attempts to sue you.

Stick with residential real estate in neighborhoods where property values are appreciating and in counties with little to no competition.
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    

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