There are lots of counties in the United States and each of them conducts separate auctions for tax liens. Most of these counties have websites where you acquire a list of tax liens available, date of auction, and answers to frequently asked questions. You can get these resources for free or at a price.
While there are a number of approaches that you can do at this point, the first thing to do is to conduct a research in your own county. Go through the treasurer’s page on the website and find out the following:
-The date of the tax lien sale
-The location of the sale
-List of properties to be auctioned
-Rules of the sale
-List of unsold tax lien properties from previous sale
Once you acquire the information, set a schedule and the budget you’re going to need to buy the liens to the properties.
Investing your hard earned money in tax lien is one of the best methods to build a constant flow of good income in your real estate plans. It would take a lot of research though to learn the ropes however, your efforts are rewarded well enough. You can easily earn up to twenty percent on your investment with almost little to zero risk whatsoever.
Basically, counties in the United States raise money by taxing the property of a homeowner. If the homeowner fails to pay his taxes, the tax amount becomes a lien against the property. The great thing about this is that the lien supersedes any other judgments against the property. This also includes the mortgage. This simply means that if the homeowner does not pay property tax, then you as the holder of the lien acquire the title to the property. Ahead of the bank that holds its mortgage. With this, the bank itself would pay the lien off just to protect their investment, even with any interest.
In the first place, why do the counties sell these liens? It is because they need the money from taxes, in order to pay for schools, police, hospitals, and other public services. Each and every county is authorized to collect the taxes due by statute, which remains unpaid by selling at public auctions. It is either a tax lien or tax deed. So, invest in tax liens because the income is real and can provide a lasting flow of cash in your pocket.
If you do not have the time to attend tax lien sales in your area, there is always the opportunity to buy properties online. Search for counties that offer these types of sales and you can register for it. It is always free to register. Take note however, sometimes a deposit is needed before you can actually bid.
Register for the tax sale, read the terms, acknowledge the rules, and don’t forget to do your due diligence on the properties. Even online you can watch what happens to the properties that are being bid on by other investors. This would give you the confidence to bid at the next tax lien online sale. It would also give you a feel of what the competition is like.
If you are keen in purchasing property for its back taxes, then consider yourself a wise real estate investor. Investing in back taxes of a property is the most profitable task you can do. However, as more people are going to find out about this lucrative investing method, tax sale on delinquent properties are getting crowded with competing bidders. Furthermore, it is getting difficult to acquire good deals anymore. So, if you want to be successful at getting tax delinquent properties, here is how you can purchase them for the back taxes, without the hassle to compete against other bidders at the sale.
There is a “loophole” strategy that allows you to exploit tax deeds or tax lien properties for profit. You can do this before they end up in public auctions. After the property is sold at the sale, purchase it directly from the owner. In most places, you can legally pay of the tax bill on the property, during a specified redemption period. As you may already know, most property owners are emotionally exhausted from dealing with their financial problems. They are willing to just move on and let go of their properties. It is during this time that you can make an offer on their property for a modest price. Simply pay off the property’s tax bill and you’ve got yourself a return of investment.
When there are more bids for a property at a tax deed sale than is owed in back taxes, the funds or overage amount is originally due back to the owner of the property. Unfortunately for these owners, many have ignored communication with the government. They miss the notice of the overages and just move on and leaving them behind. The outcome is that the overages are permanently lost to the government.
There is a legal loophole that exempts these funds from having finder’s fee caps. You can locate the homeowners and charge 50% in finder’s by helping them get the unclaimed funds. With this method, you can earn a five-figure income just be connecting the homeowners with their overages. The profits are possible especially with the number of foreclosures rising up every year.
Buying tax deed properties at foreclosures is surely one of the best methods to get bargain homes and profits. Most property owners want to avoid a foreclosure because of its financial consequences that can leave a negative credit posting. That is why you must approach these property owners with the intention of helping them get out of a bad situation.
However, it is not your responsibility to solve the financial problems of the homeowners. You are there to buy their properties and make profits. Acquiring the tax deed properties at a fair price is the goal. Get the facts and check their accuracy prior to making any formal offers. Create a back-up plan to keep you from unanticipated issues that may arise along the way. Always check the title before, during, and after dealing with the seller. Set a desired budget for each property you’re interested. Prepare the necessary requirements and do research whenever you can.
Any person, who can legally own a property in the United States, can buy tax lien certificates at public auctions. However, it is crucial to thoroughly inspect and survey the area where the property is located prior to buying the lien. Most especially if it is a tax deed wherein there is a high possibility of the title being transferred to the owner of the tax lien certificate.
Delinquent sales on tax lien certificates are becoming popular and quickly catching up in the real estate industry. However, tax lien certificate is not advertised well enough for everyone to know and be interested in them. Interested investors might have to search far and hard as well as digging into knowledgeable sources to find good deals. It is a great way to tap into opportunities that can help you succeed, and one of these is being in touch with a real estate expert. You must know that there are already many people that have acquired highly valuable pieces of property. You can also get these properties at inexpensive prices via tax lien certificate buying.
If it is your first time to get into the lucrative investment of tax deeds, then try to visit as many websites on tax sale information as you can. Also, check out every book on the subject that you can get your hands into. There are many great resources that you can take full advantage of with the free information they can give.
The key to a successful tax deeds investment is to conduct your homework on the properties you’re interested. Then, talk to someone who has vast experience in purchasing tax deed properties. Having an experienced real estate investor’s tips, strategies, insights, and knowledge would also help you reach that investing goal further.
Investing in tax deed is basically the same deal with tax liens. Homeowners who do not pay their property taxes would also face the consequence of losing their home. But instead of the county placing a tax lien on their property, the government actually sells the deed. That is why in tax deeds investing you do not get interest on your money but acquire ownership of the property, free and clear. You can then make more profits by selling the property at a market value.
If you do your due diligence, finding tax deed properties can be rewarding before they even get to a county auction. You can purchase these properties directly from the homeowners for pennies on the dollar. Avoid the hassle of joining a tax deed sale.
The interest rates are quite high for some states that hold tax lien sales. How high you ask? Is twenty-four percent every year high enough for you? Though, it varies from state to state. Also, with tax lien investment, you either get a high rate of return on your investment or acquire the property. That is a lot better than the stock market.
Another good thing about tax lien sales is the prices. You can get bang for the buck properties which are usually in the range of a hundred up to a thousand dollars. This is easily within the reach of an average property investor. Furthermore, in tax lien investment, there are no special licenses or requirements needed for you to begin.
Now that you know the nice interest rate and prices in tax lien sales, the next thing to do is find out when and where the auction is going to happen.