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The Internal Revenue Service, or commonly known as IRS, is going to serve you a Notice of Federal Tax Lien if you owe them back taxes. In case you haven’t experienced this yet, it would be a very disastrous situation to be in. You would not be able to purchase a new property, car on credit, and borrow against your assets. A tax lien would definitely destroy your credit. And if you do not pay your tax bill on the said deadline, the IRS would file a notice of your debt in record at public offices of the counties you operate. However, you are given an opportunity to pay the IRS or negotiate a settlement. After all, the most appropriate decision is to avoid IRS tax liens.
There are ways for a tax lien to be released though. Here they are:
-Pay in full your tax debt
-An offer in compromise in which the IRS agrees to
-Ending of statute of limitations
-Filing for Bankruptcy
In thirty days, a certificate of lien release should be sent to you, and the lien filed against you must have a certificate. If there are none, then request from the IRS office where it was filed. Remember that you have the right to a hearing and can contest the lien. You may also appeal to the Federal district court or United States tax court if you are unsuccessful in avoiding the lien.
Are looking to invest in something profitable other than the stock market? Some type of investment that would earn you nice profits even when you’re away from the country? Investing in tax liens would surely help you achieve these things. You can even do it online.
Tax lien investment offers a golden opportunity for you to bid and purchase profitable properties online with just a click of your mouse. Online tax sales have been going on for counties and states in the US for quite some time now. Then, there are tax lien certificate sales being held by some counties which are available online for interested investors. You just need to check their websites though as well as the states offering online tax lien sales.
Before placing your bids in an online sale, make sure to do due diligence first on the properties you want to buy. It is because online tax sales are pretty quick. Good properties easily get picked so you need to register as early as possible and place your bids. So, invest in tax lien sales online for you to have a better alternative of doubling your profits in a convenient way.
Do you know one of the reasons why investors purchase tax deeds? It is because the properties in the tax sale have equity in it. Even, if the property needs to be repaired or demolished to make this equity. Furthermore, the owner of the delinquent property has lost this after resulting from the sale. Savvy investors are going to earn nice profits out of this by making direct contact to the owners and buying their properties before the sale.
Making an offer directly to the property owners is a wise thing to do, since a decent amount of money is better than losing it all to the tax deed sale. Distressed properties are likely to be saved by using this method. Plus a motivated investor with creative financing strategies can come up with ideas to flip the properties for more profits.
Owners who would sell their properties to investors before the tax deed sale, gets their last chance of getting something in return of not paying the taxes. The property owners get some profit out of it too. So, everybody wins in a pre-sale purchase of properties.
Did you know that there is another way of making money from tax sale properties aside from attending an actual auction? Research for tax sale overages and reunite them with their former owners, and you’ll surely be earning nice profits. Overages occur when an investor bids excessively for a property than what was actually owed in taxes. The overages or also known as extra funds are due to the owners. However, some of the previous property owners leave the money behind without any idea that it exists. Then, after quite some time, the government gets to keep the funds if nobody comes in to claim them.
You can charge thirty to fifty percent as finder’s fee on these funds due to a legal loophole. This is fine as long as you know which of the overages are alright to go after. There are tons of opportunities waiting for you here to get nice profits, by just helping the owners get some of their money back. With the steady foreclosure rate today, there are so many overages sitting in government offices that are about to be lost forever. So, make sure to grab this chance of making money without the need to attend a federal tax liens sale or tax deed sale. Don’t let it pass by.
Iowa has an interest rate of 24% per annum. You must take note that at the tax sale, the rate isn’t bid down. However, should the lien not be redeemed, the property’s percentage ownership is bid down at the sale. Also, the property investor wins the tax lien if he takes the smallest percentage in the real estate.
The interest rate in Illinois is 18% but it is not per annum which is unlike other states. However, there is a six month penalty that makes your annualized interest rate to 36%. Also, take note that the redemption period in Illinois is three years.
Texas is a redeemable tax deed state. The good thing about it is that you are able to get a penalty when the deed redeems. You also acquire the full penalty and not just the fraction. It is different with liens which only gets an annualized interest rate. Furthermore, the penalty for the first six months is 25% and 50% for the first year.
These three states have the top interest rates in the US. But then, there are also those which also have the decent numbers that you can capitalize on. Just don’t forget to do some research about them too for you to see the growth of your money and property investments.
If you want to be successful in your tax sale investment plans and have the money to back it up, you may require the help of a support team. It also helps to have a team to help in your goals of investing affordable properties. So, who are you are going to look for?
If you have so many properties acquired through a deed or lien transaction but do not have enough time to manage them, then you are going to need the services of a realtor. The realtor can help you sell or rent the properties to others in order to make nice profits out of your investments. Doing so enables you to free up additional time to purchase more tax liens and deeds.
You need to know that there are tax deed states that do not issue a warranty deed after the sale. This simply means that you must clear the property’s title before selling to an interested buyer. So, for this situation you are going to need the services of a lawyer who specializes in clearing titles. Then, there are also cases wherein a lawyer is needed to foreclose a property in some tax lien states. You can do these things yourself but the lawyer can help you with the deadlines as well as speed up the process.
Other members of your team may include a title searcher, accountant or bookkeeper. You also need them to take care of your paperwork which is important in a tax lien and deed transaction.
Once you’ve bought a tax deed or tax lien certificate, you must protect it in order to maximize your profits. Do you know how to protect your tax sale investments? If not yet, then it is time to read this.
-Clear the property’s title
-Foreclose the right to ownership if no payments were made
-Make sure to record your deed or lien with the county clerk’s office
-Pay the corresponding taxes of the properties in question
These are some of the tasks that you need to do in order to protect your investments. Whether you are investing in deeds or liens, you need to study each one so that your money and time would not go to waste.
Click Here To Get Your Free Tax Lien Training System ($77 Value)
- Exactly How To Start Buying Tax Liens Today
- Tips For Tax Lien Auction Success
- How To Avoid The Mistakes New Tax Lien Investors Make
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