Online Tax Lien Investing

Online Tax Lien InvestingThe real estate business is one of the most diversified in terms of investments. It is because there are so many types of properties in which people from various groups of buyers can focus their money into. One such investment type is tax lien investing which can also be done online.

Gone are the days when you wait at the county office for properties due for auction. Nowadays, you can easily participate in online auctions for tax lien properties. The bidding process is pretty much the same. Though, the interest rate still varies from state to state. However, with online bidding, it is easier to get the properties at affordable prices for the taxes owed. Take advantage of this opportunity.

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Tax Lien Sales Work This Way

thisAs a means to make up for lost government revenues, the county offers tax lien sales of delinquent properties to the public. The county does this when faced with non-payment of property taxes from homeowners. Tax lien sales actually offer just a certificate that is sold during the auction, and not the actual property.

In a tax lien sales scenario, the buyer of the certificate is basically lending money to the homeowner to pay his tax debt. In return, the homeowner must pay back the buyer, which includes all taxes accumulated, and the total penalties. Failure to do so, would allow the lien certificate holder to foreclose the property and claim the deed.

Supplementary Income from Wholesale Tax Lien Properties

Supplementary Income from Wholesale tax Lien PropertiesWholesaling tax lien properties is a good source of extra income these days. But first let’s define what the wholesaling term means; it is acquiring a property at a discounted price, and moving the property to another interested buyer for a price well below the market value. It is usually with little or no rehab work done.

Wholesaling not only cover selling the properties you’ve acquired to buyers but also finding a motivated seller in your target niche. The motivated seller could be someone who lost a job, in credit card debt, needs cash, tax lien, in dire need of a short sale, going through divorce, avoiding foreclosure, and many more reasons. Locate them and explain the benefits of selling their properties quickly to a real estate investor such as you.

Invest in Tax Lien Properties with Knowledge Beforehand

Invest in Tax Lien Properties with Knowledge BeforehandSome investors may have mastered the concept of investing in tax lien properties. They already have ideas and strategies on how to bid for tax liens. Nevertheless, for those who don’t have any clue yet in real estate, this topic may appear unfamiliar. And as far as application of the process is concerned, it can be difficult for them to do the actual process.

It is crucial to be informed on the aspects of tax lien prior to investing because money is involved. To be a smart investor, one must be aware on each penny spent, otherwise lose financially. That is why research and analysis, coupled with due diligence, is a must in order to achieve profits and return of investment.

Less Competition on Left Over Tax Lien Properties

Less Competition on Left Over Tax Lien PropertiesThere 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.

Tax Lien Certificates Investment and Risk

Tax Lien CertificatesTax lien certificates as a superb investment strategy for young and old alike, have seen a rise in popularity over the years. Many see the potential in it because of how to easily to acquire one. Plus, the opportunities of getting high returns which is very attractive.

However, you need to know that there are always risks involved in this type of investment. But the negative effects of these risks can be avoided by doing your research. It also pays to be smart in your decisions when it comes to choosing the tax lien properties included in the auction. Learn as much as you can and get information available no matter how small it is. Study thoroughly the properties you want to bid. Take note that some investors bid blind. They often end up with properties worth nowhere near the money they bid on it. So, take advantage on this situation too.

Important Rules in Tax Lien Sale

rulesimportantKnowing the rules and terms in a tax lien sale is very important.  These rules specify when and how you would need to register for the sale, where the bidding is going to take place, what the procedures are, and when to pay for any successful bids.  Do not forget that you would not be allowed to register for the tax sale if you’re going to forget this information.  Plus, you won’t be allowed to place bids if you’re going to miss the registration.

Take note that you are required by the county to follow the correct method of payment.  A lot of tax collectors would only accept bank checks or Automated Clearing House (ACH) debit if it is an online tax sale.  Also, payments are usually made right after the tax sale which is mandated by counties.  Remember that you can be fined or lose successful bids by failing to do so.  Worst case scenario is not to be allowed to participate in future tax sales, if no proper payment is made in due time.

Pre-Auction Tax Lien Investing Deals

Pre-Auction Tax Lien Investing DealsHave you heard about pre-auction tax lien investing?  It is the option given to real estate investors to purchase tax lien properties directly from the homeowner before it goes to a tax sale.  But prior to doing that, a research on tax delinquent properties must be done in order strike a deal with the homeowner.

With pre-auction investment on tax liens, you get the opportunity to get the properties at cheap prices.  Little do other investors know, some of these homeowners are letting go of their properties because of personal reasons.  They come to the difficult decision of selling rather than get nothing from the government. This is where you come in and land a deal of a lifetime.

Online Tax Lien Sales

Online Tax Lien SalesIf 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.

Overages at a Tax Deed Sale

Overages at a Tax Deed SaleWhen 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.