The government collects taxes for a variety of reasons and services including providing for schools, police, roads etc. Governments have been doing this for well over 100 years in the U.S. alone and must do so to pay for operating expenses. One way to help make sure they receive these monies in a timely fashion is to offer real estate tax lien sales (lien certificates) in the event the owner of a property does not pay his taxes on time. This is not the only way for the government to ensure their collections; they may also offer tax deed sales in which the government will sell off the property with unpaid taxes to the highest bidder; turning full ownership and rights over to the winning investor at times for an incredible fraction of what the property is worth. (Ever heard of pennies on the dollar deals?).
Real estate lien sales
(tax certificates) and tax deed sales; just short of 100% guarantees the
government will get their money one way or another, that modes very
well for an investor who is investing in lien or deed sales. Not all
states offer one, the other or both at once; it depends on which state
the property with taxes due is located in.
So lets say your state
offers both tax lien sales and deed sales. A property owner who has not
paid his taxes on time will have a lien (security interest) placed on
the property he has not paid his bill on, this lean is called a tax lien
certificate.
The government will then put up this lien for
auction to the public, selling it to the highest bidder. After you win
you agree to pay the delinquent property owners taxes for him, when you
do this the government gets their money they need and you receive a lien
certificate showing proof of payment plus this gives you rights to
collect a debt and any interest owed from the delinquent non-payer. This
does not give you rights to anyone's property!!
When a delinquent
non-payer finally pays off his tax bill and over 98% do because they
know if they do not they can have their land sold out from in underneath
them, they will pay the government the total amount of the late bill
due plus an additional interest on the amount owed that is a penalty
imposed interest fee predetermined by the government. This interest fee
can be 14%, 18%, and even 24% or more depending on specifics!
Now
when the government collects the tax payment due plus the interest fee,
they contact you the investor who holds the certificate, you then turn
in the certificate for your initial investment plus the late interest
penalty for a very nice return on your investment.
That in a
nutshell is why real estate tax lien sales are one of the leading
investment opportunities going today and the reason why investors do not
like to share the wealth.
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
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
Stuart J Miller is enamored with tax lien investing. If what you
have just read grabbed your attention on the possibilities of investing,
go to Real Estate Tax Lien Sales
for more information and a complete 'System' to show you how to invest
in profitable Certificates and Tax Deeds. Plus grab these 3 bonuses
FREE- 1) Exclusive private invitation to attend a one-of-a-kind Q & A
teleseminar with the Tax Lien lady, 2) How to use a Self-directed IRA
to invest in Tax Lien Certificates and Deeds, 3) State guide to Tax Lien
and Deed Investing in every state. Real Estate Tax Lien Sales
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