The most basic rule when investing in real estate is conducting a complete investigation process. This would greatly help in knowing the auction process which includes terms of payment, forms needed, schedule of the sale, location of the properties advertised, and fees.
You must also find out if the properties can be bought online or in person, people in charge of the sale, and availability of over the counter liens. Remember that these are mandatory information that must be accomplished before you are ready to invest in tax lien properties.
There are times wherein you can find gems in left over tax liens. It is because tax sales sometimes have so much competition that it would be best to forego the auction, and buy left over liens instead. The county has plenty of left over liens which were not sold during the sale, and buying them can give you the best returns.
Left over tax lien investing is a practical way of avoiding the competition. The big investors sometimes overlook those tax lien properties offered during the sale. It is now up to you to grab those properties. You just need to be keen in doing your own research on those sold over the counter. Get the most maximum interest rate from these properties, and make a decent return on your investment.
Ever heard of tax lien? How can it affect you financially? A lien can affect your assets, both present and future that you may acquire. This would include mutual funds, stocks, bonds, property, securities, and even vehicles. Your capacity to gain new credit is greatly affected, once an IRS tax lien search is conducted against you. Creditors may deny you new application for credit and increase interest rates or the current ones.
Furthermore, if you are a businessman, the Internal Revenue Service would lay claim against your business. This includes accounts receivable. You would not receive profit even though your business continues to operate.
Now that you’re the holder of the tax lien certificate, you need to know the following in order not to waste precious time and effort. If the homeowner is able to pay promptly, you can earn the interest rate set by the county. The interest is counted monthly. So, the amount of interest you’re going to receive would depend on how many months you’ve waited within the redemption period. Wait until the homeowner has paid off his tax debt.
In the event that the redemption period has come to pass, and still the homeowner hasn’t paid, you can foreclose the property and apply for the tax deed. This way you can get your return of investment.