Tax Lien Properties Investing Tips for Alternative Income

More and more people are looking for alternative investment strategies today in order to make some money. This is especially true since there is an economic crisis in the United States. This is the reason why tax liens investing is one of the most interesting alternatives that fit this category.

While this may look like a way to take advantage of other people’s misfortunes, but it’s nothing more than presenting another opportunity to make money for investors. If you’re tired of the usual day time job, then this could be your way to financial freedom. Here are some tips you can utilize to increase your chances of having a bright future.

Concentrate on Smaller Counties
If you are always looking for tax lien investing opportunities in highly urbanized areas, then you would be having difficulty in getting the best deals. Focus on smaller counties instead and you would have lesser competition. Though this requires more research but expect that the profits would be worth your time and effort.

Research Ahead
You would always be ahead of the competition if you make more effort in researching ahead of time. Look into the properties in question and do some background checking before the auction day arrives. It is also recommended to know the location and figure out how much you can afford to spend on a piece of land. In other words, do your homework.

Consider tax lien properties investing as an easier alternative because it is safe and secured. You would get the assurance that the whole process is legal because it is looked over by the government.

Tax Deed Sales Bargains

Tax deed sales are the way to real estate bargains that just keep coming. Public auction of tax deeds include residential land, expensive homes, condos, and even raw undeveloped land. These present a great opportunity for those who are looking to buy high value lands for affordable prices.

It must be clarified first that tax deed sales aren’t bank foreclosures as others have thought so. These are government foreclosures done by the county as an outcome of the homeowners’ failure to pay their dues in a timely manner. In government foreclosures, a few hundred dollars is only owed which you can invest easily, unlike in banks wherein thousands are being owed.

The delinquent homeowners is given a period of time to redeem their properties. This is called the redemption period. They have a chance to get back their homes by paying the back taxes plus interest and other fees. If they fail to do so, the investor of the property can foreclose it thus owning the tax deed or have the right to sell for huge profits and bargains.

Tips on Purchasing Tax Deeds

Buying tax deeds can be a blessing especially if you have done your research which can grant great deals.  The very first step in the due diligence process is to acquire a list of parcel numbers from the county office.  This list can be quite confusing in the beginning and once you get it, go to where the county assessor or auditor is located.  Many counties in the United States have this data online.  If it is not available via the internet, then you would need to go there in person and get it.  You can also hire a title company if budget permits to do the task for you.

The second thing that you need to accomplish is to acquire a plat map and take a visit on the property you’re interested.  Take your camera with you and also notes for points to jot down.  The key here is being organized in everything because thinking about various properties during a tax sale can be quite confusing.  This is when your notes, photos, and maps would come in handy.

Therefore, you need to be wise, careful, and diligent when attending tax deed sales.  It never hurts to do extensive research first before the actual auction.  Also, by doing this you would avoid committing mistakes that may become costly to your budget.  Great deals on tax deeds would surely be yours if you follow these tips.

Consider Investing in Tax Deeds

Majority of the people today are becoming aware of the advantages of tax deeds investing but only a few understand the process. They do not know yet how to begin and doesn’t possess the skills needed to make a start. However, investing in tax deeds can be developed with constant practice and experience over time.

For starters, a deed can be issued on just about any kind of real estate which includes raw land, commercial and residential properties, agricultural land, developed lots, and condos. The taxing authorities do this because of homeowners who do not pay their regular property taxes. This can be turn into a profitable business because you can buy them as investments and sell it later on.

You can bid on a tax deed property during an auction. If you win the bid, the deed of the property would be in your hands. The homeowner still has a chance to redeem it though but he has to pay you the taxes owed plus interest and other fees. If he has failed to pay, then you can foreclose the property or own it. This is the way that you can make extra money through tax deed investing.

Tax deeds prove to be a very profitable business with high returns. You can have valuable assets in the future if you choose to invest in it. Just know the basics, study the process, and research on the laws of every tax deed state in order to succeed.

Tax Lien Certificates Investing Alternative to Stock Market

Tax lien investing is a great alternative to investing in stocks and today is a good time to invest in it.  You can potentially get double digit returns without putting your money at the mercy of the market.  Put your investments in tax lien certificates and the interest you make on the liens doesn’t fluctuate.  Furthermore, the county or municipality that issues the lien guarantees it.

The reason why you would want to invest in tax lien certificates is because of the interest received from the investment.  You can acquire from 8% up to 36% interest without a high degree of risks unlike in the stock market.  Also, you can foreclose the property you’ve bought if the delinquent taxpayer doesn’t pay off the lien within the specified time or redemption period.  With this in mind, the tax liens are secured by the real estate that it is held against.  You can surely start with a small amount of money with this business.  A tax ID number is all you need to buy a lien and there is no need to hire the services of a broker just to invest.

There are other things that you need to consider.  Do due diligence first before purchasing a lien.  Understand the conditions and terms of the tax sale as well as the bidding procedures.  Each state has its own set of rules and they vary differently and that is why you must thoroughly know the details of the sale in order to win.

Do remember though that you must only purchase liens on good properties and make sure to get your invested money out of it.  You would get paid on your tax lien through the property which makes it a profitable business, and can be quite simple to understand as you go along the process.