Hedge Funds and Tax Liens: The Future Correlation

Investors today are facing the toughest economy in decades and, as a result, low returns on hedge funds. So, how is one supposed to make the returns of yesterday in today's economy? What will be the next big source of investment income? These are the questions that top practitioners are asking. However, the answer may be right under their noses.

Since one hundred-fifty years ago, this country's counties and municipalities have been in the business of selling tax liens, which provide high yields for interested, knowledgeable investors. This type investment fits very well with the multi-strategy hedge funds, as well as those focused on the credit and real estate markets.

Understanding the Process:

However, before investors can make the plunge into this slightly unique market, they must understand the concepts behind it. One of those is the tax lien receivable, which is simply the right to collect taxes on a property. The reason that this term is so important to this market is because once a home owner falls into delinquency with property taxes, after some time, the bank has the right to place a lien on the property and sell that lien. The buyer is then able to collect back taxes from the property owner.

Because so much of a government's ability to allocate funds depends on the collection of property taxes, the failure to pay by individuals is very harmful. Thus, governments must look for quick solutions to alleviate the lost income. Otherwise, they must make cuts to their spending or raise property taxes for those who do continually meet their obligations. So, it is no surprise that many governments take advantage of the opportunity to sell the debt, which carries a collateral of the property itself.

So, why is this "a good buy" for the investor? As always, the answer is the interest earnings. As the property owner pays off the back debt, he or she must also pay a penalty in the form of interest. That interest can range from ten up to fifty percent. That spells tremendous gain for the holder of the lien. Even if the property owner fails to pay, in most cases, after a given amount of time the lien holder can foreclose on the house and arrange a sale. Bought at the right price, this too can account for tremendous income for the investor.

The Downfall:

At this point, the tax lien market suffers one major drawback. That is the lack of a secondary market or a uniform process for the resale of outstanding liens. For now liens are sold only once and the buyer assumes responsibility for collecting the debt due or following through with the foreclosure process. However, if a secondary market was developed, this could become a true source of investment and more would consider it as a type of hedge fund. They could, should they do it correctly, buy low and sell high and reap the rewards more quickly without having to bother with the mess of collecting the taxes due.

This is not to say that they do not offer a high return opportunity as is, but it is to say that they are currently not ideal for hedge fund type investment.

Risk Versus Reward:

Regardless of whether or not they work as a hedge fund at the moment, tax lien investors speak highly of this type of investment. One that invests in this market can expect an average of about ten percent gain on the outlay and the average lien purchase will see a fifty percent repayment in the first year. Not risk free, in that there is not a definite maturity date and foreclosure can be a long undertaking, these are still considered a favorable source of investment for many looking for lower risk and moderate yields.

Who Should Make the Investment?

Despite what was said above, included in the list of those that typically seek these types of investments - such as corporations and regional lien pools - are hedge funds and private equity firms. They are ideal for those not seeking easy liquidity and those that are properly backed with a knowledgeable legal team.

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

Brent Crouch is the owner of Tax Lien Properties.net. He has dedicated this site to providing a free state tax lien list.

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Tax Lien Certificate Sales - Your Best Source of Wholesale Buyers!

 
It's a little known fact that bidders at tax lien certificate sales are one of the best sources of wholesale buyers for your properties. And, you can get lists of these bidders from just about anywhere in the country, going back several years.

Why are the bidders at tax lien certificate sales excellent wholesale buyers?

1. They are likely to have cash available. Tax lien certificate sales require all cash upfront, and serious players invest hundreds of thousands of dollars at each sale. In many cases you can also request a list of what each bidder purchased at a given sale. This will help you identify the "players".
2. They are willing to gamble on properties they haven't even been able to inspect. As you may know, you cannot inspect the interior of any properties that are on tax lien certificate sales lists. If you make one of these bidders a wholesale buyer, they will now get to inspect your properties.
3. You will be able to show them how working with you is an excellent opportunity. You will be able to offer them properties that they can inspect, that they can obtain immediately, and that will not need a quiet title action. There ordinarily will be no legal action required either.

Now, don't forget that bidders at tax lien certificate sales are after a bargain, or they wouldn't be bidding at the sale in the first place. So don't waste their time with deals that aren't a bargain to them or you will quickly lose their attention. However, if you're worried about proceeding with dealmaking because you don't have cash to close, you will now be able to pass on your deals to these bidders and make a small wholesaling profit while providing the bidders an excellent deal.

So, how do you get lists of the bidders at past tax lien certificate sales? Simply make a public records request to the county for their past bidder lists.

You see, almost all counties require bidders at tax lien certificate sales to fill out an extensive registration form at the beginning of the sale, because hundreds of thousands, or even millions of dollars are changing hands at the sale. The county needs to know who each bidder is so they can properly assign the lien to that bidder and receive payment.

Usually, to get an auction paddle to bid, one must sign up on the master list. This list is retained indefinitely by the county and can be requested by the public as part of a public records request.

The list always contains, at minimum, the full name and address of the bidder. It also frequently contains phone numbers and other contact information.

Since you can make most public records requests by mail or email, you can now establish your wholesale buyer lists in any area of the country before you start working there, by filling it with bidders from past tax lien certificate sales.

Once you make contact with the bidders, make sure to explain the benefits of working with you, versus the investments they're currently making at tax lien certificate sales:

1. No waiting, bidding, or legal work.
2. You'll pass on only great deals to them
3. No quiet title actions needed (this is a legal action required for almost all tax lien properties)
4. A chance to acquire properties nobody else has access to.

So make your list of tax lien certificate auction bidders first, and then get out there and get some properties under contract.

The best source of properties to get under contract, incidentally, is properties that have already gone through the tax lien certificate sale and are about to be lost! Contact those owners who are about to lose their property to the sale and get them under contract, and flip to the bidders at the sale!
 Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

I'll show you exactly how it's done in my free 5-day email course, "Loophole to Tax Lien Certificate Sales", available at http://www.taxsale.net.
When you register you'll also get my free report, "Underground Tax Sale Strategies" by immediate download!

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Tax Lien Certificates As A Real Estate Investment

It is actually a certificate of the purchase which you get at the tax sale. This certificate documents your ownership in the tax lien. The powerful rights which come with the tax lien certificate makes it an attractive purchase.

The great potential for profits

Being a prudent and professional investor, you can reap immense profits of investing in tax certificate. If you work with a proper and sound strategy sticking to the basics, you can reap huge profits. As you just make a very small investment of the market value of the property, you will surely earn good profits on this transaction.

If anyhow the circumstances go on the wrong side, you can secure the complete rights of the real estate by just foreclosing the lien certificate. Overall investment in the lien is very safe.

Tension free investment

Many people who invest take it negatively that they are not provided with the right to real estate when they make investment in the lien certificate. But now if I depict you a real picture, in fact not having the property ownership works to your favor. As you are not bestowed the ownership rights to the real estate by buying the tax lien certificate, you also get complete freedom from the landowners liability. Nor is their any need to think about the repair of the invested property. Just keep in mind the ever growing lawsuits against the real estate owners and you would begin appreciating the advantage of this mechanism.

Securing the ownership of the property

During the property foreclosure, you will get the property ownership and rest of the subordinate liens and debts concerning the property will be cleared.

Securing a good passive revenue

When you make investment in tax lien certificates, you must not worry on anything and must sit back and count the benefits. Others people will do all the necessary work for you! Like you may not need to do enforcement of the purchased lien till the foreclosure as county will do the same for you. In many states the process of foreclosure is also handled by the county.

Buy the tax liens of later years

If can work in a smarter way, you can go in for the purchase of the later years tax liens devoid of any competition. If some delinquent owners of property default on the coming year's taxes, you need not participate in any action to buy those tax liens as you can purchase them privately.

Thus, when we talk of real estate investment in the tax lien certificates, the final result for the investors is always immensely profitable irrespective of the outcome.
 Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

Michael has been writing articles online for 10 years. Check out his latest website retirement investing [http://www.beginnerretirementinvesting.com/] which help people find more about flip real estate [http://www.beginnerretirementinvesting.com/how-to-flip-real-estate-properties-well/].

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3 Reasons to Use a Self-Directed IRA to Buy Tax Lien Properties

The IRS Code has allowed investors to form self-directed IRA's since the mid 1970's. With a self-directed IRA, you can direct investments into nontraditional items such as to buy tax lien certificates. Here are three reasons why you can benefit from using a self directed IRA to buy tax lien certificates.

1. Double Your Money Quickly. An IRA can be supercharged when you buy tax lien certificates. If bought in Arizona, a tax lien certificate can earn up to 16% annually in your self-directed IRA. When you buy tax lien investments you generally receive the amount invested plus interest within 12 months. If you continue to reinvest in tax liens year after year at 16%, you can double your money in about 4.4 years. Only a self-directed IRA can preserve this 16% return, as traditional IRA's do not generally invest in tax liens.

2. Your Money Grows Tax Free. By buying tax liens in a self-directed IRA, you can avoid all taxes until the money invested is withdrawn from the IRA, which is usually around age 59 1/2. The money can be invested once, twice or a thousand times and continue to grow tax free, so long as it is not removed from the self-directed IRA.

3. The Flexibility to Buy Time Sensitive Investments. Many self-directed IRA's allow you to carry a check book that is tied to the account. This gives the investor incredible freedom to buy a bargain property at a moments notice. In this arrangement, you can buy tax liens with the stroke of the pen, without a fund manager or other bureaucrat saying no or otherwise trying to slow down the process.

To maximize you returns, learn how to form a self-directed IRA. Make sure you have a check book tied to the IRA to allow you to invest in time sensitive investments such as tax foreclosure properties, or to buy tax lien certificates. By doing this, your investment grows tax free and will double every 4.4 years. You'll pay no commissions or transaction fees. This is the best way to keep your hard earned money and make it grow like wildfire.

Nationsbank and Wachovia have been buying these secret investments for years. These secret investment ideas are now being revealed to you,the little guy so you too can earn 16-50% on your money. With Wall Street and traditional real estate investments rapidly deteriorating, you need to look for a safe place for your hard earned dollar. Tax liens are backed and leveraged by real estate and guaranteed by the government. In most states, they are a first lien on real estate, and when foreclosed, they wipe out all junior liens, including mortgages. This allows you to potentially receive a valuable piece of real estate for pennies on the dollar.
 Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ
Discover more about how to buy tax lien property at my blog, http://www.buytaxlien.net

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Profit Without Risk - Why Now is the Right Time to Invest in Tax Lien Certificates

Unfortunately you cannot trust the media. Just when they say it's time to get into an investment opportunity, that's when it's usually oversold and it's time for the wise investors to get out. Regardless of what the media is saying about the real estate market, the market is down and we've not seen the bottom yet. There are so many people that are defaulting on their homes and because of the backlog that the banks have, we won't see those homes on the market for another two years. So as bad as the market is today, two years from now it will probably be worse.

The stock market is also going through a natural correction, much like it did in 1939. It's all very predictable and connected to cycles in the economy. If you really want to understand these cycles, read The Great Depression Ahead by Harry Dent. Mr. Dent is the renowned economic forecaster who accurately predicted the boom of the early 2000s and the most recent stock market crash, which he claims is not done yet. And to make things even worse the baby boomers are headed for retirement. This is the time when they want to cash in on their investments and take profits. Only problem is there might not be any profits for you if you were heavily invested in the stock market (especially in "safe" mutual funds) or real estate.

However, if you had a large percentage of your investment portfolio in tax lien certificates you'd be sitting pretty right now. That's because tax lien certificates - even though they are tied to real estate, are not affected by the markets. In order to understand this you need to know what a tax lien certificate is.

Municipalities and counties cannot provide the services that they do, such as building roads, schools, paying police officers, fireman, teachers, and elected officials, without collecting property taxes. If property owners do not pay their taxes they are given hefty penalties and charged high interest rates, but that does not guarantee the townships and counties their money. So some states will allow the local governments - sometimes it's the county and sometimes it's the municipality - to sell the taxes to investors. Investors bid for the right to pay the taxes and receive the interest rates that the county would charge - normally between 8% and 36% depending on the state and the amount of the lien.

A tax lien certificate is a great investment for today's times for quite a few reasons, and I'll outline a few of them for you here:

1. Where else can you get 8, 12, 18, 25, or 36% on your money without the risk of the stock market?

2. Your investment is secured by real estate, which has a value a few times your investment (if you did your research). So even if the real estate market takes a tumble, it's still worth more than your investment.
3. Since you do not have to go through someone else to purchase a tax lien, there are no brokerage fees.
4. Unlike other real estate investments, you don't need a lot of money to start. You can invest as little as $200, or even less in a tax lien.
5. You don't need good credit, you don't have to open a special account, and you don't even need to be a U.S. citizen or live in the U.S.
6. You can invest using your computer from the comfort of your home.
7. You can invest with funds from your Self-directed IRA.
8. Because of the economy there are more tax liens available now than in the past couple of years.
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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Tax Lien Certificate Investing - A Little Known Investment That Provides Massive Wealth!

Tax Lien Certificates as Investments
Tax lien certificates may be worthwhile investments for individuals who do not possess a great deal of capital to invest. Further the availability of the little known investment opportunity in the way of tax lien certificates has generally flooded the market! So what is a tax lien certificate and how can you benefit by investing in it? To explain further, city governments require taxes in order to provide us much needed services within the community. The services include law enforcement protection, medical care, and educational instruction.
Persons who do not pay their mortgage notes on time become delinquent on their property taxes as well and the taxes are needed in order for local government to stay solvent with respect to community services. This is where you come in as an investor of tax lien certificates. What you do is purchase the individual's delinquent property tax liens. You pay the taxes and the property owner is happy and so are the local officials.
However, why would any investor want someone's tax lien? The reason is because the certificates can allow the investor to realize a fixed rate of interest with a piece of real estate to back it up. In fact the rate of return can be quite substantial so taking someone's tax bill off their hands becomes well worth the investment.
In order to get started with the money-making opportunity you will first need to thoroughly educate yourself as to what it is you are doing. With regard to this, a link is offered within the author's resource box. However, that said, the place to begin the process outside of educating yourself as much as possible is the information gathering phase. What you'll want to do in order to begin the exciting money-making endeavor is to contact your County's Treasurer's Office. Ask the following questions:
1. When will your county conduct your next tax sale?
2. Where is the location of the sale?
3. Where can I attain a list of property liens?
4. Where may I attain requirements/regulations of the sale?
5. What is the interest rate respective of the tax lien sale?
6. Does the county have any tax lien certificates that have not been sold from the previous tax sale. If they say yes then ask to see a list. If the answer is no then ask what department maintains the list.
The list of certificates can be massive therefore the investment potential is terrific. Again in order to find out more about this little known money-making opportunity that does not require much capital to get started click on the following link provided within the author's resource box.
Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

Meredith Banks is a favored financial columnist and author within many financial circles. In order to find out more about tax lien certificate investing, click on the following link to attain some relatively inexpensive education. This is probably one of the least known forms of investing and anyone, anywhere and within any age group: young to older may certainly take advantage of it. The link follows:
http://www.webspawner.com/users/meredithbanks/

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Where to Find Tax Lien Auctions

There are times when a property owner is unable to pay the obligation in property tax. When this happen, a property owner becomes a delinquent taxpayer and a governing authority is in charge of collecting the taxes. However, if the authority is not able to collect the required property taxes, they will opt to take the final step to collect the taxes. The public auction is the final step that will take the delinquent properties to be sold. Auction is an auction ordered by the court depending on the nature of sales in the form of tax lien certificates or tax deed sales. Auction in the form of tax lien certificate entails selling of certificates to assert the total sum of taxes as well as the administrative interests and charges.

The required property tax will be achieved through a auction and the delinquent properties are offered in the amount due for the taxes, interests and fees. Tax lien auction is an open sale that is why participants may tender their bids over and under the amount required for the tax of delinquent properties. The drawback is that the buyer will not be able to recover or refund the overbid.

Purchasing a tax lien certificate to pay against the required property taxes incurred by the delinquent taxpayer.

However, the delinquent taxpayer along with the interest charges will pay the amount back to you that are about 16-18%. This kind of auction allows the buyer the possibility to acquire the property in case of fail to repay by the delinquent taxpayer. In addition, the buyer can also obtain higher percentage of interest when repayment is made.

A referee appointed by the court conducts the tax lien auction. As the auction starts the referee announces the terms of sale and the required amount of bidder's deposit. Just like any procurement bidding process, the prospective buyer or bidder is required to pay 10 percent of the bid amount in form of certified check payable to the referee. The delinquent properties sold in a auction are sold where is and as is. This means that a bidder has no right to investigate the property prior to the auction schedule as well as inspect the interior of the property. Although the property is deemed foreclosure, it is not allowed to enter the property and do some inspection. This may seem that your bid is in uncertainty because whatever the condition of the property you are not allowed to investigate and inspect.

There are many listings offered by different websites that allows the prohibition of keying the data for the buyer or bidder. This will also let the buyer to choose the right lists that qualifies to the criteria.
Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

Do you need complete government listings for sales of liens, Tax lien auction, government tax liens, government tax sale properties and make profit from tax sales? Log on to http://www.taxsalelists.com and get all the useful information.

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Know More About Government Tax Liens

There are services offered by many reliable websites one is the government tax liens. This kind of service gives the buyer a chance to claim for money that is higher than the others. It is being secured by the real state as well as the mortgages. The government tax liens list provided gives the buyer the capability to filter and sort the list suitable for your own criteria. The list spares you from visiting a courthouse that is a requirement in processing the required tax.

Every government or state requires every property owner to pay property taxes. The tax is computed based on the value of the property owned. Government tax is also known as real state taxes. More often than not, some property owners were unable to comply with the obligation of paying property tax. Such situation will put the property into a delinquent position. Appropriate government authority is in charge for collecting unpaid property taxes if the property delinquency is established. Thus, tax auction or tax sale is conducted to achieve the collection.

Each government has a separate set of laws governing collection of delinquent taxes. The local government most often is in charge of collecting these taxes because it is used for government projects and other improvement. Great deals can be found at government tax sales especially if the property is foreclosure. However, you must keep in mind these delinquent properties may need some fixing. Often times, buyers get the good value for money in purchasing delinquent properties. If you want to buy a property in this market you must understand the circumstances. You must be well informed and prepared to find the best bargain.

Just like the auction, others are categorized as tax lien certificates and tax deed sales. Under this, the buyer purchases the rights. In this instance, the homeowner owes you the money but there is no transfer of the property yet during the auction. Nevertheless, the delinquent taxpayer is required to pay you back the amount of the lien as well as the charges and interest. The deed of the delinquent property can only be awarded to the new owner of certificate just in case the delinquent owner fails to pay within the given period.

On the other hand, a buyer actually purchases the rights to the properties once you have entered in tax deed sales and eventually ownership is awarded to the buyer. The minimum bid is computed on the total sum of delinquent tax liable and the administrative interest and charges incurred. The highest bidder is awarded the deed of the property outright during the auction. However, there are also some rules to be followed regarding the restrictions on possession.

Engaging in government tax liens requires a buyer to be armed with more knowledge. You should look for information regarding the properties you identified to purchase without inspecting the interior of the property. Check for the market value of the property so that you will know if it is worth your money.
Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

Do you need complete government listings for sales of liens, Tax lien auction, government tax liens, government tax sale properties and make profit from tax sales? Log on to http://www.taxsalelists.com and get all the useful information.

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Do Not Allow Federal Tax Lien to Destroy Your Financial Life

Do you have any unpaid tax bill? Then check out if you have received any notice of Federal Tax Lien. This is a tool used by IRS to declare to the world that you are the defaulter and have not paid the taxes.

This tiny little notification has a power to destroy your credit history to a large extent. This notice will stay attached to all your assets and thus you will not be able to sell or apply for a loan against any of your assets. You will find yourself ineligible to purchase even a small asset because of this lien. It will have worst consequences on your entire financial life as it has such a smashing impact on your credit.

After receiving the Federal Tax lien notice you are supposed to pay the tax bill within the given time limit. If you fail to do so, then the IRS is free to file the notice of your debt in all the public records offices. This notice will also be sent in any other country wherever you live if you are not living in US. If you have real estates in other countries, IRS will reach there also.

IRS of course gives you a notice before this happens to give you a final chance to clear up your tax debt. You also get a chance of a hearing from the IRS, wherein you can challenge the validity of the lien. If you fail to convince IRS, then you have further option to appeal to the U.S. Tax Court or a federal district court.

But it is always a good policy to get the Lien released by negotiating with IRS. For this you will have to pay the tax debt in full. You can also think of filing bankruptcy if the conditions are not manageable. The IRS also accepts compromise offers in such cases. After a period of 10 years the statute of limitation can also eliminate this lien.

Once the lien is released, the same is confirmed from IRS by sending you a Certificate of Release of lien within 30 days time. You have to maintain such certificates for each and every lien filed against you. If it is not received by you, you can request for it to the Chief of Special Procedures in the same IRS office from where the lien was filed.

After this work you need to clean your credit report. You should contact the credit reporting agencies and acquire a copy of your credit report. Check these reports properly to confirm if your credit history is properly updated or not. In case it is not, you have to request these agencies to check the public records or contact the IRS. You can also furnish them a copy of the certificate for a quick correction.

Remember, the issuance of a tax lien can remain on your credit records for 10 long years! 

A tax lien can prove fatal to your financial life. IRS has wide powers to reach to your assets wherever they are and to report the lien to the credit bureaus. Your options are limited in such a situation and you have to take quick action to prevent further damage. What to do all when you receive a notice of tax lien? Chintamani Abhyankar explains.
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS [http://www.planningyourtax.com] which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.
Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

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Purchasing Investment Property Through Tax Lien Certificates

Declining real estate markets can provide many opportunities for the real estate investor. A smart investor can use several different ways to make money in today's real estate market. Most investors use one or two preferred methods of acquiring and selling real estate that has worked in the past for them. If you are new to the real estate investment industry, or even a seasoned veteran, consider using tax lien certificates as a way of acquiring real estate.

Liens are created when a property owner is late on paying their real property taxes. A tax lien certificate is issued in the county or municipality where the property is located, usually after an extended time period. Some states allow the tax lien to become the first lien on the property, even ahead of the first mortgage, which is then turned around and sold at auction as a tax lien certificate.

After bidding successfully, buyers of a government issued tax lien certificate will get one of two items:

1. A state mandated yield from the lien which the delinquent taxpayer must pay to release the lien, usually the original taxes plus interest and fees.

2. Title to the real property (after a period of time set up by the jurisdiction) if the delinquent taxpayer does not pay the taxes, interest and fees.

A fixed percentage rate, mandated by a government agency, or the title of the property at a significant discount are some of the benefits that have attracted more real estate investors to tax liens. It is the relatively low cost involved with the purchase of a lien certificate that is so attractive to buyers. This benefit is rarely seen with other types of real estate transactions.

Some of the drawbacks to purchasing these types of liens are that if the proper title and bankruptcy research aren't done correctly, and the appropriate due diligence isn't conducted, the lien can become worthless. Bankruptcy filing can make a tax lien holder take a back seat to any and all creditors, especially the IRS. Purchasing property without inspecting it personally or through a reputable real estate agency or appraisal service is unwise, especially if the property has undesirable features not noted in the county description, such as condition issues. Do the research before purchasing any tax lien certificate. Paying a small appraisal fee and title research fee to confirm the property status can save a lot of trouble and money overall.

Lien sales purchases are usually made in cash only. Sometimes payment can be made in 48 hours, while others require payment in full at the sale or auction. Several online sites have made arrangements with many county officials to sell distressed properties their sites. Check with your county or the county you are interested in about online availability of sales.

Tax lien certificates can bring a substantial return on investment to the investor. Do your homework before any purchases are made, and the effort will be worth your trouble.
Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ

Karen Jackson is a real estate appraiser and agent with over 11 years experience in helping others buy and evaluate property. See http://kjreestinvestor.blog.com/ for more information.

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What Are Tax Liens?

Tax liens are a beautiful thing, but they have lost effectiveness as an investment vehicle for most in recent years. This is yet another way one can get into the business of investment properties.

What is a tax lien?

Everyone who owns property must pay property tax. The government is the real owner of the property you are on, and you pay him for the right to say it is yours. If you pay, then you can keep it. However, if you don't, the government will come knocking on your door, demanding its property back. This is where tax liens get their basis.

Obviously, there is a problem when somebody is about to lose his or her home from not paying taxes. Chances are, he or she would like a second chance. Perhaps this was due to a recent layoff, or maybe it was from a bad investment. Usually, somebody who can afford a home can continue paying on it. Sometimes, however, there is a hiccup, but this doesn't mean the person won't be able to pay on the home in the future; this just means they cannot pay it right now. Rather than lose their home, investors have made their way in to this situation and said "Hello Mr. House-owner, I see you're in trouble and are about to lose your home from not paying your property tax. I'd like to propose an offer that can keep you and your family in your house. I'll pay the property tax off for you in full, and you can pay me back in an installment plan over a period of time." This is a good option for most people, as most homeowners can afford the mortgage payments as well as the tax lien payments after their temporary setback is resolved.

This is a good deal for investors, too. The interest rate charged on tax liens can be as high as fifty-percent, but it is usually more in the range between ten and twenty percent. This is quite a bit better than savings accounts.

What if they don't pay you back?

Then this is an even better deal for the investor; the investor gets to take the house in the case that he or she does not get paid by the homeowner. This assures the investor that his or her investment is safe, and provides a guarantee that he or she will make a profit. Tax liens receive priority over most other forms of debt, so the investor usually gets paid first. It is important, however, to check the history of the property just to make sure there isn't a lien on there that would receive priority over yours.

An almost free house!

While it is true that this results in an extremely low cost house sometimes, it is not usually the case. Most people are unwilling to lose their home for a few thousand dollars, so they find ways to pay the tax lien. It helps, instead, to view the interest rate received on the liens as your profit.

Where can I get a tax lien?

Tax liens are available in county court auctions which occur at various dates throughout the year. The problem with tax liens is that many businesses are built on finding these tax liens and winning them at auctions. This makes it difficult for small investors to find good deals. Beginning investors are advised to look for tax liens in more rural counties. Still though, the travel expenses may end up eliminating the benefit gained from tax liens. However, if one is located already in a rural county which offers tax lien sales, he or she may benefit by buying these rather than putting his or her money in a savings account.
 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 

Cody Scholberg is an expert author on real estate investment strategies. Read more at investment properties guide [http://www.investmentpropertiesguide.com].

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Tax Lien Investing - From the Field

In April I went to a tax sale in New Jersey. Here's what I noticed at this tax sale. There were more properties available than last year, but there were also more bidders. A couple of institutional buyers showed up who don't normally come to this particular tax sale. At least they weren't there in 2007 and 2008. And there were also a couple of new companies that I haven't seen before. After talking to them I learned that one of these companies just started earlier this year and the other is into tax lien investing again after being away from it for a few years. There were also a couple of new investors just checking on what this tax lien investing thing is all about as well as the usual crowd.

Most of the "good" properties - by good, I mean safe properties, properties that you know are going to redeem and have a decent looking structure on them, went at premium, except for one that went for 1%. There were a few parcels of vacant land and one trailer that went from 17% to 18% and there were a few pieces of undesirable vacant land that went to the township. There was one very large lien (over $60,000) that originally was struck off to the township, but one of the investors got it at 18% after the tax sale. It was a corner lot with some old barns on it.

I went to this sale in order to pay the subsequent taxes on two of my liens to keep them out of the tax sale, and to see if I could pick up another lien. I was able to get a lien on a nice building lot for 18%. The lien was for around $2600. I also have two other liens on properties in this same development (it's really just a cul-de-sac). The builder has come on hard times and has stopped building and stopped paying the taxes. He's been trying to sell the building lots, but they aren't moving in this slow economy. Maybe I'll actually be able to foreclose on these lots!
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 consultant who helps investors from all over the world to develop a profitable tax lien or tax deed portfolio. Joanne provides detailed information on how to start building your own profitable portfolio of tax lien certificates or tax deeds and video and audio training on the Members Area of http://www.TaxLienLady.com.

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Investing in Tax Lien Certificates - An Advantage Over Other Types of Real Estate Investing

I finally figured out why I've been successful at investing in tax lien certificates, but have not been very successful at other types of real estate investing. All this time I thought it was just because there's less money needed for tax lien investing than there is for most other types of real estate investing. But now I think that I've found out the real reason. It's my negotiating and communication skills, or should I say lack thereof.

Most types of real estate investing require negotiation and communication. You have to get on the phone and talk to someone, negotiate a price, and make a deal. Worse than that, you might have to make a few cold calls - you know call someone that has a property for sale or rent who doesn't know you from Adam, ask them about their property, and determine if they'll sell it to you, at a discount and preferable for no money down.

Well I don't know about you, but when it came to these calls I was terrified of the phone. It wasn't actually the phone that I was afraid of but the person on the other end of it. It didn't matter if they were calling me and responding to one of my "we buy houses" ads, or I was calling them on their for sale or for rent ad. And then I had to meet them in person, look at their property and negotiate a deal. I just didn't consider myself a good negotiator.

With tax lien investing on the other hand, there is nothing to negotiate. Usually, I never have to talk to the delinquent taxpayer. The only person that I have to talk to is the tax collector and maybe the other bidders at the sale. I don't have to negotiate the terms of the deal. State law already specifies all of that. All I have to be concerned about is exactly how low in interest or how high in premium I want to bid. No negotiating skills needed - Another benefit of tax lien investing over other types of real estate 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 investors who want to reap the rewards of investing in profitable tax lien certificates and tax deeds. Her tax lien investing articles appear all over the Internet. Her no-nonsense, straightforward approach to tax lien investing has earned her the title of the "Tax Lien Lady." As the owner of Tax Lien Consulting LLC, she has developed a full line of educational courses for investing in tax lien certificates and tax deeds. You can get her free special report, 7 Steps to Building Your Profitable Tax Lien Portfolio at http://www.TaxLienInvestingBasics.com.

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Tax Lien Investing - Credit Cards in Reverse?

Tax lien investing has been and is becoming ever more popular with the ways of the internet boosting the knowledge of the wealth that investing in tax lien certificates can bring. Additionally television infomercials have also helped to increase the popularity of what use to be a not so popular form of investing.

However while these commercials may promote the benefit of property ownership, what is often overlooked is the benefit of the high interest rates that you are able to receive. Aside from the promises of getting rich quick through tax lien foreclosures, you can definitely get rich slowly buy investing in tax liens for interest and intermediate to long term gains.

While other investors stare into the future of becoming an overnight real estate tax lien guru you can concentrate on the fundamentals of tax lien investing to set up a solid foundation for future wealth. Not only are these investments in many cases guaranteed by the government, but they also have an excellent rate of return on your interest.

Investors who invest in tax liens can often realize a return on investment of over 10% on a regular basis. This may not sound like much but it is much harder to accomplish this goal a regular basis with stocks. Additionally tax liens can help you to realize returns of up to 50% or more!

Don't be fooled with the promises of the get rich quick hype you see with tax lien investing. The truth is you can gain ownership to properties for pennies on the dollar. What they won't tell you is that in order to achieve this you must invest in hundred of properties, as you will on average only gain ownership on one in hundreds of houses that you invest in.

In conclusion don't obsess with getting rich overnight. While this is definitely possible it is not the case for your average investor. You may be better off trying to start investing in tax deeds which are more conducive to property ownership. You have to remember the old story of the tortoise and the hare. Slow and steady will win the race every time.
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 

As a word of advice, before getting started in tax lien investing, you have to do your research. If you invest in a worthless property you could end up losing your investment. Although tax liens are considered by many one of the safest forms of investing, you want to look for certain signs of caution to ensure maximum returns.

If you want more information on how to buy a tax lien certificate the right way go to http://taxlienblog.blogspot.com/
To learn more about tax lien and tax deed investing click on the link above!

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How To Make Money Online And Ignore The Naysayers

Not every brick and mortar business adventure works out. Businesses close all the time, even ones that work in traditional and high demand areas. An online businessperson can fall into the same pitfalls that a traditional brick and mortar businessperson can fall into. Just because someone else failed does not mean you will especially if you know the tricks on how to make money online.
When you work your idea that will "make money online" for you, you need to make sure your idea is relevant. Do not offer something obsolete. You also need sound guidance. Without the right guidance, nearly everyone will be doomed to failure.
Other people can make money online, why can't you? You do not need a business degree. You do not need a fancy advisory board. All you need is a little effort, a lot of desire, a computer, internet access and a bit of creativity. Let the "Negative Nellies" continue to work for someone else. Let them make their manager's bonuses bigger. You can work for yourself and enjoy reaping all of the rewards of being your own boss.
There are a lot of people who will tell you that it is impossible to make money online or it is impossible to make enough money online to support a family.
Ignore those naysayers!
The truth of the matter is that right now, there are thousands of people who make money online.
Those "Negative Nellies" are probably people who tried to be their own bosses and failed to make money online. The question is: why did they fail? How much effort did they put toward their business? Some people think that the internet will just hand them cash. If you want to make money online, you will have to work but you will not have to work as hard as you may think. If the negative people did not market themselves and their service properly then yes, they did fail.
For the most exciting money making system available today that guarantees to make money and we will even do the sales for you. tiny.cc/mobeaff1

There are thousands of people who successfully make money online [http://www.majorenterprise.net] and are reaping the benefits of their hard work and dedication.

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Federal Tax Liens - What They Are and Why They Matter

Taxpayers who have fallen behind in paying their taxes may have to face having a "notice of federal tax lien" filed against them. This can have big - and bad - effects on their lives.

Liens 101: What is a Lien?

For those unfamiliar with the term, a "lien" is essentially a claim -- someone claims you owe them money. As Black's Law Dictionary put it, a lien is "a claim or charge on property for payment of some debt, obligation, or duty."

In certain situations, the person (or business, or government agency) making the claim can file a document announcing this claim with the County Clerk or other public records authority.

For example, in New York City, liens are not filed with the County Clerk. Instead, they are filed with the "City Register," but for purposes of this article, I'll just refer to the County Clerk as being the public records authority, whatever title some city or town might use.

By filing a lien with the County Clerk, the claimant announces to the world (and especially to credit reporting agencies) that the claimant says you owe it money.

It's like taking a private debt (or claimed debt) and shouting from the rooftops to everyone around: "you owe me money!"

Why Should I Care?

After all, just because some joker might say you owe them money doesn't mean you really do, right? Yes, but...

Publicly filing a lien can have a real and negative effect on your life. It can

• damage or even ruin your credit score, making it harder, more expensive, or even impossible to get a loan, mortgage or other credit.
• interfere with, complicate, or wreck your efforts to sell property, and, imagine an agent from the IRS showing up at the closing when you sell your house or apartment demanding the IRS's piece of the proceeds.
• make you ineligible for certain jobs.

How the IRS Uses Liens

As mentioned above, the lien the IRS has against taxpayers has its own special name: a "federal tax lien."

The IRS uses the federal tax lien as part of the set of tools it can use to make sure it collects taxes. And, the IRS uses this tool a lot! For example, for the 30 days running between the middle of January 2009 and the middle of February, in New York City, on the island of Manhattan alone, the IRS filed 580 liens.

580 liens in a month works out to be almost 27 liens filed every business day.

Don't You Have to Owe a Lot to Have an IRS Lien Filed?

How much do you have to owe for the IRS to file a lien?

It is amazing how little it can take. In mid-February, 2009, the IRS filed a notice of federal tax lien on a tax debt of only $41.06. This $41 dollar lien was filed only hours before this article was written.

On the other end of the scale, the largest lien filed in Manhattan in this one-month period in early 2009 was for over $8 million dollars.

The range of tax debts that become targets of federal tax lien filings show how far and wide the IRS reaches, affecting tens of thousands of taxpayers across the country every month, in its effort to collect unpaid taxes.
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 

Allan R. Pearlman, Esq. is an attorney who helps taxpayers, both individuals and businesses, who are being hunted by the IRS get out of trouble. He has written a free special report titled, "7 Big Mistakes Taxpayers Make and How to Avoid Them to (Legally) Keep the IRS Out of Your Wallet, Out of Your Bank Account, and Out of Your Paycheck." Get this report free by going to http://www.arpearlmanlaw.com/AvoidTaxMistakes/. His website can be seen at http://www.arpearlmanlaw.com.

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