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Tax sale properties are fast becoming a great investment for those seeking to own a real estate someday or make big profits from it. Also, the sale of properties is fully backed up by the government, which gives security for interested investors. Before investing however, you need to make a game plan on where to get tax sale information. Here are some ideas:
a. You need to determine if the state that you’re targeting offers tax lien or tax deed, or both. You can get this information via the county clerk’s office. Go to their nearest office and ask them if the state offers tax liens or tax deeds. They can even provide you with helpful pamphlets on how to invest in tax sale properties in a state.
b. You can also get information online via the internet because there are tons of data available that you can use. Today’s sophisticated technology not only has speed things up but also made investing in tax sale properties convenient with the aid of buying tax liens online. So, utilize the internet as a free resource for your tax sale investment plans.
Now that you know where to get tax sale information, you can start investing in this very lucrative real estate opportunity. Also, don’t forget to do due diligence always because without it you might not succeed in tax sales investing.
Tax lien certificates investing is one of the most lucrative investments to make in the real estate industry. You can participate in a tax sale and win tax lien certificates which can provide you a new home or resell it in the future for more profits.
Here are two reasons why you should invest in tax lien certificates:
-When you invest in tax lien certificates, you’re going to get your investments back together with high rate of returns. This happens if the homeowner decides to pay up his back taxes plus the interest and any fees. However, if he fails to pay his taxes within the redemption period, you can foreclose the property and own it for just its amount of delinquent taxes and fees. Now that is great to hear!
-Rest assured that when you invest in tax lien certificates, you are going to get a safe rate of returns on your investments. Take note that this type of investment is handled by the government, so there’s nothing to worry. Interest rates ranging from 16-24% are guaranteed, which varies from state to state.
Many wise investors put their money in tax lien certificates because of the obvious reasons that guaranteed rate of returns are sure to come. Also, the possibility of owning a profitable property is waiting for anyone who wishes to join a tax sale. So, do due diligence on tax lien certificates for you to take ownership of a free and clear property.
What are tax sale property investments? If you conduct a few researches on the topic, you’re going to stumble upon lots of information on the internet. However, there are still some buyers of real estate that do not know yet the basics of tax sale investments. Little do they know that this type of investment is backed up by the government, who holds the sale and collection of delinquent taxes. This simply means that the whole process is legal and secured which assures you of profits.
For you to have a clear idea of what tax sale property is all about, let us first discuss its beginning. When a property owner fails to pay his tax dues to the government, his home would be put up for sale to the public. This is a necessity because the county needs the revenues generated from the delinquent property taxes in order to run things smoothly. This is the time when the county issues either a tax deed or tax lien to the property of the delinquent homeowner.
A property facing tax deeds or tax liens problem simply means that its owner needs to pay his back taxes in order to clear his tax debt. An investor is going to make profits by either buying the deed to the property or paying for the liens of the owner. In which a nice interest rate and principal investment is waiting after the redemption period.
The money invested in tax sale properties is totally secured since the auction is backed up the government. This is a really great way of earning profits especially in today’s tough times. So, act quickly and do due diligence on tax sale properties.
If you want to be a real estate investor who wants to specialize in tax sale overages, do you have what it takes to be credible in this business? If not yet, then you could be easily losing potential clients at the moment. The tax sale overage business is something where credibility means a lot to both claimant and clients. So, to help you establish a credible career that is worth doing business with other people, make sure to check out the following factors.
Make sure that you have an 800 number because this would go a long way with potential claimants. Your client would right away see you as a real business to deal with. Also, they can easily contact you and vice versa when the time comes for the overage to be claimed.
You also need to put up a website. This is important so that your clients can search for you on the internet and be able to find your business. Creating websites are quite inexpensive and simple nowadays so it won’t cost you a lot of money. Many property investors in the business of making profits from tax lien and tax deed overages have also done this, so why not do it too.
It also helps to have a credible looking business card and other related materials that can help you establish trust with clients. Printing these things does not cost that much, especially today that businesses who do this have lots of competitors. You can easily look for the cheaper ones who would gladly do the task for you.
You are going to need as many of the mentioned factors above in order to solidify your credibility in the tax sale overage scene. These things are not that expensive to do. Getting a potentially huge deal with a claimant can easily cover your expenses. Furthermore, you can do this business at home which let you save lots of money in the process.
The money you need to start in tax liens investing is going to depend on the goals that you’ve had in mind. If you see tax liens as a means of investing for the days to come, then begin with a few hundred dollars. However, if you want to make a steady income out of it, then you’re going to need more like a couple thousand dollars. You must keep in mind though that tax lien investing is not something that can get you rich quickly. Remember that investing in tax liens can only give you profits once the taxpayer decides to redeem his or her lien. This would only happen when the redemption period is done, or notice of foreclosure is served to the delinquent property.
It is strongly advised for you to attend a couple of tax sales before bidding on the actual properties. Through this you would have an idea on how much money you’re really going to need to start investing in tax liens. You must also observe how seasoned bidders prepare themselves financially for a tax sale. The prices of the liens up for grabs are not a joke since many nice and profitable properties are on the list of tax lien states. So, you need to be ready for these things, and have a decent amount of cash in your account in order to get the property you want.
By now you have probably bought a few tax liens or deeds in your area, and have decided to explore other states through online investment. You might also have heard from peers or fellow real estate investors that it is very possible to purchase tax liens or tax deeds online. And that you want to try it too. Before you begin to buy tax liens and deeds, here are a few information that you need to read.
-You must have a bank account in the United States. This is required in order to join a tax sale online.
-You must also have a tax ID number.
-You are also required to register and deposit an amount before you’re allowed to participate in the online bids. Do this as early as possible.
-As always, conduct due diligence on the properties listed in the sale. If you live far away from the property, take a look at it via Google Earth or using a satellite photo. You can also ask a friend or someone to take pictures of the property. Also, do some research on the property’s new market price as well as its tax assessment data.
Remember these to help you buy tax liens and deeds online which is a convenient way nowadays.
First is to research for the interest rate of each state and the county conducting the tax sale. It is the interest rate which the county charges the homeowners, when they fail to pay their property taxes on the specified time. It is also the rate in which the tax lien investor would acquire on the amount of the lien if it is not bid down at the sale.
Second is to know the bidding procedure on each state because they differ with one another. You need to study if the interest rate on every state is either bid down or up. Do the research because the bidding procedures can affect the interest rate that you can receive on the lien.
Third is to do your homework regarding the length of the redemption period for each of the tax lien states. This is also important because you are going to know how long the homeowner needs to redeem the lien before you can foreclose the property.
These are just some of the important things that you need to know about tax lien investment. There are even more that you need to research. Never forget to do due diligence so that your hard earned money won’t go to waste.
If you are interested in placing your bids at a tax sale, first you must need to learn how to find the tax delinquent properties. Most counties and states thankfully make it simple to share this information to the public. You can find these data on their websites, their office, and on the local newspapers. Start your research for whatever information you can find on the auctions scheduled within your area. It is crucial to check out first the background of the properties listed on the sale. Do not make the mistake of purchasing a property without knowing exactly what you are doing. This is to avoid mistakes that may hinder your real estate investment goals.
Take note that a tax sale does not exactly work like the traditional way of purchasing a property. You would be expected to pay up front for the property that you’ve won on the bidding. So, secure whatever financing you have or risk losing the property to other bidders. It may still take some time though for you to acquire a deed on the property before it would be fully yours. Remember that during this time you only have the tax lien certificate as proof of covering the taxes for the delinquent homeowner. After you get the deed, only then you can do whatever you wish with the property.
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