Tax Liens is Not for Everyone

Almost everyone is dreaming of a good life and good earnings. Tax lien investing is one of the good things offered to anyone but sad to say tax liens isn’t just for everyone who would want to earn more. This requires a lot of knowledge, time, and most importantly the money. These 3 needs to come in package to make sure you’re in a good path. It requires knowledge of the county’s rules on where you’re going to invest to understand the process.

We have to remember that each state have their own rules and regulations in their tax lien investing. This also requires time to call or to visit the county to get the full details of the property because most of the time information’s posted online is not updated real time. If we have the knowledge and the time we should not miss the last and the most important one, the money. This is the very main reason why not all people no matter how much they wanted they can’t get into this so called tax lien investing.

This kind of investing requires hard cash and on the spot cash. Although there are some counties that give time to some investors to pay the full amount in a pre determined amount of time. Usually between 24-48 hours. These are all the things we need to prepare if we want to enter the world of tax lien investing. Tax lien investing is one of the most wonderful opportunities for anyone however this isn’t for everyone.

Tax Lien Certificates Investment Advices

You can make lots of cash from investing in tax lien certificates most especially if you really know that you’re doing. It is because tax lien investment requires knowledge on how the entire system works as well as due diligence. In order to do this, you need to follow these advices.

Homework & Research
You must thoroughly find out all about tax lien investing before making your moves. You should identify first if the state that you’re targeting belongs to the tax lien states or not. Make sure that you know what requirements are needed in order to purchase the lien and evaluate the potentials in how to get your money back plus interest. Find out the laws, rules, and regulations of the state and county in which you are planning to purchase the properties. In short, do the necessary homework.

Cash Investment
Ready your cash because you would be in a lot of fun with tax liens. It is because there are times when you can purchase a lien for as little as a few hundred dollars and some are really affordable. Take note that the more cash you have the more money you would make which makes it enjoyable.

Property Search
Now that you have the cash, it is time to find the properties you’re going to purchase as investment. You need to acquire a list on all available lots and select the ones which can give profits. Avoid those properties which have environmental issues for it may ruin your chances of earning.

Therefore, before investing your money, make sure to take into consideration the advices above in order to get the tax lien properties you want.

What is a Tax Deed Auction?

In the United States, a property owner who does not pay his taxes religiously would face the risk of having his home taken away by the government. The delinquent property would then be put up in a tax lien sale because of foreclosure or via tax deed sales.

A tax deed sale is a common way for counties in many states to acquire their property taxes and regain lost revenues. Moreover, it is a good way for tax deed investors to get a home with huge discounts which are usually below the market value. This is great news since many people nowadays are looking for a safe and secured investment with amazing return of profits.

You would find lists of tax deed sales in your area when the county publishes it on newspapers, which is usually three to four weeks prior to the scheduled sale. However, due to the convenience that the internet provides, you can find and get these lists for free which are also scheduled for tax deed sales online.

You need to fill out a form and get your corresponding bidder number in order to participate in the auction. Some of the counties do the registration process a few days ahead of time while others on the auction day itself. Furthermore, you need to submit proof of funds as well as bring cashier’s check or cash so that you would be allowed to join.

The simple rule in a tax deed auction is that the highest bidder wins. Also, in a few weeks time receives a sheriff or treasurer’s deed from the county department in-charge of the sale. Whoever wins would be the new property owner and can choose to sell it for more money or take possession of it.

Cash Your Tax Deeds with This Method

It seems that everybody now knows the amazing deals you can get from purchasing tax deed delinquent properties.  This is good news but it also means that unfortunately the industry has become overcrowded.  It has become quite difficult to acquire great bargains from tax deed sales properties due to this reason.  If you are looking to cash in on profitable tax deeds, then you may need to do it in another way without actually owning a tax deed property.  So how does this work?  Read on to find out the answer.

There is another way to make money from tax deeds.  There are only few people who knew this simple method of earning huge profits which can be conducted remotely from almost anywhere in the planet.  Also, it is one of the best ways of cashing tax deeds and is cheap in terms of operational expense.  It is called tax deed sale overages.

Tax deed sale overages are created when there are more bids on a deed than what is actually owed in back taxes.  The overage is held for the homeowner to collect for a specified date before it would be permanently lost to the government.  Oftentimes, the homeowners assume that they have lost everything when not paying the property taxes but do not realize that there is a large amount of money owed to them.  Unfortunately, most of these homeowners would not figure this out.

These funds are not subject to state finder’s fee because they are not held by a state agency.  So, you can legally charge 30-50% as money finder’s fee per transaction.  The homeowners are more than glad to pay you the money, in which otherwise they could have lost due to a tax deed auction of their properties.

Tax Deed Sales Basics

Property taxes are the primary source of income for the local governments.  It is required for every homeowner to pay their taxes diligently on time.  If one fails to do so, the local government would possess the property and conduct tax deed sales in order to recoup for lost revenues.  This can cause a lot of problems to the homeowners because they can potentially lose their properties.  However, the law provides a redemption period to the homeowners in order to redeem their homes by paying the taxes owed plus other fees.  Investors looking for homes can purchase these tax deeds at a low cost, which are usually cheaper than compared to those on the real estate market.

Tax deeds begin when homeowners fail to pay their property taxes to the local government.  The government then takes their home and puts it up for sale in public for non-payment of taxes.  The money they get from the sale would include the taxes owed, court fees, interest, and other costs.  The government announces the tax deed auction which attracts bidders from all over the United States to come to the event.  The rules are simple in which the investor that bids the highest wins the property.  The successful investor usually acquires the property at a price lower than its market value.  He will then pay for the taxes owed by the homeowner but would surely get high returns after the redemption period.

It can be quite difficult to say that investing in tax deeds comes without a risk.  Same with other businesses, it helps a lot to be cautious about the whole process.  This simply means that investors need to be extra careful in getting the right information prior to buying tax deeds.  Be diligent and always do as much research as possible in order to determine the required information to be able to succeed on investing in tax deed states.