Investing In Tax Lien Certificates
Investing In Tax Lien Certificates
Investing In Tax Lien Certificates have made some friends of ours some great extra income. My husband and I are also looking to earn money, we realize buying real estate by investing in tax lien certificates would require us to do some major home repairs but we are looking to do rentals and flips. Any help would be appreciated regarding others who have experience with investing in tax lien certificates.
5 Easy Steps to Investing Tax Lien Certificates
If you spend some time researching, you’ll find that investing in tax lien certificates is a relatively safe, accessible, and lucrative investment opportunity. Investing in tax lien certificates can provide multiple streams of income from interest, penalties, and purchase of properties at pennies on the dollar.
Investing In Tax Lien Certificates Sound Like A Sure Thing.
Watch the TV gurus about investing in tax lien certificates and you know you’re guaranteed to make huge interest rates and that it’s government guaranteed, don’t buy all the hype, like all investments do your due diligence. The infomercials about tax lien investing leave out a few facts and stretch the truth quite a bit. Investing in tax lien certificates can be a relatively safe investment, provide a great return on your money,but the catch? A lot more people are investing in tax lien certificates now compared to 5 years ago, and the bids are pushing down rates of returns. Even in small counties, you may be surprised at the number of investors that show up to bid at tax lien auctions. Several are in partnership with each other and you can be taken advantage of if you are not careful.
Tax liens are handled a little differently in each state, but they are essentially the debt that a property owner owes when property taxes are late. Investors buy these tax liens by paying the unpaid taxes after winning the successful interest rate bid they offered on the tax lien certificate. Property owners are forced to pay the tax lien with your interest bid and penalties or face loosing their property. Each state has different laws that govern the amount of interest required to satisfy the lien. In Michigan, the interest rate can be as high as 50%.
While it is true that the property owner will pay up to 50% interest and the county will forward that money to you as the lien holder, you don’t necessarily get to buy the lien at face value. It used to be a few investors in any given county would more or less divvy up all these great little investments among themselves but things have changed. Know institutional investors are showing up at these auctions and it is much more difficult to get top returns, if you are not educated and experienced in the process.
Buying Tax Lien Certificates
1. Call your local county and request information on buying tax liens. The process can be different from county to county. Some counties don’t sell tax lien certificates; instead they sell tax deeds.
2. Preregister for the tax lien sale of your choice.
3. Find out the available method of payment for the liens.
4. Attend the tax lien sale, and double check the accuracy of the county lists.
5. Be sure to find out the laws and timing of tax lien redemption.
Here Is A Great Online Course about Investing In Tax Lien Certificates
Tax Lien Investing Basics Online Course – How to Get Started Investing In Tax Lien Certificates And Tax Deeds. The Course comes with Audios, Manual, And Resources. If you are considering investing in tax lien certificates you should invest in this course so you never get taken advantage, and earn top profits.
A Perfect Book To Learn How To Invest In Tax Lien Certificates
Profit by Investing in Real Estate Tax Liens, is the only tax lien book written by an actual tax lien investor. This book has been the top-selling tax lien book since its first release in November, 2004. In this second edition, attorney and tax lien investor Larry Loftis teaches how to invest in tax liens, tax deeds, and he provides insightful, first-hand experience from his purchases around the United States. Having purchased millions of dollars of liens (and deeds) in 12 states and attended auctions in 5 additional states, Mr. Loftis provides stories from different locations around the country, giving tips on how to avoid risks, and how to beat the competition.
Profit by Investing In Tax Liens also debunks the common myth that tax liens are found only on run-down properties, and shows liens exist on every type of property. Author Loftis, who has purchased liens on properties owned by famous athletes like NBA stars and world champion boxers, national banks (like Chase Manhattan Bank and LaSalle National Bank), and even a building whose major tenant was the local sheriff’s department, reveals that he has seen liens on properties owned by a 9-time Wimbledon champion, a 3-time Masters champion, a Cy Young and World Series winner, a movie icon, an international celebrity athlete/model, and even properties owned by cities, the U.S. Post Office, and even the U.S. government!
In this authoritative guide, Loftis helps investors avoid the pitfalls while answering all the key questions they need to consider:
* What states are lien states and what states are deed states, and how do they work?
* What about the “hybrid” (as Loftis calls them) states like Texas and Georgia?
* How does an investor go about bidding at tax sales? And what is the due diligence required?
* What are the different requirements in each state?
* Where are the risks in this type of investing, and how do I avoid them?
* How long do I have to wait to get paid off, and what rate of return can I expect?
* How are counties selling liens and deeds using internet auctions, and how do I start?
- Tax Bills Squeeze Small Firms (online.wsj.com)
- TAXES ARE FOR THE LITTLE PEOPLE: Personal financial woes on file for Cook County recorder. “The Co… (pajamasmedia.com)
- Investing In Tax Lien Certificates
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