Tax Lien Properties Research A Must

mustResearching for tax lien properties beforehand is a must to be guaranteed of profits after the auction ends.  However, some people are under the impression that only little research is needed to get paid on a lien.  They just go out to the nearest county with an auction, purchase any lien, and expect to be paid in the future.  Well, that is now how it works.

The interest rate in your lien is guaranteed by the government.  It must be noted however, you are not guaranteed to get paid.  The property is your guarantee.  So, better make sure that the property you’ve bid and won is valuable before buying its lien.  Make sure that you can sell it to make profit.

Tax Lien Certificates Help Fund Public Services

publicservThere are so many counties in the United States that conduct separate tax sales for their own liens.  Why do these counties sell these tax liens in the first place?  It is because they need the money to pay for public services such as police, schools, hospitals, parks, and many more.  By state laws, every county is authorized to collect the taxes due from each homeowner, which remains unpaid by selling at public auctions.  This can either be tax lien certificates or tax deeds.  It can also be both.

There are some books on the subject of selling tax liens.  Most counties have websites where you can get a list of these liens for sale.  Auction dates and frequently asked questions are also available to read.  Moreover, there are a number of approaches you can take to get more information which can be found in the internet.

Tax Lien Investing Steady Income

steadyTax lien investing is one of the best methods to establish a steady stream of income in the real estate market.  However, it would take research to learn the ropes but would be well worth the effort afterwards.  This is the reason why investors are diving in for the opportunity that guarantees profits through interest rates.

With tax lien investing, you can easily gain as much as twenty percent on your initial investment with little risk.  This differs for every state of course.  Plus, there’s an opportunity to flip the property later on for more profits.  These and more, makes investing in tax lien a very attractable investment in the U.S. nowadays.

Stay Put to Get Better Tax Lien Properties

putWhen you’re thinking to win the lien certificates that you badly want in an auction, there is probably some hesitation on what to do exactly.  It’s because it is a golden opportunity that must never be passed upon.  Don’t worry here is a tip for you to help with your property investment goals.

It is quite clear that at a daylong auction of tax liens, many of the bidders would leave for a lunch break.  And some people had even left before the auction is over.  It is exactly at those times which present an opportunity if you’ve decided to stay behind.  Situations like these offer lesser competition as there are fewer bidders in attendance.  It is best to take advantage of this so that you can get the tax lien properties that everybody wants.

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.

Tax Lien Information You Need

needThere 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.

Real Income in Tax Lien

realincomeInvesting 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.

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.

Tax Deeds Loophole Strategy

Tax Deeds Loophole StrategyIf 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.

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.